Daily Business Report: Thursday, Sept. 23, 2021
As California drought deepens,
water use drops only 1.8 percent
By Rachel Becker | CalMatters
Californians reduced their water use at home by a meager 1.8 percent statewide in July compared to last year, even after Gov. Gavin Newsom urged residents to conserve 15 percent and drought continues to spread across the state.
Officials warned water providers south of the Delta who rely on state water allocations — already slashed to 5 percent this year — to brace for the possibility of zero supply next year.
The Department of Water Resources also cautioned that next year’s cuts in supply could expand to growers and others known as settlement contractors, whose claims to the water predate California’s massive systems of reservoirs, aqueducts and canals.
“Californians always have hope, and that’s healthy. But we need to be prudent,” Karla Nemeth, director of the state Department of Water Resources, said in an interview. “We’re doing more conservative planning than we’ve ever done.”
Drought conditions deemed extreme or worse now cover nearly 90 percent of the state.
Hundreds of domestic wells are running dry, and levels in major reservoirs have dropped drastically below historic averages — which bodes ill for supplies next year.
TOP PHOTO: Sprinklers irrigate a North Hollywood park in June, during California’s severe drought. (Photo by David Crane, The Orange County Register via AP)
Higher water costs on the horizon for San Diego region
By MacKenzie Elmer | Voice of San Diego
San Diego County residents should expect to pay a lot more for water in the near future.
The San Diego County Water Authority, which controls most of the region’s water resources from the drought-stressed Colorado River, is predicting anywhere from a 5.5 to 10 percent increase in the cost of water beginning in 2023, with hefty hikes continuing in the years thereafter.
The agency pointed to multiple drivers, chief among them an expected drop in demand as more cities build water recycling projects and the Los Angeles-based Metropolitan Water Authority, which controls San Diego’s access to the Colorado River, continues raising its rates.
But that’s only part of the story. The city of San Diego, the San Diego County Water Authority’s biggest customer, which already pays some of the highest water rates in the country, is challenging the way the agency manages its billions in debt and pays for the stuff it builds — even calling for third-party audits of its financial plans.
“It is … incredibly important to the city that every rate driver be thoroughly analyzed to ensure rates are not escalating to a more unaffordable point on behalf of San Diegans,” Jay Goldstone, San Diego’s chief operating officer, wrote to Water Authority General Manager Sandy Kerl in a Sept. 15 letter.
City of San Diego water rates going up
The San Diego City Council has approved a 3 percent water rate increase beginning in 2022, which covers the cost of the Water Authority’s rate hike beginning that same year, and a 5 percent increase in wastewater rates.
DermTech Inc. leases space in Del Mar
Corporate Centre for company headquarters
DermTech, Inc., a leader in precision dermatology, has leased approximately 96,000 square feet of Class A space at the Del Mar Corporate Centre (DMCC) for its new corporate headquarters in Del Mar Heights.
The building will also be the site of the company’s laboratory (the “DermTech Gene Lab”) where DermTech will among other things, process its DermTech Melanoma Test to aid in the early detection of melanoma.
DermTech’s new headquarters will be located at 12340 El Camino Real and will undergo a significant transformation that will include conversion of office space to life sciences laboratory space. Owned by Kilroy Realty, DMCC is a three-building, Class A campus.
Cushman & Wakefield’s David Odmark represented DermTech and Cushman & Wakefield’s Brett Ward, Brian Starck and Michael Cassolato represented Kilroy Realty in the transaction.
Dome Construction expands to San Diego
Dome Construction, a general contractor, has announced the opening of its first office in San Diego to better serve the region’s biotech, health care and pharmaceutical sectors, as well as commercial interiors. The company is headquartered in South San Francisco and has offices across the state.
The company appointed Rob Cruden to lead the new office. Cruden has more than 20 years of experience in the construction industry and deep roots in the San Diego market.
The company said San Diego is a key market for Dome’s expansion because it is home to more than 1,100 life science companies and over 80 research institutes, accounting for 16 percent of California’s biotech industry. San Diego ranked fifth in lab space in the country and has a top reputation as a biotech hub due to its third-highest biotech venture funding in biopharma and fourth in patents, according to the company.
