Daily Business Report-Jan. 8, 2019
Gov. Gavin Newsom takes the oath of office from California Chief Justice Tani Cantil-Sakauye in Sacramento on Monday. (Photo for CALmatters by Randy Pench)
Gov. Gavin Newsom
takes the reins of state government
By Ben Christopher | CALmatters
Preceded by a Baptist church band, a Mexican roots music quartet, and the recital by his wife of a bilingual poem by the former poet laureate Juan Felipe Herrera, Gavin Newsom was inaugurated on the western steps of the capitol building Monday morning, closing out the Brown era of California politics and pointing towards a new, more assertively progressive politics out of Sacramento.
In an inauguration speech, delivered to a crowd that featured former governors, Supreme Court justices and Speaker of the House Nancy Pelosi, Newsom (with occasional accompaniment from his two-year-old son), went long on soaring rhetoric and short on concrete policy detail—what the governor would no doubt call a “conversation starter” for his first term. He also described California as the national counterweight to the politics of Trump, framing his own election not just as a California event, but one with national and global significance.
But he did offer a few hints of what kind of leader he hopes to be and where his policy priorities lie. Click here:
________________
Governor Dad: How Gavin Newsom’s
kids are about to shape California
By Laurel Rosenhall | CALmatters
Gov. Gavin Newsom was about half-way through his inaugural address Monday when his 2-year-old son toddled onto the stage, sucking on a green pacifier and gripping his blankie. Newsom, barely missing beat, hoisted the boy onto his hip, kissed him on the cheek and gamely continued delivering his first speech as the 40th governor of California.
At first glance, it appeared to be a working parent’s worst nightmare: Your kid needs you right at a moment of peak professional responsibility. At second glance, cynics might have wondered, ever so gently, whether it was political stagecraft that maybe went sideways when a small child allowed to wander adorably into the frame refused to stop wandering. Either way, the scene, which stole the show, quickly became a perfect symbol of Newsom’s ascent as governor—at once emblematic of the generational changing of the guard in California’s leadership, of Newsom’s policy priorities and of his station in life at this particular moment.
________________
Alan Nevin’s 2019 Economic
Outlook for U.S. and California
Alan Nevin, director of economics and market research at Xpera Group, has issued his 2019 Economic Outlook for the U.S. and California: Here are a few takeaways from the report:
• Real Estate: Rising interest rates are already causing a slowdown of existing home sales, even in very healthy economies like California. In 2019, there is a reasonable chance that existing home sales will decline 10-20 percent.
This means that home prices will not remain on their upward trajectory of the past few years. History tells us that a 6.0 percent interest rate is the tipping point. We’re not quite there yet and lenders are doing their best to keep interest rates down on mortgages. (They have to keep their point-making machines going.) However, the rising rates make it more and more dif cult to qualify for loans.
• In the new home market, we already see slowdowns in traffic and sales, particularly at the upper end of the market. It’s tough to trade up to a new house if your mortgage interest rate is going to balloon and your property taxes accelerate. It would be better to stay put until things cool down. Not a good thing for homebuilders, but great news for remodelers.
• Apartments: Construction will continue unabated, except for a few markets that are overbuilt with high-end apartments, such as San Diego and Orange County. In those markets, I anticipate high-end projects that were scheduled to move forward in 2019 will take a breather until the developers can be convinced that newly completed units are being rented, and without serious concessions and at rental rates that match their pro formas. Apartment lenders are tightening their requirements and requiring more equity and more assurance of demand.
Employment: We are still on track to add 200,000 jobs a month nationwide. The big three states continue to account for almost half of all new jobs. The other growing states listed in my book, “The Great Divide,” take up nearly another third. The problem is the other 35 states, including the “Trump” states, have not been able to produce jobs in a meaningful way, causing out- migration in those states. Goodbye Ford, GM and Harley Davidson.
Click here for the full report:
________________
Rusty Gage gets new five-year term
as president of the Salk Institute
The Board of Trustees of the Salk Institute has voted to extend a new five-year term to Rusty Gage, who became the Institute’s president a year ago, expanding his tenure through 2024.
“Aside from being a globally renowned scientist, Rusty is an inspiring leader whose energy, steadfastness and thoughtfulness have been invaluable in helping to guide the Institute. He has accomplished a great deal over the past year,” said Board Chair Dan Lewis
Under Gage’s leadership, the Institute launched major, bold new research efforts (the Harnessing Plants and Conquering Cancer initiatives); recruited dynamic new faculty members Kay Tye and Dannielle Engle; and established an Office of Equity and Inclusion. In addition, Gage, a world-renowned neuroscientist, led the Institute in the successful application for a $19.2 million award from the American Heart Association-Allen Initiative in Brain Health and Cognitive Impairment to undertake a comprehensive eight-year investigation of the mechanisms underlying Alzheimer’s disease and aging-related cognitive decline in an effort to uncover new therapies.
