Daily Business Report: Friday, Dec. 17, 2021
New data shines light on ‘California Exodus’
Cal Matters
Is there really such a thing as the California Exodus? The takeaway from a Wednesday report from the nonpartisan California Policy Lab: It’s complicated. The report found that while the Golden State is losing more than twice as many people to domestic migration than it did before the pandemic, the decline is largely due to fewer out-of-state residents moving in, not more Californians moving out. And the report doesn’t take into account international migration — which for more than a decade has helped California’s population grow, albeit at a slower pace than the rest of the nation.
Among the report’s key findings:
• 38 percent fewer people from other states entered California in September 2021 than in March 2020.
• 12 percent more Californians left the state during that period — but that uptick is on pace with pre-pandemic trends.
• All regions of California saw steep declines in people entering from out of state, but the impact was especially pronounced in the Bay Area, which saw a 45 percent decrease. (There was also a 21 percent increase in Bay Area residents moving to another state.)
• By net moves, the most popular destinations for Californians leaving the state were Texas, Arizona, Nevada and Washington. Tennessee, Montana and Idaho saw the largest percentage increase in California arrivals, according to a San Francisco Chronicle analysis.
“If these trends continue, the implications for California are significant, ranging from federal funding allocations and tax revenues to how many seats we have in Congress,” said report co-author Natalie Holmes. “Population swings can have even more dramatic effects on local jurisdictions.”
TOP PHOTO: A moving truck full of boxes. (Photo via iStock)
‘Tis the stressful season for holiday gift returns
A holiday surge in online shopping is expected to cause a backlog of product returns, compounding supply chain headaches for retailers
Retailers continue to fulfill e-commerce sales despite being challenged by supply chain constraints, shipping delays, skyrocketing transportation costs and labor shortages, according to a report by CBRE. The National Retail Federation predicts a 13 percent year-over-year increase in online sales during the 2021 holiday season (November and December) to $222.3 billion.
According to reverse logistics provider Optoro, two out of three consumers will return at least one gift during the holiday season. Given a higher-than-average return rate for online sales, at least $66.7 billion worth of product returns will be pushed back into the supply chain—a process commonly known as reverse logistics. As a result, retailers and logistics operators must decide what to do with returns of apparel, toys, electronics and many other items to recapture product values and minimize waste.
Airport Authority completes largest
bond sale by a California airport
The San Diego County Regional Airport Authority (Airport Authority) completed a major bond financing totaling $1.94 billion. Approximately $1.58 billion of the bonds will be used to pay for a portion of the New Terminal 1 program and achieved a true interest cost of 3.34 percent. This will reduce financing costs on a present value basis by an estimated $386.5 million over the life of the program when compared to the plan of finance approved by the Airport Authority Board of Directors in October.
Of the remaining portion of the bonds, approximately $357.2 million will be used to refinance existing debt that has been in place since 2013, resulting in net present value savings for the Airport Authority of approximately $52.7 million.
Investor demand for the Airport Authority’s bonds was very strong – investors placed more than $7.7 billion worth of orders for the bonds which contributed to the Airport Authority achieving a record-low interest cost. The bond sale’s advantageous circumstances were due to several factors, including pricing during a time when interest rates were more attractive, and the Airport Authority’s strong financial profile as evidenced by favorable credit ratings for Airport Authority bonds from Fitch Ratings and Moody’s Investor Services.
Austal USA finalizes deal on new San Diego
waterfront ship repair facility
Austal USA has finalized a deal to establish a repair facility in the Port of San Diego. The deal includes a long-term lease of a waterfront site in National City adjacent to Naval Base San Diego. Austal USA’s 15-acre site will focus on ship repair for U.S. Navy, Military Sealift Command, and U.S. Coast Guard ships. The site will be centered on a newly-built dry dock designed to efficiently dock small surface combatants and similar sized ships.
“When the dry dock is delivered we will be able to provide the Navy a highly capable full-service repair facility located in the homeport of San Diego,” said Austal USA President Rusty Murdaugh.
Austal USA will establish a full service ship repair capability providing maintenance and modernization for small surface combatants, unmanned and autonomous vessels, and other ships. The site will include a dry dock optimized to execute availabilities on Littoral Combat Ships (LCS) and other small surface combatants. Services will include technical and material support, topside work, and drydocking availabilities. The new facility will enable more availabilities to be completed in their home port of San Diego reducing the strain on the fleet and Sailors.
County receives Independent
Commission’s final redistricting map
The County of San Diego received the new maps that will outline county supervisorial voting districts for the next decade Wednesday from the Independent Redistricting Commission.
Redistricting — redrawing voting boundaries — is done every 10 years, using U.S. Census data to ensure that voting districts contain roughly the same number of people.
This was the first time that local boundaries were set by an independent commission. The 14-member commission capped off a year of work and 49 public meetings last week to meet its Dec. 15 deadline to submit the new boundaries to the County Clerk of the Board of Supervisors.
The new district boundaries take effect immediately.
The new maps establish one county supervisorial district — District 1 currently represented by Supervisor Nora Vargas — as a majority Latino district, with 61.4 percent of the population and 58.2 percent of the voting age population identified as Latino. District 1 includes unincorporated areas and the cities of Imperial Beach, National City and Chula Vista.
