Daily Business Report: Nov. 22, 2024
No raise for California’s minimum wage workers. Voters reject Prop. 32
By Jeanne Kuang | CalMatters
A ballot proposition to raise California’s minimum wage to $18 an hour has been rejected by voters, even as the state continues to grapple with its high cost of living. The Associated Press called the race Tuesday after two weeks of ballot counting. Nearly 51% of voters said “no” in a rejection that opponents on Monday called “historic.”
Proposition 32 would have raised the state minimum wage to $17 for the rest of the year, and then $18 in January for large employers. Smaller employers — those with 25 or fewer workers — would have been required to pay at least $17 in January and at least $18 in January 2026.
The state’s minimum wage is already tied to inflation: The lowest-paid workers will still get a 50-cent raise to $16.50 in January. For a full-time worker, that’s a little more than $34,000 a year.
The measure would have given California the highest state minimum wage in the nation. Supporters estimated it could give raises to about two million Californians who work in such industries as warehousing, restaurants, agriculture and childcare.
But with a quieter than usual campaign in support and widespread voter frustration over inflation this election, the measure was doomed after business groups pushed back by claiming the wage hike would drive restaurant and grocery price increases. Prop. 32’s fate could signal how liberal California’s electorate remains on economic policies as the cost of living continues rising.
“Voters know who pays for wage mandates like Proposition 32 — they do,” Jot Condie, president of the California Restaurant Association, said in a statement. “They’re sick of the high cost of living and they are clearly associating California’s laws and mandates as significant contributors.”
While the state has boosted pay for hundreds of thousands of low-wage workers in recent years and likely voters indicated last year that they support raising the state minimum wage to $18, recent polling showed Californians split on the measure.
Supporters said they would keep trying to raise the wage.
“We’ll continue until every California worker earns enough to live and thrive,” proponent Joe Sanberg, a startup investor and anti-poverty advocate, said in a statement. “While today’s outcome was not what we expected, we are hopeful for the work ahead.”
But labor unions, which in 2016 pushed heavily for the increases that led the state to a $15 minimum wage in 2022, are taking a different approach.
Fast food workers cheer before Gov. Gavin Newsom signs legislation boosting wages to $20 an hour, starting in April, during a press conference at SEIU Local 721 in Los Angeles on Sept. 28, 2023. (Photo by Alisha Jucevic for CalMatters)
Western Alliance Bank takes back
600 B St. office tower downtown
Western Alliance Bank has taken back the 24-story office building at 600 B St. in downtown San Diego following a foreclosure process. The property was purchased for $44.4 million in a public auction.
The 359,278-square-foot tower fills an entire city block between Sixth and Seventh avenues.
Co-working company kjWeWork is the building’s largest tenant, with 100,000 square feet.
WS Display leases 125,261 square feet
at Nordika Industrial Park in Tijuana
Kidder Mathews announced the lease of 125,261 square feet at Nordika Industrial Park located at Lazaro Cardenas, 22644 in Tijuana, Mexico. The property was leased to WS Display, a leading provider of trade show displays, banner stands, and custom oversized printing. Todd Davis of Kidder Mathews and Arturo Valdez of NAI Mexico represented WS Display in the transaction.
The newly constructed industrial complex is situated in central Tijuana, less than 90 minutes from WS Display’s headquarters in Carlsbad. The strategic location offers easy access to a skilled labor pool and significant cost advantages. Occupancy costs at the property are approximately 40% lower than in the United States, with labor costs also substantially reduced. This positions the company to be more competitive on pricing, while maintaining high standards for quality control and response times. The property’s location in Tijuana offers tax advantages by importing raw materials to be delivered in Mexico.
Mayor signs executive order
promoting city hiring of veterans
San Diego Mayor Todd Gloria signed an executive order further committing the city to hiring transitioning service members, veterans and military spouses. Gloria signed the order at the city’s annual appreciation breakfast for veteran employees.
The executive order comes on the heels of the City of San Diego recently being approved as a U.S. Department of Defense SkillBridge provider, a program that creates a pathway for transitioning service members to enter city employment.
Through SkillBridge, active-duty service members in their final six months can gain hands-on experience with civilian employers via internships, apprenticeships and job training. The program helps prepare service members for civilian employment by providing practical skills, industry insights and essential networking opportunities.
Sports San Diego and GOVX announce return
of Hometown Heroes at DIRECTV Holiday Bowl
Sports San Diego and GOVX announced the extension of their Official Partnership, including the return of the annual Hometown Heroes program at the DIRECTV Holiday Bowl. GOVX, the online shopping platform exclusively for current and former U.S. military service members, first responders, emergency medical professionals, and other government personnel, will be featured as the title sponsor of the GOVX Pregame Show at the DIRECTV Holiday Bowl, which includes the national anthem, a Navy Parachute Team performance, American flag unfurling, and Hometown Heroes military tribute.