San Marcos Plaza in San Marcos sells for
$16.3 million to an affiliate of Vertical Ventures
San Marcos Plaza, a 160,000-square-foot flex property in San Marcos, has been sold for $16.3 million to Moreno Valley F1 Owner LLC, an affiliate of Vertical Ventures LLC. The seller was San Marcos Plaza/JVP LLC.
Located at 330-340 Rancheros Drive, San Marcos Plaza is a multi-tenant flex, industrial, office, and showroom park. The buyer will convert the property into commercial condominiums for sale to small businesses, with units ranging in size from 400 to 38,000 square feet.
CBRE’s Phillip Linton represented the buyer. He and Blake Wilson, also with CBRE,
have been retained to market the units for sale. CBRE Project Management has been retained to perform renovations and upgrades to the two-building project.
Biocept Inc. implements COVID-19 testing
program at selected community colleges
Biocept Inc., a provider of molecular diagnostic assays, products and services, has implemented its COVID-19 testing services at more than 30 community college campuses across California, streamlining the testing and tracking process for administrators, and allowing students and staff to easily schedule and complete COVID-19 testing.
Since launching SARS-CoV-2 testing services for customers in June 2020, the company has received more than 570,000 samples for processing.
Many California community colleges have established COVID-19 vaccine and testing policies for students and staff. To support these efforts, Biocept is providing PCR-based COVID-19 testing services that include conveniently located onsite sample collection at college campuses. Samples are collected by health care providers and processed at the company’s CLIA-certified, CAP-accredited laboratory, with results typically available within 48 hours of receipt.
Michael Rivera joins Crosbie Gliner Schiffman
Southard & Swanson as newest partner
Crosbie Gliner Schiffman Southard & Swanson LLP, a commercial real estate law firm, announced the addition of Michael Rivera as its newest partner.
Previously a shareholder with Gresham Savage, Rivera will work in both CGS3’s Los Angeles and San Diego offices.
Prior to joining CGS3, Rivera was a key member of Gresham Savage’s transaction group, where he focused his practice on the acquisition, development and leasing of commercial real property.
Over his 15-year career, Rivera has successfully closed several significant commercial real estate transactions, including acquisition, development, leasing and disposition of vacant land, retail, office and industrial projects – representing some of the nation’s most recognized developers.
J. Walcher Communications promotes two
staffers and hires account coordinator
J. Walcher Communications, a San Diego public relations and marketing agency, has promoted Ashley Bendas to account supervisor, Olivia Stafford to senior account executive and hired McKenna Ryan as account coordinator.
Ashley Bendas, as an account supervisor, will continue to manage a number of real estate, hospitality, nonprofit and professional service client accounts with campaign management, media relations, social media management and more. She joined the agency in 2013 as an intern and returned in 2015 An account coordinator.
Olivia Stafford continues to develop successful media relations campaigns and strategic thinking to produce meaningful results for JWC’s clients. Prior to joining JWC, Stafford worked at Focuscom Inc., a San Diego public relations and public affairs firm.
McKenna Ryan joins JWC as an account coordinator and will assist on hospitality, nonprofit, retail and professional service clients, providing media relations, social media, event coordination, project management, along with digital and marketing strategies.
Vincent Whipple joins SDSU as
Artist in Residence for 2021-22
Arts Alive SDSU has announced Vincent Whipple, an American Indian performing artist and educator who has worked in Southern California tribal communities for more than 30 years, as Artist in Residence for the 2021-22 academic year.
Whipple has served as the director of tribal relations for California State University, San Bernardino, and he has been the artistic director for the Wichozani Native American Dance & Theater Company, a Southern California based theater group focusing on cultural revitalization through Native music, dance, theater, and storytelling. He is an enrolled member of the Navajo Tribe of Arizona and is also descended from the Oglala Sioux Tribe of South Dakota.
