Daily Business Report: Monday, Dec. 6, 2021
Dream of a grand central station now focuses
on Downtown; NAVWAR plan less favored
By Andrew Keats | Voice of San Diego
Regional planners are no longer certain that a Navy-owned facility in Old Town is the top choice for a new central hub for the region’s transit system.
The San Diego Association of Governments is now giving serious consideration to instead building the project downtown. That vision could include all or some of the downtown property that’s home to City Hall, two blocks of state property recently offered up as a development opportunity and a block in between those two that SANDAG has been trying to buy for years.
The alternative “San Diego Grand Central” concept would, like the version announced nearly three years ago that eyed the NAVWAR property along Interstate 5 in Old Town, serve as a hub of existing and future transit and bus services, while connecting the transit system to the San Diego International Airport.
But the downtown option would instead cover roughly 10 acres in and around the city’s existing Civic Center area, with more than 10 million square feet of new development on top of the transit hub, while also facilitating a transit connection to the airport.
The trolley already runs on C Street, in front of City Hall. That line would be built into tunnels under the re-fashioned San Diego Grand Central, while the Coaster line that ends at Santa Fe Depot nearby would also run underground in a tunnel beneath Second Avenue, SANDAG Executive Director Hasan Ikhrata said in an interview.
SANDAG made several symbolic agreements with the Navy to work on the project since Ikhrata and former Mayor Kevin Faulconer unveiled the plan in early 2019. Necessary environmental reviews are already underway, and SANDAG’s review lists the NAVWAR facility as its preferred option.
“Right now, NAVWAR, that’s how it’s listed, but that could change,” Ikhrata said. “We’re not abandoning the Navy, obviously we want the Navy to thrive and we want to work with them, but whatever location we pick, has to be cleared in maximum two years to cut the ground, and I’m not interested in just fantasy. I want to do things.”
The agency has already spent about $15 million reviewing options for a central transit hub for the region.
In addition to the NAVWAR and downtown options, the agency is also considering the site that’s currently home to the Port of San Diego’s headquarters along Pacific Highway, which could also take advantage of the nearby rental car center. That building is already connected to the airport terminals by a separated roadway. The inclusion of the Port property in SANDAG’s planning is also a new development.
Last month, the state of California asked developers to express their interest in revamping two downtown blocks that it owns. SANDAG anticipates jumping into that competition as part of its downtown concept. The state-owned property is between A Street and Ash Street, and Front Street and Union Street.
Between City Hall and the state property is another block that SANDAG has been
trying to fully acquire for years, as a stopover facility for the MTS busses that operate downtown, on top of which SANDAG would build itself a headquarters, rather than renting office space nearby. In the meantime, busses have parked on downtown streets, and locked restrooms on the sidewalks have been available for bus drivers between runs.
That block – bound by A Street, B Street, Union Street and State Street – would also be part of the downtown option, after SANDAG reached an agreement to buy the remainder of the property from the San Diego County Bar Association, Ikhrata said. A representative for the San Diego County Bar Association could not be reached immediately Thursday to confirm that it had agreed to sell the property.
“Downtown has got more attention as we looked at the engineering, and the difficulty of financing NAVWAR,” Ikhrata said.
The agency had considered Santa Fe Depot as a downtown option for a transit hub, but SANDAG always viewed it skeptically because it has limited capacity to handle more trains than already operate there. Ikhrata said the agency had concluded a downtown option there would be nearly impossible, but the acquisition of the Bar Association’s property led them to look more closely at the downtown option that staff plans to unveil at a Friday board meeting. Freight trains would still operate at Santa Fe Depot.
“From downtown, there will be a direct connection to the airport, and maybe to the Sports Arena,” he said. “This becomes the Civic Center of San Diego, and God knows San Diego needs it now.”
The pace of the NAVWAR project, Ikhrata said, has been too slow.
“We’re not ending NAVWAR, but just to be very frank, we’re a proud military town, and we want the military to thrive here, but if the Navy doesn’t move faster – we signed (agreements to work with the Navy) when I started, and obviously COVID has disrupted that,” he said. “But at the same time, we want to move and finish environmental and cut the ground, and they’re still discussing, you know, the value, and it’s just – I think NAVWAR makes a great deal of sense, but the Navy as a partner needs to be willing to move faster.”
He compared the downtown vision to the Moynihan Train Hall, a new transit hub in Midtown Manhattan where the Long Island Rail Road and Amtrak operates that is adjacent to Pennsylvania Station, where the subway and New Jersey Transit trains operate.
TOP PHOTO: A rendering of the San Diego Grand Central transit center concept. (Image courtesy of SANDAG)
Home Fed Corporation buys Escondido
apartments and will roll back rents
HomeFed Corporation has acquired Solana at Grand, a 519-unit apartment complex in Escondido for $167.5 million.
