Daily Business Report-May 14, 2021

Citizens Redistricting Commission under fire

for private meetings with companies like Google

CalMatters

The independent group of Californians charged with redrawing the state’s legislative and congressional districts has come under fire for holding private meetings with companies like Facebook and Google, working with a law firm that also represents the Legislature, and failing to publicly post meeting transcripts. 

Republican donor Charles Munger Jr., who was instrumental in creating the independent commission, accused it in a May 7 letter of violating state transparency laws. “I am sure that the public would like to know what the two social media giants think about redistricting too,” he wrote, referring to the commission’s private meetings with Facebook and Google. 

The commission is facing heightened political pressure as it redraws maps for the 2022 elections: Not only is it working under a pandemic-induced time crunch, but it also has to draw boundaries that account for California losing a seat in the U.S. House of Representatives — possibly costing an incumbent his or her job.

PHOTO: The California Capitol building. (Photo by Anne Wernikoff, CalMatters)

State Assembly passes bill to require 

fee transparency from food delivery apps

Food delivery companies often take advantage of small restaurants by charging hidden fees, with some restaurants owners reporting they’ve lost money on these transactions. On Thursday, Assembly Bill 286 by Assemblywoman Lorena Gonzalez (D-San Diego) to require companies like DoorDash, UberEats, and GrubHub to provide an itemized cost breakdown of each transaction to both customers and restaurants passed the Assembly with bipartisan support on a 55 to 8 vote.

“Small mom and pop restaurants and their customers have a right to know when they’re charged hidden fees on delivery orders so they can make informed decisions,” Gonzalez said. “This bill ensures customers and business owners can understand what they’re being charged, and delivery workers are actually receiving the full amount of their tips.”

David Singh, a restaurant owner for more than 27 years, says he made a tough decision during the pandemic to use GrubHub for deliveries at Mesa Pizza Co. in Santa Barbara to remain open. But soon after, Singh says he realized that he was actually losing money on every order placed with the delivery app.
Singh says after he placed an order to himself for one of his own pizzas, he was shocked to find out what he was being charged. He and his son updated their business website asking customers not to place orders on the platform, and instead call in their orders directly. AB 286 also would prohibit food delivery companies from charging higher prices for food than what the restaurant is charging its patrons.
Recently, Singh says he was able to hire his own delivery drivers again and end his contract with GrubHub. 

John Dunlap appointed park president

for SeaWorld & Aquatica San Diego

John Dunlap has been appointed park president for SeaWorld & Aquatica San Diego and is responsible for leading strategic planning and all operations for the parks. He succeeds Marilyn Hannes, who was promoted to a new role of senior vice president of strategic relationships for SeaWorld Parks & Entertainment after 23 years with the company, with five of those years leading the two parks.

Dunlap has a passion for animal conservation and is a seasoned, accomplished, and well-respected theme park industry leader with a proven history of developing world-class, thrilling, meaningful, and educational experiences for guests.

Prior to his current role, Dunlap served as president and CEO of the attraction management and advisory company, Iconic Attractions Group, where he helped clients in the United States and abroad develop business strategies to transform the performance of their parks. His projects included the redevelopment and opening of the Dubai Safari Park and the transformation of the Jungle Island theme park in Miami.

Prior to founding Iconic Attractions Group, Dunlap led one of the world’s most well-known and respected zoological parks as director of the San Diego Zoo.

Tri-City Medical Center partners with NAACP

to prepare youth leaders for success

Tri-City Medical Center’s investment in programs that enhance the wellbeing of the community continues as it partners with the North San Diego NAACP on its Youth Leadership Council education and training program to help North County youth realize their potential while pursuing inspiring dreams. In addition to financial support, Tri-City Medical Center leaders are contributing their knowledge and insights to help ambitious youth set goals, understand the path to success, and create opportunities to begin advancing their futures today. 