________________
SDEA hosts 39th annual
Employment Law Update Jan 17
San Diego Employers Association (SDEA) hosts the 39th annual Employment Law Update on Thursday, Jan. 17, at Crowne Plaza Mission Valley. The program features three of San Diego’s top attorneys — Chris Olmsted with Ogletree Deakins, Rich Paul with Paul, Plevin, Sullivan & Connaughton, and Lonny Zilberman with Wilson Turner Kosmo.
SDEA’s Employment Law Update will summarize the latest labor and employment law news, including updates on independent contractors, arbitration agreements, the wage increase affecting San Diego companies, new harassment prevention training requirements, and more.
The attorneys will share key insights from actual cases and review forthcoming legislative developments to keep an eye on throughout 2019. To learn more and to register, visit www.sdeahr.org.
________________
The Old Globe announces classical directing fellowships
The Old Globe announced The Old Globe Classical Directing Fellowship, led by the Globe’s Erna Finci Viterbi Artistic Director Barry Edelstein, a leading Shakespearean scholar, author, and director. Four directing fellows — Daniel Jáquez, Delicia Turner Sonnenberg, Sam White, and LA Williams — will participate in the pilot session of this new initiative. They will be in residence from Tuesday, Jan. 22 through Friday, Jan. 26, 2019.
The Fellowship will focus on Shakespeare’s text, how it is put together, and how it works in the imaginations and voices of American actors. In master classes, Edelstein will present a series of techniques that the Directing Fellows will then employ in rehearsals with a company of professional actors. The work will culminate in a private presentation on Saturday.
________________
City Council amends Filner’s
settlement agreement with developer
In a unanimous 8-0 vote, the San Diego City Council voted to amend a settlement between former disgraced Mayor Bob Filner and the CentrePoint apartment complex, now named Blvd63 Apartments located in Rolando.
In 2013, Filner halted ongoing construction of the CentrePoint apartment buildings, a development that was already approved for construction and had all necessary permits. Filner stopped construction at the Centrepoint project by instructing the city’s Development Services staff to stop conducting inspections on completed phases, which kept the builders from moving to the next steps.
In what former City Attorney Jan Goldsmith deemed illegal, Filner used the power of the mayor’s office to strong-arm the developer into paying $150,000 for neighborhood improvements and agreeing to rental restrictions.
Monday’s council action restored property rights to the owner .
________________
Barnhart-Reese Construction awarded
Design-Build Project Excellence Award
Barnhart-Reese Construction (BRC) was awarded the 2018 Design-Build Project – Excellence from the National Design-Build Institute of America for the Skyline Hills Branch Library Design-Build project. The owner/client was the city of San Diego. The BRC team received the award for finding solutions to complex challenges the project faced, including unexpected soil conditions, an occupied and busy site adjacent to a retail center and bus stop, and fill from unauthorized dumping. The project utilized an innovative and energy saving chilled beam cooling system, one of its first uses in a city of San Diego project.
Just above a $9 million project, the new Skyline Hills Branch Library replaced an outdated 40-year old library in the Skyline Hills community of San Diego, which has seen a 60 percent population growth in the last 40 years, yet still lacked a “community hub.”
The cooling strategy included utilizing a chilled beam cooling system which greatly reduces operating costs as the temperature of cooled water is higher than the temperature of cooled air but delivers the same cooling ability while reducing the cost of the water system.
Project partners included architects Little Diversified Architectural Consulting, engineering firm Marino Design Consulting, and specialty consultants Brady SoCal, Inc., Md Mitchell Design, Neal Electric and Countywide Mechanical.
________________
Personnel Announcements
Trevor Wells joins Ware Malcomb
Trevor Wells has joined design firm Ware Malcomb as studio manager, science and technology, in the San Diego office. In this role Wells will lead the growth of the Science & Technology Studio for the San Diego office and manage select projects.
Wells brings over 20 years of architectural experience to his new role at Ware Malcomb. While his expertise is focused on the Science & Technology sector, he also has extensive experience in designing commercial office, healthcare and industrial projects.
Over the last decade, Wells has focused his career on the planning, design and construction of scientific research and manufacturing facilities. Wells specializes in life science laboratories, interdisciplinary engineering environments, physical science laboratories, biocontainment labs and research facilities, vivaria, clean room environments, and biopharmaceutical manufacturing facilities. As a laboratory planning and design architect, Wells designs human-centered, sustainable lab environments integrated with the latest technology.
Ware Malcomb recently moved into a new, larger office space located at 3911 Sorrento Valley Blvd, Suite 120 in San Diego
________________
Wendy Urushina-Conn to resign as CEO
of Asian Business Association
The Asian Business Association announced that President and CEO Wendy Urushima-Conn is resigning to pursue other opportunities, effective Feb. 8. Over the last eight years, Urushima-Conn has helped to grow membership, strengthen the board of directors, enhance partnership programs and, most recently, launch the Business Development Resource Center.