Located at 1501 E. Grand Ave., Solana at Grand features studio, one- and two-bedroom units that include remodeled interiors and patios/balconies. Community amenities include two swimming pools, fitness center, spa with sundeck, clubhouse, tennis court, grilling area, coffee bar and laundry facilities.
HomeFed Corporation has plans to convert the property to middle-income affordable housing through a JPA structure with CMFA and the City of Escondido.
“HomeFed Corporation will roll back rents to keep the property affordable to middle-income residents making between 61 and 120 percent of San Diego County Area Median Income (AMI) creating and preserving true workforce housing,” said CBRE’s Kevin Mulhern, who represented the buyer in the tranaction. “This is the first deal of this type to close in San Diego County with more deals likely to follow.”
Balboa Park Carousel designated a Historical Resource
The City of San Diego’s Historical Resources Board has unanimously voted to designate the Balboa Park Carousel and adjacent Kiddie Ride as Historical Resources. Currently operated by Forever Balboa Park, the Balboa Park Carousel has been ridden and enjoyed by countless San Diego residents and park visitors since it was first installed in Balboa Park nearly a century ago.
The research and application for the designation were prepared by Heritage Architecture & Planning under the direction of David Marshall, and Forever Balboa Park board member. Al and Kathleen Steele funded the research report and application process.
Located near the San Diego Zoo entrance at 1889 Zoo Place, the Balboa Park Carousel was constructed in 1910 during the golden age of carousels (c.1880–1920) by the Herschell-Spillman Company of North Tonawanda, New York. It was first located at Luna Park in Los Angeles before being purchased and moved to Coronado’s Tent City in 1913. The carousel was relocated to Balboa Park in 1922 and the Kiddie Ride was introduced in the early 1950s.
MG Properties Group wins Excellence Award
for Corporate Social Responsibility program
MG Properties Group, a private San Diego-based real estate investor and operator, is the recipient of a 2021 Multi-Housing News’ Excellence Award for its Corporate Social Responsibility program. The company supports three human services areas of focus: foster youth, the homeless, and the hungry.
Team members raised over $58,000 for initiatives in 2020. In 2021, MG employees have a goal to raise $65,000 for CSR initiatives; currently the team is pacing to exceed $100,000.
In addition to raising funds, a committed group of MG Properties employees volunteer as Court Appointed Special Advocates (CASAs), and work closely with their assigned case children, including accompanying them at court appointments and pertinent school meetings, during “volunteer time off” hours provided by the company.
Lavine, Lofgren, Morris & Engelbert
promotes three to manager
The accounting firm Lavine, Lofgren, Morris & Engelberg LLP announced the promotions of Rodolfo (Rudy) Mercado Jr. and Remington Mosey to the position of tax manager and Amanda Tazbaz to audit manager.
Mercado has been with the firm since 2016 and has experience providing a wide range of accounting and tax services to S corporations, partnerships and high-net-worth individuals. He is a member of LLME’s recruiting committee and actively volunteers for various community service events. Fluent in Spanish, Mercado received a Bachelor of Science degree in accounting from California State University San Marcos.
Mosey has also been with LLME since 2016 and has experience providing a wide range of accounting and tax services to small business owners, partnerships, LLCs, S corporations and high-net-worth individuals. Her focus has primarily been on real estate partnerships and trust and estate services. She received her Bachelor of Science degree in accounting from the University of San Diego.
Tazbaz has also been with the firm since 2016 and has experience providing accounting and auditing services to manufacturing, professional services, nonprofit companies, as well as employee benefit plans. She received her Bachelor of Science degree in accounting from the University of San Diego.
Anya Griffith has joined Jacko Law Group
Jacko Law Group, a San Diego-based law firm that provides securities and corporate counsel to the financial industry, has added seasoned regulatory and corporate securities lawyer Anya Griffith as Of Counsel with practice areas as investment adviser, investment company and private fund counsel, commercial contracts, and corporate transactions, mergers and acquisitions.
Griffith began her legal career in the international section of the Office of Chief Counsel at the U.S. Securities and Exchange Commission in Washington, D.C., where she worked on the intricacies and nuances of the Investment Company Act of 1940 and the Investment Advisers Act of 1940.
Her counsel is based on her ability to assist clients with their regulatory matters and concerns, including audits of an investment company and adviser operations; investment company registration issues; commercial contracts, such as non-disclosure agreements, stock purchase agreements; proxy consulting, and more. Her extensive experience enables her to strategically advocate for her clients and position them to achieve their business objectives.
