At the request of the City-County Reinvestment Task Force, co-chaired by mayoral candidates Ron Roberts and George Stevens, the merger of Bank of Commerce and U.S. Bancorp has been removed from the fast track, though they won’t derail it for either bank's CRA rating. Mayoral hopeful Pete Davis chairs BofC.

***

    "I’m looking at the ocean now; it’s great," says Al Severson, about as enthusiastically as the soft-spoken banker ever gets. The managing director of California Bank & Trust, his boss Robert Sarver, and a coterie of executives have moved to new 18,000-square-foot headquarters at 11622 El Camino Real, one of Ernest Rady's American Assets projects off I-5 near Del Mar.
    More importantly, CB&T won’t be renamed and will continue to operate as San Diego’s largest and California's fifth largest bank upon the merger of its Utah-based parent Zions Bancorporation and Salt Lake City neighbor First Security Corp. It’s a $5.9 billion merger that will create a $40 billion institution, the nation's 20th largest bank holding company. Sarver will remain on the board of the surviving corporation, to be known as First Security.
    Better still, First Security's 17 California offices will bring $1.2 billion of deposits to be folded into CB&T, mostly in Orange County, where CB&T needed presence, and a little in L.A. First Security has no presence in Northern California, where CB&T already is strong.
    CB&T has vacated about a third of its old headquarters space at 4320 La Jolla Village Drive, but still maintains about 14,500 square feet there for executives running San Diego and Riverside operations.
    "It’s good to get more of us together," says Severson. "We were kind of spread out before." Now the headquarters host finance, human resources, construction, legal, marketing and management staff. A CB&T office being built nearby will serve as its 22nd retail branch in San Diego County.
    California Bank & Trust is less than a year old, the result of merging Grossmont and Sumitomo banks. "Our first half of 1999 is good, slightly ahead of what we had budgeted for both our deposits and earnings, though loans are a little behind budget," says Severson.
    At June 30, CB&T deposits stood at about $5.4 billion, up from $5.34 billion at Dec. 31. Loans stood at about $4.20 billion, up from $4.079 billion. Earnings came to about $14.7 million in the second quarter and $27 million for the half, yielding an ROA of about 1.15 percent, "and we think that will improve during the balance of the year," says Severson.
    Sarver spends most of his work hours now at the new headquarters rather than the Downtown HQ of his Southwest Value Partners, the largest office landlord in San Diego. Despite owning so much of the Central Business District, Sarver and Severson didn’t discuss relocating headquarters to Downtown. They both live in the Del Mar area. "We do have a good presence in Downtown with the two locations," says Severson. (The former Sumitomo office at Fourth and A Street will close, leaving CB&T offices at 525 B Street and in the Emerald Plaza.)
    CB&T will have 66 offices in Southern California Ð 87 statewide Ð when its takes over the First Security branches. FYI, Tom Kato, the former head of Sumitomo Bank who became managing director of CB&T's Northern California offices, is leaving to rejoin Sumitomo Ltd.

***

    CompGeeks Inc., an e-company that sells excess computer inventory and closeouts, is expected to go public this month. Bud Leedom predicts the profitable San Diego company’s offering will be hot and that frustration will greet investors trying to purchase pre-market shares.

***

    Proflowers.com hit its first $1 million sales month in May, and June was looking "terrific," says v.p. Barbara Bry. Bill strauss, formerly v.p. of operations at Intuit, is CEO.

***

    The San Diego Chamber's Economic Research Bureau is officially pegging 1998's inflation rate at 2 percent, higher than the 1.7 percent in 1997 and higher than the nation's 1.6 percent. Why? Housing, accounting for more than two-thirds of the increase.