For boundaries of the four other supervisorial districts, click here.
UC San Diego Health to break ground
on new Hillcrest Outpatient Pavilion
A celebratory groundbreaking will be held at 1 p.m. today for the revitalization of UC San Diego Health’s Hillcrest campus. When finished, the building will feature state-of-the-art facilities, expanded patient care services and technologies and other community amenities to promote wellbeing.
Phase 1 of the project includes a 250,000-square-foot outpatient pavilion and a new parking structure with approximately 1,850 spaces for employees, patients and visitors, with both anticipated to open in 2025.
The outpatient pavilion will address the growing demand for specialized diagnostic, treatment and surgical services and will house specialty clinical programs, including oncology, neurosurgery, urology, otolaryngology and orthopedics, as well as ambulatory surgery operating rooms, gastroenterology procedure rooms, advanced imaging, infusion and radiation oncology.
The event is at UC San Diego Medical Center-Hillcrest, 214 Dickenson St.
Luna, a SDSU therapy dog, loves everybody.
Especially you.
When therapy dog Luna enters the room with her sandy curls or bounces across campus with a spry step, problems seem to melt away — or at least recede for a time.
But just like many students, Luna is new to the San Diego campus and still transitioning from learning at home.
It’s been more than 18 months since a generous donation paved the way for San Diego State University to adopt Luna, a Cavalier King Charles Spaniel/poodle mix, who joined Baxter as SDSU’s second therapy dog. The floppy-eared pooch is four months into her first semester on campus.
“She’s doing great!,” said Cristina Antonucci, Luna’s caretaker and a licensed psychologist with the Department of Counseling and Psychological Services.
James Rostello, a teacher from Kansas who retired to San Diego in 2005, paid for Luna’s adoption fees, training, supplies, food and upkeep, and he also pledged a $200,000 gift to provide therapy dogs for future generations of Aztecs.
City leaders in San Diego celebrate minimum
wage reaching $15 per hour on Jan. 1, 2022
Mayor Todd Gloria joined local leaders and workers on Thursday to celebrate the minimum wage increase reaching $15 an hour, which becomes effective Jan. 1, 2022. Gloria authored the city’s Earned Sick Leave and Minimum Wage Ordinance, which originally set the path toward $15-per-hour, when he was a councilmember.
“I have long believed that no one who works full time should have to live in poverty, and this increase in our minimum wage is the next step in getting us there,” Gloria said.
In accordance with city and state law, all employees in San Diego who perform at least two hours of work in one or more calendar weeks of the year within the City of San Diego will receive a wage increase from $14 to $15 an hour.
The minimum wage increase is applicable to all industries and businesses, with no exceptions, and tips and gratuities do not count toward payment of minimum wage.
Pro Football Doc to take on baseball
and basketball with new website
Pro Football Doc, a free source for injury information catering to sports bettors and fantasy players, announced it will be expanding into both basketball and baseball through a new website: Sports Injury Central (www.sicscore.com). Within Sports Injury Central, the company will add Pro Basketball Doc and Pro Baseball Doc to the popular Pro Football Doc (Official Injury Expert of FanDuel), and will provide year-round, up-to-the-minute injury updates and performance projections not found through any other source.
“The plan was always to move into other sports when we were ready,” said company founder David Chao. “Rebranding as Sports Injury Central allows us to do just that. My 17 years as team doctor with the Chargers gives me the insider knowledge to assess football injuries for bettors and fantasy players.”
Nitin Duggal appointed chief marketing
officer for Cue Health in San Diego
Cue Health Inc., a San Diego health technology company, has appointed Nitin Duggal as its first chief marketing officer. In his new role, he will be responsible for leading all marketing initiatives at Cue, including partners, direct to consumer, customers, employers, and providers.
Nitin has over 15 years of executive experience at high-growth technology organizations in Silicon Valley.
During his tenure, he has developed a proven track record of scaling innovative technology platforms, developing robust product portfolios and leading high-performance teams.
Nitin joins Cue to help further strengthen the company’s brand, marketing, and technology capabilities across its virtual care platform and products.
Nitin joins Cue from Abbott Diabetes Care, where he spent 10 years in a number of leadership positions.
Total U.S. construction starts falls sharply in November
Total construction starts in the nation fell 14 percent in November to a seasonally adjusted annual rate of $867.8 billion, according to Dodge Construction Network. Nonbuilding and nonresidential building starts bore the brunt of the decline, falling 30 percent and 21 percent, respectively, after seeing sharp increases in October as three large projects broke ground. Residential starts gained a modest 3 percent. Without October’s large projects, total construction starts in November would have increased by 5 percent.
UC San Diego launches new data science
graduate degree programs
UC San Diego has launched new master’s and doctoral degree programs at the Halıcıoğlu Data Science Institute (HDSI), the university’s hub for all things data science. The new programs join UC San Diego’s popular undergraduate data science programs for an integrated slate of courses and degrees targeting individuals at all educational levels, including working professionals and industry practitioners.
HDSI is launching two degree programs:
Master of Science in Data Science: The master’s program features courses in foundational areas that prepare students from diverse backgrounds for a successful career in data science.
Doctor of Philosophy in Data Science: The doctoral program aims to create leaders in data science who will challenge and expand the boundaries of knowledge in their field.