Additionally, the Hometown Heroes initiative will provide tickets and meals for 250 San Diego-based active-duty military servicemembers for the DIRECTV Holiday Bowl
The partnership also extends to the game-day Port of San Diego Holiday Bowl Parade presented by Kaiser Permanente, where GOVX will serve as a Division Sponsor in alignment with parade entries from the San Diego military community.
Rancho San Diego one of the 100 most expensive ZIP codes in the U.S.
Rancho San Diego was ranked among the top 100 most expensive ZIP codes in the country, according to PropertyShark. Rancho Santa Fe reached a record $4.55 million median sale price and grabbed its highest position yet among the country’s 100 most expensive zip codes, landing at #9. For comparison, the exclusive enclave stood at $2.27 million just six years ago.
Key takeaways:
- San Diego Countysecured six of the most expensive ZIP codes in the country, one more entry compared to last year.
- All ZIP codes in San Diego Countyhit median sale price peaksin 2024, except for La Jolla’s 92037 which peaked two years ago.
- 5 out of 6 ZIP sips in San Diego Countysurpassed $2 million, while 92130 came in just $40,000 below.
- Atherton’s 94027 claims the top position in the country at$7.9 million, despite sliding from last year’s$8.3 million.
As a quick recap, PropertyShark again analyzed closed homes sales across the U.S. to identify the most exclusive areas for homeowners and found that prices increased in 67% of the nation’s most exclusive ZIP codes. Closer to home, San Diego County marked its third consecutive year among the country’s top 10 priciest zips, with Rancho Santa Fe’s 92067. With a median sale price of $4.55 million, Rancho Santa Fe was one of just 15 ZIP codes in the country to surpass $4 million. Meanwhile, the city of San Diego also returned to the top 100 with ZIP 92130, bringing San Diego County’s presence in the ranking to a record six entries.
For the full picture of country’s most expensive zip codes, including local highlights and regional trends, explore our full report: https://www.propertyshark.com/Real-Estate-Reports/most-expensive-zip-codes-in-the-us/.
San Diego Voters likely reject sales tax hike as Measure E trails in early results
By San Diego Taxpayers Association
Early results show San Diego voters rejecting Measure E, a proposal to raise the city’s sales tax by 1% starting in April 2025. The measure aimed to generate an estimated $400 million annually for the city’s general fund, addressing a $200 million budget deficit and a $9.25 billion infrastructure pileup over five years.
Measure E sought to raise San Diego’s sales tax to 8.75%, matching higher rates in neighboring cities like Del Mar and National City. Proponents, including Mayor Todd Gloria, emphasized the need for revenue to repair deteriorating infrastructure and maintain public assets.
Opponents highlighted concerns about increased costs for residents. Without additional funds, city officials warned of potential budget cuts to libraries, equity programs, and other services. The measure’s result will heavily influence future budgets, with a five-year financial plan expected in December.
San Diego Rescue Mission forms Advisory Board of business leaders
By San Diego Taxpayers Association
Forms Advisory Board of Business Leaders Amid Expansion Efforts
The San Diego Rescue Mission has established a new advisory board of local business leaders to support its faith-based approach to addressing homelessness. The board, separate from the nonprofit’s board of directors, includes representatives from companies like Corky McMillin Companies, Hoehn Motors, and Sudberry Properties. This initiative reflects increasing corporate involvement in tackling the homelessness crisis.
Rescue Mission President Donnie Dee emphasized that homelessness is a community issue, not solely a government responsibility. The nonprofit, primarily funded by private donors, is expanding beyond its downtown San Diego facility with new programs in Oceanside, National City, and potential sites in East County.
However, some advisory board members have drawn criticism. For example, Scott McMillin, part of the board, opposes a city proposal for a homeless shelter near the airport, citing legal and business concerns. The Rescue Mission continues to focus on solutions and advocacy outside government policies.
Surglogs raises new funding
Coronado-based Surglogs, the nation’s leading regulatory and accreditation platform for healthcare facilities, is pleased to announce the successful close of a new investment round, supported by its existing investors.
Surglogs is making compliance stress-free with the healthcare industry’s first and only AI-powered solution that automates policy and procedure creation, links them directly to accreditation standards, and assigns tasks and workflows across the organization. By providing clear guidelines, the tool keeps healthcare staff aware of any gaps they need to address, allowing them to focus more on patient care and less on administrative tasks.
All existing investors, including 8VC, Open Ocean, and Credo Ventures, have increased their stakes in this funding round. This capital infusion will be directed toward strengthening the team, expanding AI capabilities, and enhancing research and development efforts.
North Island Credit Union Foundation sets teacher grants
Conducting a geometry-based city planning project, creating a lending library, expanding a school garden and starting a school community mosaic project are just some of the school projects receiving funding from North Island Credit Union Foundation through its Fall 2024 Teacher Grant program.
As part of its commitment to help educators create innovative learning opportunities for their students, the Foundation has provided 10 grants of $500each to underwrite class projects in San Diego and Riverside counties. The grants will fund a diverse range of programs illustrating the creativity and commitment teachers bring to their classrooms and communities.