“The time I’ve spent with ABA, from my early days as a volunteer to today, have been some of the most rewarding years of my professional career,” said Urushima-Conn. “I am grateful for the dedication of our staff and board of directors; and humbled by the work provided by our many committee members and volunteers. We couldn’t have achieved so much without everyone’s commitment and hard work.”
Under Urushima-Conn’s leadership, ABA has experienced growth and expansion of special events and educational programming including the California Asian Business Summit, Taste of Asia, and business workshops and courses provided in partnership with the Small Business Development Center and the Employment Training Panel.
Yen Tu, the vice chair of the ABA Board of Directors, will be the interim CEO while an extensive search for a replacement in conducted by the Executive Committee.
________________
Jim Chester named GM of Bahia Resort Hotel
Bahia Resort Hotel announced the selection of Jim Chester as its new general manager. Previously serving as the company’s director of food and beverage for nearly a decade, Chester will now oversee daily operations for the 313-room bayside resort in his new role.
Chester was brought on by Evans Hotels, the family-owned hospitality company comprised of the Bahia Resort Hotel, Catamaran Resort Hotel and Spa and The Lodge at Torrey Pines, in July of 2009 where he began his career with Evans as the director of food and beverage of the Catamaran and then a year later was promoted to director of food and beverage of both the Catamaran and the Bahia.
Prior to joining Evans Hotels, Chester served as the director of food and beverage of the AAA Four Diamond DoubleTree Hotel Sonoma Wine Country from 2004 to 2009. Before that he was a general manager for Viansa Winery in Sonoma. Chester began his career in the hospitality industry with the successful ownership and operation of two Domino’s Pizza franchises for nearly a decade.
Chester is a University of Alabama-Huntsville alum and earned a Gold Key Award for “Hotel Leader of the Year” from the San Diego County Hotel and Motel Association in 2015.
________________
Carlota Kienke joins Cavignac & Associates
Carlota Kienke has been hired as a commercial account administrator at Cavignac & Associates. In her new position, Kienke provides support and assistance to her team members within the agency’s Commercial Department, ensuring clients are well served in accordance with their specific needs. Among other duties, she is charged with processing endorsements, policies and certificates of insurance; handling billing and cancellation issues; administrative follow-up; reconciling audits; reviewing contracts; and performing various account manager tasks.
Kienke has 17 years of experience within the insurance industry. Most recently, she was an assistant underwriter for Alliant Specialty Insurance Services in San Diego, where she was employed for five years. There she managed renewal processing, underwrote pollution coverage, and supported the agency’s underwriters with the evaluation of risk to determine acceptability based on carrier guidelines.
Her previous career experience includes another five years with Houston Casualty Company in San Diego, where she served as senior assistant underwriter. For seven years prior to that, she was employed by Arrowhead General Insurance Agency, also in San Diego, where she served as an assistant underwriter.
________________
Edith Quiambao joins Oster and Associates
as digital marketing specialist
Editha Quiambao has joined Oster and Associates as a digital marketing specialist. Quiambao, an El Paso, Texas native, attended Boston University, where she focused on communications. After The Blizzard of 1996, she realized she had had enough of the snow and decided to settle in San Diego, where she has been ever since.
Editha originally worked for Oster and Associates in the late 1990s as a production manager. In her role at the time, she managed all client artwork from conception to production. She has worked in several industries, including hospitality, finance and technology.
In her return to Oster she will not only manage the agency’s social media presence but those of its clients.
“We are so happy to have Editha join our team,” said Bev Oster, president and creative director of Oster and Associates. “She brings her extensive experience in managing digital ads and targeted emails campaigns, having worked previously for KFMB stations, to our team.”
________________
Sundt Construction Inc. adds four to its San Diego team
Sundt Construction Inc. has added Ferdinand Benito, Martin O’Brien, Lamia Porter and Frank Vega to the company’s Building Group, California District’s San Diego office.
Benito joins Sundt as a quality control manager with over 20 years of experience in the construction industry. He has successfully supervised and managed various multimillion-dollar construction projects in commercial, educational, mixed use, healthcare and government. He earned his bachelor’s degree from the City College of New York in electromechanical engineering technology.
O’Brien rejoins the operations team in San Diego as senior project manager. With over 20 years of experience improving financial performance through estimating, designing, budgeting, reporting and strategic planning, O’Brien has knowledge of military, hospitality, office building and education market sectors. He holds a degree from West London Polytechnic, Hammersmith College of Building in London, England.
Porter will serve as an estimator for the company. She previously worked for companies in both Arizona and Texas in similar roles. Her market knowledge extends to commercial, healthcare and multifamily projects. Porter has previous experience in concrete estimation.
Vega brings over 14 years of experience in construction cost estimating and quantity surveying. Prior to working in estimating, Vega started his career as a Navy Seabee and spent time in the field as a lead carpenter in concrete forming and framing. He has market experience in commercial, hospitality, government, health care, education technology and industrial projects.