Each session of the Youth Leadership Council program connects 20 students with regional business and community leaders to identify career opportunities while receiving mentorship to focus their efforts as they work towards their personal ambitions. These leaders share insights and lessons they’ve learned throughout their careers so that students have a better understanding of their journeys ahead and are prepared for the challenges they’ll face.

Tower 16 Capital Partners acquires multifamily property

San Diego-based Tower 16 Capital Partners has acquired a two-property multifamily portfolio consisting of 214 units in Colton, Calif., for $41 million. The 1333 Canyon project consists of 104 units built in 1986 while the Reche Ridge Apartments includes 110 units built in 1985. The properties were acquired from a private seller in an off-market transaction.

Scott Peterson, Bill Chiles and Morgon Fraser of the San Diego CBRE Capital Markets team arranged debt financing on behalf of Tower 16.

City of San Diego hires nonprofit to help

San Diegans get broadband Internet service

The City of San Diego has hired a local community outreach organization – Pillars of the Community – to help eligible households take advantage of a new $3.2 billion federal program to lower the cost of broadband Internet service during the COVID-19 pandemic. 

The Federal Communications Commission’s temporary Emergency Broadband Benefit (EBB) program provides a benefit of up to $50 per month toward broadband service for eligible households and up to $100 per household toward a one-time purchase of a computer, laptop or tablet under certain rules. The benefit essentially results in free broadband as most Internet service providers have plans for low-to-moderate income households under $50 per month. The application is only available online or by mail. 

Located in southeastern San Diego, the nonprofit  works directly in the San Diego Promise Zone, which comprises the city’s most economically disadvantaged neighborhoods. Pillars will be partnering with at least a dozen other trusted community groups to sign up residents for the EBB benefit. 

Kleinfelder signs lease in The Paladion

office building for company headquarters

JLL has signed Kleinfelder, an engineering, science, and construction services firm, to a new lease for 26,944 square feet of office space at The Paladion, a four-story, Class A 167,000-square-foot building located at 770 First Ave. in Downtown San Diego. Kleinfelder will use the space for its headquarters which it is relocating from another building in Downtown.

JLL’s Tony Russell and Richard Gonor represented the landlord, Bosa, in the lease.  Kleinfelder was represented by Joe Bernstein of JLL.

JLL Managing Director Joe Bernstein went on to say 

“Kleinfelder was attracted to the new modern facility, large floor plates and location with onsite and nearby amenities,” said Bernstein.

Recently developed by Bosa and designed by JWDA Architecture, The Paladion offers immediate move-in ready options for office and life science companies seeking large floor plates in a central downtown location.  

San Diego County Credit Union 

holds free auto buying webinar

San Diego County Credit Union will present a free Auto Buying Webinar on Wednesday, May 19 from noon to 1 p.m. SDCCU auto experts will present the webinar, allowing the community the convenience of joining the presentation online from the safety of their own homes.

During the webinar, SDCCU auto professionals will walk attendees through the car buying process discussing topics including ways to shop and find your vehicle, pros and cons of a new vs. pre-owned vehicle, loan vs. lease and how to make the financing process smooth and convenient. 

This free webinar is open to the public, but virtual space is limited and reservations are required. To register or for details, please visit sdccu.com/fww. The webinar is part of Financial Wellness Wednesdays, an ongoing program hosted by SDCCU to help provide the community access to free financial wellness information. For a complete list of upcoming Financial Wellness Wednesdays webinars, visit sdccu.com/fww.

Cue Health Inc. announces completion

of $235 million private financing round

Cue Health Inc.,  a San Diego health technology company, announced the closing of a $235 million private financing round. The investment  includes participation from new investors Perceptive Advisors, MSD Capital, and Koch Strategic Platforms, a subsidiary of Koch Industries, existing investors Johnson & Johnson Innovation – JJDC Inc., Decheng Capital, CAVU Ventures, ACME Capital, and others. The capital will be used to accelerate Cue’s growth as it pioneers a digital transformation of health care, beginning with diagnostics.

Cue expects to enable end-to-end care journeys from diagnostic tests to physician consultation via telemedicine through to intervention.