Daily Business Report-May 5, 2021
Volunteers of America Southwest
accused of double-billing, fraud and conflicts
Volunteers of America Southwest, the San Diego chapter of the powerful national nonprofit, receives millions of dollars each year in government funds to provide housing, mental health services and addiction recovery to veterans, homeless people and other vulnerable citizens.
County officials are demanding that the group pay back roughly $6.5 million that made up a large portion of the funds provided by the county to Volunteers of America Southwest between 2018 and 2020, after auditors uncovered a number of issues with its billing and other financial practices.
In a new investigation, Voice of San Diego’s Will Huntsberry compiles interviews with former employees who blew the whistle on improper practices, lawsuits against the nonprofit and the county audit to paint a picture of an organization where managers “engaged in mismanagement, waste, misuse of public funds, conflicts of interest, potential fraud and double-billed some clients.”
The true extent of the alleged misspending could be far greater than the county audit shows.
“Managers at the charity also purchased tens of thousands of dollars in gift cards, billed for conferences they had no proof of attending, charged for unexplained rental car expenses and used company credit cards for what appeared to be personal trips, according to a former employee and county auditors,” Huntsberry writes.
ILLUSTRATION by Adriana Heldiz, Voice of San Diego
City of Carlsbad extends small business loans
The Carlsbad City Council approved revisions and the extension of terms for its COVID-19 small business loan program, allowing more businesses to access financial assistance when they need it most and to further support loan recipients who have ongoing impacts from state and county health orders.
City Council also considered other financial assistance programs but did not approve any at this time. Instead, staff will be bringing back a discussion about inclusive ways to support Carlsbad nonprofits at the City Council meeting on May 11.
Revisions include:
• Extending the maximum micro-loan term from 18 months to 30 months
• Extending the maximum small business loan term from 30 months to 60 months
• Allowing for one extension of the repayment deferral in a way to help reduce default risk
• Carlsbad businesses can apply for one or both types of loans outlined in the city’s $5 million economic recovery and revitalization initiatives
San Diego life sciences sector produces
record activity in first quarter of 2021
The San Diego life sciences region secured over $1.5 billion in venture capital funding during the first quarter of 2021, reports JLL. This follows the $2 billion secured in the fourth quarter of 2020, which was the largest quarter on record for the San Diego sector. The IPO activity also was strong, with 12 local life sciences companies going public who togethetr raised $777 million.
Nationally, venture capital financings in the life sciences sector totaled nearly $11.7 billion, a notable increase of 35 percent from the prior quarter and 68 percent from the first quarter of 2020. Boston, San Francisco, and San Diego continued to lead the pack, together securing more than $8.3 billion in venture capital nancing and accounting for 72 percent of the total funding.
San Diego Navy bases begin transition
to less restrictive health protection measures
Sailors in San Diego are returning to activities they have not been able to experience for quite some time as Navy installations in San Diego begin to transition to less restrictive health protection measures this week.
The Navy announced April 30 that Naval Base San Diego, Naval Base Point Loma and Naval Base Coronado, which includes all Navy facilities and properties in San Diego County, will move from Health Protection Condition “Charlie” to the less restrictive “Bravo.”
“This reduction in our health protection conditions is great news for our Sailors, our workforce, and our families,” said Rear Admiral Bette Bolivar, commander of Navy Region Southwest. “We haven’t declared victory against COVID-19 yet, but we are making great strides.
San Diego Community Power and RAI Energy
International announce solar energy storage project
San Diego Community Power (SDCP), a nonprofit community choice energy program serving five cities in the San Diego region, entered into a power purchase agreement with an affiliate of RAI Energy International Inc. (RAI Energy), the Silicon Valley-based global renewable energy development company.
The project is located in Imperial County and is an integrated 100 megawatt photovoltaic solar energy project and up to 150 MW/600 MWh of battery energy storage that will provide San Diego Community Power with a 20-year supply of renewable energy, help meet peak summer demand, and support grid reliability.
The first project is called the Vikings Energy Farm. Under the terms of the power purchase agreement, RAI Energy’s Vikings Energy Farm project will help SDCP power the equivalent of 50,000 homes.