***

    The Intranet that serves County of San Diego offices will start this month featuring live Real Audio broadcasts of Board of Supervisors meetings and other sessions. Once the computer kinks are worked out, the digital stream will be made available to anyone on the Internet. Essentially the county is piping the audio from its existing cable broadcast.
    The idea came from Barry Fraser, the county's cable franchise administrator. "It is one more way we are trying to make access to services easier," he says. Once this service is up, he’ll start experimenting with Real Media, software that would add video to what’s available on the Web. "It’s a very long range goal," he says.

***

    When Bill Stensrud gave the opening speech at the Evolving Markets in Telecommunications seminar, he praised San Diego as the place to work in the industry. "There has never been a better time to be working in the business of communications and there is no better place to be than San Diego at this great time," said San Diego’s hottest venture capitalist.
    But Stensrud surprised the crowd, and instead of using his 10 minutes to share Enterprise Partners' success stories, he lectured the 300 or so telecom executives present on the need to share their success with the community. He talked in particular about helping poor children attain a better education and protecting the natural amenities that make San Diego such a wonderful place to live. "When you get there, give something back."

***

    Try to guess where you can find an 8-year-old thanking her banker and a wild-eyed performance artist painting Jimi Hendrix right side up (and upside down) at the same time. This year’s Entrepreneur of the Year Awards, with the theme "The Art of Entrepreneurship," was a dramatic extravaganza thanks to artist Denny Dent exhorting the audience to "wake up and change the world." While engaged in his Two Fisted Art Attack, painting portraits of rock stars to blaring music by those same stars (geared to the overwhelmingly 40-something crowd) Dent delivered a feel-good, you-can-do-it-if-you-try message to an enthusiastic audience.
    The showmanship of the Ernst & Young presentation Ð drum rolls, triumphant music, champagne at the winner's table moments after the announcement Ð seems to build each year, but this 13th annual bash was the showiest by far. The pomp is all there but maybe because they're priming the pump. No entrepreneurial winner ever says, "Thank you, I did it all myself and frankly, I’m the greatest." A few might think so, but for form's sake, most claim it was a team effort. Team members include employees, wives, mothers, fathers, God, and yes — for Taylor Crabtree — the 8-year-old Junior Achievement winner, her banker.

***

    Graham Webb International and California Style have set up headquarters in Carlsbad, occupying a new 179,000-square-foot building on Newton Drive. Graham Webb is a manufacturer and marketer of professional hair, bath and body care products. California Style designs and markets casual women's apparel, accessories and personal care products through its mail order catalogs, California Style and Monterey Bay Clothing Co. Both companies were founded by Robert Taylor, best known for launching the Calvin Klein Obsession and Eternity colognes, as well as for creating the Softsoap brand.

***

    Among the speakers at Bud Leedom's San Diego Investment Conference was Robert Stephens, senior v.p. of Mentor Perpetual Advisors, a global investment fund. By putting 20 percent of your investments overseas, Stephens says in a forthright sales pitch, "you reduce volatility and increase your sleep at night quotient."
    Stephens backs up his spiel with logic, numbers and history. The Englishman skewers the blinkered focus of Americans on their country's good fortune, ignoring the depressed economies of "them furriners." History shows that economic miracles such as those today in America and a decade ago in Japan eventually wind up being perceived as bubbles, Stephens says. "The key thing is to detect the moment when a miracle is transitioning into a bubble."
    A decade ago, Stephens says, Japanese stocks amounted to 45 percent of the total value of publicly traded stocks in the world. Today, the number is 10 percent. But Japan has begun recovering. "They finally learned that what they were doing isn’t working and started doing something different."
    As Japan learns what policies win investor approbation, other depressed economies will follow. Other Asian stocks besides those of Japan are cheap, Stephens says, with the total market capitalization of Microsoft and General Electric equaling that of Hong Kong, Singapore, Indonesia, Thailand, the Philippines, Taiwan and Korea combined. "That's fine if you think it’s all going to hell in a handbasket and it’s never going to recover," Stephens says, "but people do learn."