Mark Bretz joins the Greater San Diego Association
of Realtors as director of public and political affairs
The Greater San Diego Association of Realtors has named Mark Bretz as director of public and political affairs.
In his role, Bretz will assist the association in influencing public policy and awareness among Realtor members as a liaison among SDAR, its membership, and the community.
He will build partnerships with industry leaders to build coalitions for the association’s positions on real estate laws and regulations and educate members on the importance of political activism and financial support to promote public policy affecting local, state and national real estate issues.
Most recently, Bretz served as an adjutant in the U.S. Marine Corps with the 3rd Marine Aircraft Wing in San Diego.
There he directed a staff of Marines to provide administrative support to the commanding general and analyzed directives and procedures that were implemented into Wing policy.
Prior to his service, he was director of communications and government affairs for the Cook County Assessor’s Office in Chicago. He also spent several years as a program specialist in the Illinois House of Representative and a campaign manager/field director for the Democratic Party of Illinois.
Port of San Diego completes a draft
Preliminary Health Risk Assessment
As part of the Port of San Diego’s Maritime Clean Air Strategy (MCAS), the Port has completed a Draft Preliminary Health Risk Assessment (HRA) that provides data and information on the health risks associated with marine terminal activities and how the key goals and objectives in the MCAS, some of which are already in the process of being implemented, will help to improve community health.
The HRA will also serve to inform, enhance, and contribute to the broader, cumulative Health Risk Assessment being developed for the Portside Community by the San Diego Air Pollution Control District and California Air Resources Board, and may help the Port identify opportunities to further improve air quality.
For more information and to review the Draft Preliminary HRA and Summary Report, go to portofsandiego.org/mcas.
Oncology startup Lengo Therapeutics
acquired for $250 million
Oncology startup Lengo Therapeutic is being acquired by Massachusett-based Blueprint Medicine for $250 million to push forward an experimental precision treatment for patients with non-small-cell lung cancer. The acquisition is further testament to the strength of San Diego’s life sciences sector as local firms experienced another phenomenal quarter for VC and other investments.
City Office REIT announces closing of sale
of life science portfolio for $576 million
City Office REIT Inc. announced that it has closed the sale of its holdings in the Sorrento Mesa submarket of San Diego for $576 million. The net sale proceeds, after estimated closing and transaction costs, are approximately $548 million.
“We are pleased to announce the closing of our Sorrento Mesa life science portfolio, which locked in a gain on sale of over $425 million,” said James Farrar, the company’s chief executive officer. “We are positioned to redeploy these funds into premier office properties across some of the best markets in the country. We are currently advancing three separate acquisitions in Dallas, Phoenix and Raleigh with an aggregate gross purchase price of approximately $613.5 million.”
Bird Global and Scootaround launch
accessible mobility service in San Diego
Bird Global Inc. a leader in environmentally friendly electric transportation, announced the launch of its accessible mobility program with Scootaround, a global leader in personal transportation solutions, in San Diego. The partnership aims to provide people with disabilities safe, eco-friendly, on-demand mobility solutions.
Visitors to and residents of San Diego with disabilities can now find, reserve and pay for a selection of accessible vehicles using a custom interface located directly in the Bird app. Through Bird’s partnership with Scootaround, high-quality accessible vehicles such as the award-winning WHILL Model Ci2 will be available at special discounted pricing exclusively through the Bird app.
Parma Payne Goodall Alumni Center
at SDSU is back in business
The Parma Payne Goodall Alumni Center at San Diego State University is back in business. As of Dec. 1, alumni and other university visitors may schedule events and arrange entrance to the building that has served most of the past 15 months as a COVID-19 testing site for San Diego County’s Health and Human Services Agency.
The county began operating its free public testing at the site on Sept. 14, 2020. Except for a few days in late July and early August, 2021, when testing needs decreased and fewer sites were open, the county offered its walk-up service Tuesdays through Saturdays most weeks. The on campus county-operated testing site closed on Nov. 30.
The Campanile Foundation and SDSU Alumni staffs have been working on the center’s second floor since the university reopened for the fall 2021 semester. As the building is reopened to the public, campus COVID-19 protocols will be observed and monitored by staff members.
San Diego Ballet Presents:
The Nutcracker, a magical journey
through a young girl’s imagination
San Diego Ballet brings America’s favorite holiday event, The Nutcracker, to dazzling life at the newly renovated Magnolia theater, 210 E. Main St., El Cajon. Performances are at 1 and 5 p.m. on Dec. 19.
The annual production of The Nutcracker features Tchaikovsky’s timeless score and an international cast of more than 100 beautifully costumed dancers. Sugarplum fairies, leaping cossacks and flurries of snowflakes swirl across the stage, in this magical journey through a young girl’s imagination.
to purchase tickets, click here.
