Daily Business Report-Dec. 11, 2019
San Diego Trolley at American Plaza Downtown. The Trolley, operated by the San Diego Metropolitan Transit System, began service on July 26, 1981. (Photo: MTS)
Report: MTS delivers $1 billion
in annual value to regional economy
The San Diego Metropolitan Transit System (MTS) generated a massive $1 billion in positive economic impact for the region, according to a new report conducted by the Fermanian Business & Economic Institute at Point Loma Nazarene University.
The report concludes that every dollar of public investment returns $2.82 in the form of jobs, infrastructure investment, productivity gains, environmental benefits and money saved by riders.
“MTS is connecting the economy in San Diego. Access to a convenient, safe and reliable transit system is the cornerstone of major metropolitan cities. It plays a significant role in bringing more investment, attracting talent and reducing greenhouse gas emissions. This Economic Impact Report highlights the numerous benefits that MTS is already bringing to San Diego communities, and why continued support of MTS is a wise investment in our transportation future,” said MTS Board Chair Supervisor Nathan Fletcher.
The transit system generates positive economic impact through a number of channels, particularly jobs, according to the report. MTS is responsible for nearly 13,000 jobs and approximately $625 million in total personal income. This includes capital spending, direct and indirect employment, and service contracts.
“As the region considers the future of transportation, it is important for policymakers, business leaders, and residents to know the economic linkages and effects of its transit system,” the report said.
MTS commissioned the Fermanian Business & Economic Institute to conduct the study based on economic data from the fiscal year ending in June 2018.
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SENTRE acquires Bonita Point Plaza
in Chula Vista for $30.7 million
San Diego-based commercial real estate investment firm SENTRE announces the $30.65 million acquisition of Bonita Point Plaza, a 58,761-square-foot shopping center at the intersection of 1451-1479 East H St and 720-752 Otay Lakes Road in Chula Vista.
Bonita Point offers 27 tenants, with 38 percent original to the property. The majority of tenants offer a focus on “daily needs” shopping, including Rite Aid, Starbucks, Chipotle, Subway, Wells Fargo, Chase Bank and Navy Federal Credit Union. notably, The property is also shadow anchored by a Ralphs grocery store.
The shopping center was built in 1989 and until present day, was owned by the original developer. SENTRE plans to invest an estimated $1 million ($20 per square foot) to further enhance leasing, operations and the customer experience at the shopping center.
The property was acquired from Bonita Point Plaza, a California Limited Partnership, an entity managed by Sudberry Properties. The seller was represented by Steve Avoyer and Brad Williams of Flocke & Avoyer Commercial Real Estate and John Still of Point Realty Advisors. New financing was arranged by CBRE’s Debt & Structured Finance Team led by Scott Peterson, Bill Chiles, Brian Cruz and Morgan Fraser.
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Cell phones have their day in court
Dan Morain | CalMatters
A trial opened in Manhattan on Monday over the $26 billion merger of T-Mobile and Sprint.
Attorney General Xavier Becerra’s deputies, along with attorneys representing a dozen other states and Washington D.C., are challenging the merger, contending it would hamper competition.
U.S. District Judge Victor Marrero is insisting on wrapping up the trial relatively quickly, The Wall Street Journal Reports.
T-Mobile pressed hard in Sacramento to win approval of the merger, spending $781,000 on lobbying in the first three quarters of the year and offering sweeteners, including creation of a 1,000-employee customer service center in Kingsburg, 30 miles south of Fresno.
Meanwhile: The U.S. Supreme Court let stand a lower court ruling authorizing Berkeley to require warnings on cell phones sold within city limits, The San Francisco Chronicle reports.
The notice: “If you carry or use your phone in a pants or shirt pocket or tucked into a bra when the phone is ON and connected to a wireless network, you may exceed the federal guidelines for exposure to RF radiation.”
Telephone companies claimed the notice violated their First Amendment rights.
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Murray Reservoir projects aimed to enhance
water quality, fish habitat and improve safety
Two environmental improvement projects at the city of San Diego’s Murray Reservoir will enhance fisheries habitat at the reservoir, water quality in the San Diego River and reduce wildfire vulnerability for the area, city officials said.
Over the next six months, the Urban Corps of San Diego County will remove non-native plants and trees along Airoso Avenue to Murray Dam as part of the Chaparral Canyon Habitat Restoration Project.