***

    With his Allegis Development Services celebrating its 10th anniversary, Kip Howard has done the right thing and promoted his assistant Cathy Murdock to v.p. She got a raise and also is in line for a window office when the company moves from the old Marston Building on C Street Ð her window now is 12 feet up Ð to Jeremy Cohn's Bridgeworks now under construction at the foot of Fifth Avenue. (Allegis is development manager on the project.) What she didn’t get is a new Porsche, Howard's longtime vehicle of choice. "But I am working on it," she says. "Maybe for Christmas." When Howard bought his new 996, "I did have first right of refusal on the old one," she says.

***

    Mexico watchers now have a new tool to calculate the effects of fluctuations in that nation's currency on the local economy. James Gerber, director of San Diego Dialogue's Economic Research Program, says that a 10 percent decline in the value of the peso would depress taxable sales in San Diego by 1 percent. While 1 percent is not economy-busting, consider the back flips local officials would do to bring in a business that generated the equivalent $66 million in taxable sales. Cross-border shoppers account for $2 billion of total sales each year in San Diego.

***

    Those interested in a full block of Downtown can contact Tim Cowden or Duncan Dodd at Grubb & Ellis Co. The pair are marketing the 60,000 square feet bounded by First Avenue, Front, Beech and Cedar streets.

***

    Among the newest emerging biotech financiers in town is Windamere Venture Partners, a $28 million fund. Partners are Scott Glenn, past CEO of Quidel; Kenneth Widder, founder and former CEO of Molecular Biosystems; and John Burd, chair of LXN Corp. The investment strategy includes having one of the three serve as president, chair or CEO of a funded firm. Windamere has so far invested in four firms: Santarus, focused on gastrointestinal drugs; Optimize, technology for minimally invasive surgery; Prometheus, gastrointestinal disease management; and Metrika, disposable test devices.

***

    Alexander Publishing in San Diego this month releases its first California Bioscience Directory. Publisher Stephen Meyer says the directory will feature 898 companies and the names of more than 4,000 key executives.

***

    Although it seems like it’s been around forever, the Internet really is the same age as that fourth-grader down the street. About as youthful, but old by industry standards, is San Diego’s CERFnet, founded 10 years ago this month with National Science Foundation funds as a project of the San Diego Super- computer Center. Now, two sales later and called AT&T CERFnet, it has a presence in more than 200 cities.
    Initially, the company’s staff of four, led by Pushpendra Mohta, now v.p. of Internet services, selected, in homage to its hometown, SURFnet as the company name. But that name was taken by a European academic organization. So the name became California Education and Research Foundation Network, or CERFnet. Prior to adopting the name, Mohta also contacted Vinton Cerf, an Internet pioneer, to make certain he wouldn't object to the company’s association with his name. After touring the company’s early facilities and studying the initial infrastructure and build-out plans, he said any confusion would be a compliment to him.
    Things certainly have changed. Today CERFnet is working on the next generation of Internet architecture that will handle the full spectrum of IP traffic for business and home customers. "It seems like eons ago that we would flip a coin to see who would answer the phone to assist a researcher in installing a 400-baud modem for connection to the NSFnet," recalls Mohta.

***

    Since bottoming out in 1993, payroll jobs in San Diego increased by 152,800 in the following five years, reports the Chamber's Economic Bulletin.

***

    On July 11, the Sisters of Mercy, the founders of Scripps Mercy Hospital, will receive the Garfield Human Relations Award at a dinner benefiting the American Jewish Committee Institutes of Human Relations in San Diego.
    The Sisters of Mercy began in 1890 when Mother Michael Cummings and another sister opened San Diego’s first hospital in Downtown. Mercy Hospital relocated to Hillcrest 34 years later, and the sisters have remained devoted. Today the 12 Sisters of Mercy are foundation members, volunteers, chaplains and assistants to patients and staff at both Scripps Mercy and the Scripps system.
    The AJC presents the Garfield Award annually to leaders in the community for their humanitarian efforts. It was named for Dorothea and David Garfield, a San Diego couple who gave generously to community groups, the arts, UCSD Medical Center and The Salk Institute. About 250 people are expected to attend the dinner at the Hilton La Jolla Torrey Pines, which begins with a 5 p.m. reception. Tickets cost $250 per person by calling (858) 546-8777.