Whipple’s residency will provide opportunities for students in classes, organizations, and centers to engage in critical dialogue about arts activism, identity, and diversity, especially as they relate to Native and Indigenous cultures. In spring 2022, the residency will culminate in a performance event on campus, featuring student participation and addressing themes emerging from these conversations.
Housing Commission board chair and
commissioner reappointed to new terms
The San Diego City Council has confirmed Mayor Todd Gloria’s reappointment of San Diego Housing Commission (SDHC) Board Chair Stefanie Benvenuto and Commissioner Eugene “Mitch” Mitchell to new four-year terms on the board.
Benvenuto is the director of Public Affairs for the San Diego Regional Chamber of Commerce. She previously served as the chamber’s public policy manager, managing its Infrastructure, Housing & Land Use Committee, where she led efforts on housing affordability and availability.
Mitchell is the senior vice president of diversity and community partnerships for Sempra, the parent company of San Diego Gas & Electric (SDG&E) and additional utility companies. He also serves on the boards of directors of the Children’s Hospital of Los Angeles Foundation, San Diego Museum of Art, among others.
Persephone Biosciences announces
collaboration with Janssen Biotech Inc.
Persephone Biosciences Inc., a privately held biotechnology company, announced that it has entered into a collaboration agreement with Janssen Biotech Inc., one of the Janssen Pharmaceutical Companies of Johnson & Johnson. The agreement was facilitated by Johnson & Johnson Innovation.
Under the collaboration, Persephone will analyze stool samples collected as part of a Janssen oncology clinical trial using Persephone’s proprietary stool collection kit, and the company will have exclusive licensing rights to any biomarkers discovered.
Persephone’s laboratories are currently located at the Johnson & Johnson Innovation – JLABS incubator in San Diego, and the company is also part of BLUE KNIGHT, a joint initiative between Johnson & Johnson Innovation – JLABS and the Biomedical Advanced Research and Development Authority (BARDA).
UC San Diego named No. 3 best
public college by Forbes
The University of California San Diego has been ranked third among the nation’s top public colleges, according to the Forbes 2021 list of America’s Top Colleges. UC San Diego was No. 15 out of the complete list of 600 four-year private and public colleges in the country.
After suspending the annual ranking in 2020, Forbes has returned with a revamped methodology that digs deeper into measures of accessibility. The publication assessed universities based on academic success, student debt, retention rate and graduation rate, among other factors. Notably, the ranking took into consideration diverse populations such as those receiving federal Pell Grants, as well as undergraduates who come from low- and moderate-income backgrounds.
Two professors earn NSF grant
to study minority entrepreneurship
Two Cal State San Marcos professors have teamed up to receive a grant from the National Science Foundation to explore what factors affect the development of entrepreneurs in minority communities.
The grant of $215,740 is notable in part because of its interdisciplinary nature. The awardees are Carly Offidani-Bertrand, an assistant professor of human development, and Paola Ometto, an assistant management professor. Ometto is believed to be the first tenure-track faculty member in CSUSM’s College of Business Administration to receive a NSF grant.
The grant will fund research to understand the development of entrepreneurial ventures in minority communities of color, as well as how marginalized individuals use entrepreneurship as a pathway for overcoming racial discrimination and socio-legal exclusion. The two professors also hope to focus on the challenges faced by entrepreneurs of undocumented status as part of a partnership with the CSUSM DREAMer Resource Office.
MiraCosta College selected as Preferred Provider
of Healthcare Talent by Advancing San Diego
MiraCosta College has been named a Preferred Provider of Healthcare Talent by the Advancing San Diego (ASD) program. Advancing San Diego is a collaborative effort to address skilled talent shortages and increase diversity in high-growth, high-demand jobs in the local economy.
MiraCosta College is one of three community colleges in the San Diego region selected as a Preferred Provider of Healthcare Talent. Selected through a competitive application process, preferred providers are colleges, universities, and certificate programs recognized by local employers for training the next generation of medical administrative professionals in San Diego. Eligible students of these programs are invited to apply for an ASD-funded internship in small companies in San Diego.