The removal of invasive plants and subsequent native habitat restoration will directly benefit the city and the San Diego River Conservancy by improving water quality in the San Diego River, reducing the canyon’s vulnerability to wildfires, and help promote public health and safety, officials said. Funding for the $382,513 project comes from the San Diego River Conservancy and the state’s Water Quality, Supply and Infrastructure Improvement Act.
In addition, the city is working with California Department of Fish and Wildlife on a fisheries habitat enhancement project at Murray Reservoir through June 2020. This project is intended to increase fish abundance and angling opportunities for the public by adding fish habitat structures to the reservoir.
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California live science firms expand
employee benefits to attract, retain talent
California life science companies are sweetening the terms of employment even further to attract and retain employees by offering a broadening array of benefits and perks, according to an employer survey conducted by Marsh & McLennan Agency (MMA).
To compete in today’s nearly full-employment economy, life science companies are being more generous with retirement benefits, financial wellness solutions, work-life balance accommodations, mental and physical health benefits, flexible work schedules, Paid-Time-Off (PTO) and leave policies, along with numerous convenience perks to reduce the stress on harried workers.
“Life science companies are setting a new high bar by offering a richer set of employee benefits on par or better than the technology industry,” said Chris Williams, CEO of MMA’s West Region. “Sourcing talent in California’s high-cost regions, where many life science companies are located, requires continual innovation and keeping current with the marketplace. While the tech industry has been a pioneer of unique perks and benefit offerings, we are seeing the life science industry follow suit to compete for the best and the brightest.”
The survey, conducted in September 2019, included responses from more than 120 public and private companies primarily in San Diego, San Francisco-Bay Area, Los Angeles and Orange County.
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La Mesa’s Fourpenny House for sale
By West Coaster
Fourpenny House, a Scottish-inspired brewpub in the heart of La Mesa Village, is for sale, according to owner Peter Soutowood. Although a sale doesn’t necessarily spell the end for the business, it’s a less than ideal sign for the small brewery and restaurant, which opened less than two years ago. Known for their flagship Scottish ale, the brewpub promotes both whiskey and beer paired with traditional Scottish food like bangers & mash and Crofters pie as part of an authentic pub experience.
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Dave Rolland appointed council
communications director for the city of San Diego
Dave Rolland, founding editor of San Diego CityBeat, has been named the city of San Diego’s first council communications director. His appointment was announced by Council President Georgette Gómez.
In this capacity, Rolland will work to develop the City Council president’s communication strategy. He will also serve as a liaison to the city’s Communications Department.
Rolland comes to the city after nearly five years of serving in a variety of communications roles with the office of State Senate President Pro Tempore Toni Atkins, spanning her time as state Assembly Speaker, Speaker Emeritus, Senator, and Senate Leader. Before that, he worked as a journalist for more than two decades, including 13 years as the founding editor of San Diego CityBeat.
At CityBeat, Rolland turned a biweekly music publication into a general-interest alternative weekly that became known for investigative reporting, provocative editorials, and the best arts and music coverage in San Diego.
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November home sales decline in San Diego County
With the holiday season in full swing, San Diego County home sales took a dip in November, according to housing statistics compiled through the San Diego Multiple Listing Service by the Greater San Diego Association or Realtors.
Single-family resale home sales fell by 13 percent in November, compared to October, while attached properties (condominiums and townhomes) were 24 percent lower than the previous month. Total sales were virtually unchanged from one year ago, although single-family homes saw a nearly 4 percent increase from November a year ago.
The median price of single-family homes ticked up by 1 percent in November to $665,000, which is about 5 percent higher than a year ago. Condo and townhome prices hit $431,350, about a percent and a half increase over October, and nearly 9 percent higher than a year ago.
In November, the ZIP codes in San Diego County with the most single-family home sales were:
92127 (Rancho Bernardo West) with 54
92057 (Oceanside North) with 43
92028 (Fallbrook) with 42
92020 (El Cajon) with 41
92019 (El Cajon) with 40
The most expensive single-family property sold in November in San Diego County was a new-construction home in Solana Beach, with more than 6,100 square feet of living space, panoramic ocean views, 4 bedrooms, 6 bathrooms, a detached guest quarters, and sale price of nearly $8.6 million.