Shuttered Venue Operators Grant administered by SBA
The Shuttered Venue Operators Grant (SVOG) program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and amended by the American Rescue Plan Act.
The program includes over $16 billion in grants to shuttered venues, to be administered by SBA’s Office of Disaster Assistance. Eligible applicants may qualify for grants equal to 45 percent of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.
Eligible entities include:
• Live venue operators or promoters
• Theatrical producers
• Live performing arts organization operators
• Museum operators
• Motion picture theater operators (including owners)
• Talent representatives
Developer proposes 268 apartments at El Corazon Park
Oceanside’s City Planning Commission is considering a 12-acre, mixed-use development in El Corazon Park that will include 268 apartments and commercial or retail space on the ground floors of each building.
The plans came suggested by city planning staff and seem to have broad public support. Such developments were incorporated into the El Corazon Park Specific Plan as a way to pay for the development and maintain the property.
The proposed construction company, Sudberry Properties, is a family-owned San Diego company. Sudberry was chosen by the Oceanside City Council in 2011 to be the lead developer of the El Corazon property, including its largest commercial and residential components.
San Diego Automotive Museum receives
donations of $1 million and $330,000
Dorothea Laub, resident of Point Loma and philanthropist, has donated $1 million to the San Diego Automotive Museum in memory of her husband, Richard “Dick” Laub. The gift will be for improvements to the historical building in Balboa Park. In addition, Ray Brock has donated $330,000 to support the Automotive Museum’s capital campaign. Brock’s gift underwrites the cost of the lift installation and Hall of Fame room located upstairs at the museum.
Richard “Dick” Laub, a 36-year Point Loma resident, passed away on May 25, 2013, at age 91,in San Diego. He served in the United States Navy from 1940-1945 and then earned a mechanical engineering degree from Kansas University at Lawrence.
Ray Brock has been an automobile enthusiast his whole life, working first in the automotive repair business, and following this, by rebuilding racing engines. He recently set up a scholarship program at Southwestern College, in support of its Automotive Technology program.
Amy Goodrich joins Mission Fed Credit Union
as VP, director of contact center operations and strategy
Mission Fed Credit Union has appointed Amy Goodrich as VP, director of contact center operations and strategy.
In this new role for the organization, Goodrich is responsible for the needs of Mission Fed’s San Diego-based call center and the remote engagement services the credit union provides its members. Members rely on the contact center for new accounts and loans, a wide range of financial transactions and inquiries, and assistance with online and mobile banking services.
Goodrich is a career credit union professional with more than 30 years’ experience in operations and software services. She began her career serving USA Federal Credit Union as a teller in Germany, the birthplace of the credit union movement. After returning to the U.S., Goodrich continued to pursue her passion at USE and Cal Coast Credit unions, where she managed call centers, a branch, member experience, and other operations leadership positions in support of employee engagement and member service.
For the last 11 years, Goodrich was with Symitar, the largest credit union core processing provider, as director of professional services.
Tower 16 Capital Partners sells apartments for $16.5 million
Encinitas-based Tower 16 Capital Partners has sold Hillside Village Apartments, an 80-unit multifamily project in San Bernardino, for $16.5 million. The property was purchased in January 2019 for $11 million in an off-market transaction.
Hillside Village features one- and two-bedroom apartments with covered parking and private balconies or patios, a pool, spa, clubhouse and laundry facilities.
Despite Real estate brokers Ed Rosen, John Chu and Tyler Sinks of Berkadia San Diego represented Tower 16 on the sale.
East County college district wins statewide public relations awards
The Grossmont-Cuyamaca Community College District’s marketing efforts have garnered statewide recognition. Anne Krueger, district communications and public information director, has been presented with the All Pro Award by the Community College Public Relations Organization, an organization that promotes marketing excellence among California’s 116 community colleges.
The All Pro award is a lifetime achievement award honoring the best in the business. Krueger, an 11-year district administrator, has been an active member of CCPRO, including two years as president and two years as past president.
The college district’s Marketing and Communications Office also on Friday won three statewide silver awards for its 2019-2020 annual report; a news release about ways the district responded to the community’s COVID-related needs; and its Remote Report online newsletter series.
