Daily Business Report-Sept. 19, 2019
BAE Systems’ ship repair team will tandem dry-dock two Navy destroyers, the USS Decatur and USS Stethem. (Photo: BAE Systems)
Navy awards BAE Systems $185 million
for tandem destroyer ship modernization work
BAE Systems has received $170.7 million in contracts from the U.S. Navy to perform simultaneous maintenance and repair on two Arleigh Burke-class guided-missile destroyers in its San Diego shipyard. Under the awarded contracts, the shipyard will tandem dry-dock the USS Stethem and USS Decatur in October.
The synchronized two-ship docking will be a first for the company’s newest dry-dock in San Diego. The contracts include options that, if exercised, would bring the cumulative value to $185 million.
“The ability to simultaneously dock two DDGs is a special capability that BAE Systems brings to our Navy customer and comes at a critical time when additional throughput is necessary to meet surface combatant demands and modernization requirements,” said David M. Thomas Jr., vice president and general manager of BAE Systems San Diego Ship Repair. “Beyond the remarkable nature of this tandem docking, it will be business as usual for our shipyard team and partners given our significant experience working with the Arleigh Burke class.”
Positioned end to end, the USS Stethem and USS Decatur will be lifted together inside BAE Systems’ “Pride of California” dry-dock. Installed in 2017, the Pride of California is 950 feet long, 160 feet wide and has a lifting capacity of 55,000 tons – making it the largest floating dry-dock in San Diego. The destroyers each displace about 9,000 tons and are expected to be re-floated in April 2020.
The USS Stethem is the 13th ship of the Arleigh Burke class, which is the Navy’s largest class of surface warfare combatants. Named for Master Chief Constructionman Robert Stethem, the 505-foot-long ship was commissioned in October 1995. BAE Systems will perform hull, mechanical and engineering repairs aboard the ship. Once back in the water, the Stethem’s Extended Docking Selected Restricted Availability (EDSRA) is expected to be completed in October 2020.
The USS Decatur is the 23rd ship of the Arleigh Burke class. Named for the early 19th Century Naval hero Stephen Decatur Jr., the ship was commissioned in August 1998. BAE Systems will perform much of the same upgrade work aboard the 505-foot-long Decatur as it will perform on-board the Stethem. After undocking, the Decatur’s EDSRA work is expected to continue into October 2020.
BAE Systems’ San Diego shipyard currently employs about 1,300 people and hundreds of temporary workers and subcontractors nearby the San Diego-Coronado Bridge.
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Gov. Newsom signs bill to expand protection
for rideshare drivers and other workers
San Diego Assemblywoman Lorena Golzalez’s bill to limit when businesses and companies can classify employees as independent contractors was signed into law Wednesday by Gov. Gavin Newsom. In a signing statement, Newsom called AB 5“landmark legislation” to combat worker misclassification.
Under the so-called ABC test required by the decision, workers can qualify as independent contractors if they are free from employer control or direction, engaged in an independent trade or profession and the work takes place outside the business’ normal scope.
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City Council votes 7-2 to establish
‘Community Choice’ green energy authority
The San Diego City Council voted 7-2 Tuesday to establish a joint-powers authority to buy and sell energy in competition with San Diego Gas & Electric, five days after the council’s Environment Committee approved the proposal. The council approved an ordinance implementing public sector energy service as well as a resolution authorizing Mayor Kevin Faulconer to establish the JPA, formally titled the San Diego Regional Community Choice Energy Authority. City Sustainability Director Cody Hooven said the city is likely to change the name to something more marketable in the future.
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Grand opening Saturday for new
Allied Gardens single-family home development
Pebble Creek Companies, Casbri Development and Presidio Residential Capital will hold a grand opening Saturday at River View Village, a new 6.36-acre Allied Gardens neighborhood offering 16 single-family homes on Wembley Street in San Diego. The event is from 11 a.m. to 4 p.m.
The three- to five-bedroom, two-and-a-half to four bath homes are available in three floor plans ranging from 1,938 to just under 2,495 square feet on lots ranging from 4,300 to 32,000 square feet. All homes have private yards, natural light, panoramic views and two-car garages. Prices start in the $780,000s.
River View Village is a joint venture project with Presidio Residential Capital, a San Diego-based real estate investment company.
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Nordic Naturals acquires San Marcos
industrial building for $6.943 million
Nordic Naturals Inc. has acquired a 63,800-square-food industrial building in San Marcos for $6.943 million. The seller was NV Chartwell Investments LP.
The building at 1709 La Costa Meadows Drive features 52,800 square feet of warehouse space and 12,000 square feet of two-story office space.
The buyer plans to renovate the property and to occupy 42,000 square feet of the premises and lease out the remaining 21,800 square feet before eventually expanding into the entire building.
Lee & Associates represented buyer and seller in the transaction.
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Carlsbad 10-unit apartment
complex sells for $2.72 million
The Roosevelt Apartments, a 10-unit complex in Carlsbad, has been sold for $2.72 million or $271,850 per unit. he seller was The Glenn Goldman Family Trust and the buyer was 3366 Roosevelt LLC. The complex at 3366 Roosevelt St. consists entirely of 1-bedroom units. Cushman & Wakefield represented buyer and seller in the transaction.
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Rancho Bernard industrial
building sold for $9.5 million
A 46,936-square-foot industrial building at 12375 World Trade Drive in Rancho Bernardo has been sold for $9.5 million to Alfa Partners LLC. The seller was 12375 World Trade Drive L.P. The industrial building is equipped with multiple dock and grade door positions, ESFR sprinkler capacity and 24-foot clear height, among other features.
CBRE represented the seller. Evan McDonald of Colliers represented the buyer.
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Littlenel Apartments in Imperial
Beach sells for $3.8 million
The 16-unit Littlenel Apartments at 812 12th St. in Imperial Beach has sold for $3.85 million to a private investor. The apartments consist of all two-bedroom, one-bath units.
Amenities include subterranean parking, air conditioning and a laundry facility. Many of the units provide repositioning potential for the new owner.
CBRE represented the buyer in the transaction.
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Cal State San Marcos receives top
diversity award for 6th straight year
Cal State San Marcos has received the 2019 Higher Education Excellence in Diversity Award from INSIGHT Into Diversity magazine. The award is a national honor recognizing U.S. colleges and universities that demonstrate an outstanding commitment to diversity and inclusion. The university will be featured along with 92 other recipient in the November 2019 issue of INSIGHT Into Diversity magazine. This is the sixth straight year the university has been recognized with the award.
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The long pure drama of Pure Water
After years of scientific progress, regulatory wrangling, political ups and downs, and searching for money, San Diego is finally ready to get to work on Pure Water. The multibillion-dollar project is expected to provide a third of the city’s drinking water from wastewater by 2035, but there have been innumerable hurdles along the way – including a recent labor dispute that required some last-minute maneuvering by the state Legislature. The recycling project is perhaps possible only because of compromises made after years of legal wrangling over sewage which, unlike drinkable water, the city has often had too much of.
Click here for a brief history of the Pure Water project by Voice of San Diego.