***

    With its event management certificate program now up and running, USD has turned its attention to finding jobs for those who complete the necessary courses. Toward that end, it has created a job bank where hospitality industry employers on the West Coast are invited to post their positions. Jodi Waterhouse — (619) 260-4231 — is taking the calls. Meanwhile, Patti Roscoe is organizing a hospitality curriculum at SDSU.

***

    Are the shops as popular as the slots? Only a year after its opening, the 35-store Viejas Outlet Center has proven so successful that work has begun on an 85,000-square-foot, 20-store expansion.

***

    Individuals or businesses seeking to appeal their property tax assessments have until Sept. 15, says Thomas Pastuszka, clerk of the county's Assessment Appeals Board.

    Responsible for those 300 or so backlit images on the walls at Lindbergh Field is CWA Inc., winner of a seven-year, $21.7 million contract to lease the advertising space. Sizes of the images range from 43 inches by 62 inches, to 8 feet by 10 feet.

***

    Tom Larwin, the 20-year g.m. of the Metropolitan Transit Development Board, has a new honor to hang on his wall. The border section of the Institute of Transportation Engineers has named him Transportation Professional of the Year.

***

    For the second consecutive year, the Website for Southwestern College — www.swc.cc.ca.us — has earned first place honors from the Community College Public Relations Organization. Students at the school also are redesigning the city of Chula Vista's site.

***

    With the cellular industry facing fierce competition and reduced margins, American Wireless has hired the McQuerter Group to handle a $14.5 million co-op advertising account for its network of 4,300 wholesale customers. The contract revolves around a creative portfolio of "plug-and-play" occasion-driven retail display ads for special days like Father's Day, Christmas and Valentine's Day, when people are apt to buy handsets as gifts.

***

    A new master's degree scholarship program at USIU is based on a student's academic performance. High achievers will receive $500 to $6,000 per year. Garry Hays, president, says the program was started in part to halt a decline in graduate school enrollment that is being felt by schools nationwide. "There is no doubt that the booming economy and employee-friendly job market have an impact on applications to graduate school programs," says Hays.

***

    For businesses that find themselves short on personnel or expertise when it comes to reviewing potential real estate deals, Doug Wilson Companies has introduced a due diligence review service. "Often times deals get held up because a client's staff is not fully equipped to produce and review the due diligence materials in a timely manner," says Wilson. "Our staff does this on almost a daily basis. We are streamlining the process by taking some of the workload off our clients' plates."

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    The nation's sixth-largest commercial insurance and financial services brokerage, USI Insurance Services Corp., has formed Construction Insurance Group in San Diego. Manager of the business is Steven Messer, well known in the local construction industry for his 25 years of service.

***

    Installing a Teflon-coated fabric roof over the 22,000-square-foot outdoor courtyard at the San Diego Aerospace Museum presents three special challenges: a trio of pedestal-mounted aircraft. Ninteman Construction has put Greg Loy in charge of making sure nothing bad happens.

***

    The 18,000-square-foot headquarters for California Bank & Trust in the American Assets complex near Del Mar has been completed by Roel Construction Co. The $1 million project was developed by Space Matters, with space planning by Facility Solutions and interior design by the McCully Group. Roel's project manager was David Burks, assisted by Steve Bastian and Gail Kindred. Subs included Martin & Lewis Drywall, Montbleau & Associates, Sunstate Tile, La Mesa Glass, Wageman Co., Resources Floors, Horizon Painting, Bergelectric, Thermodynamic Plumbing and Helm Corp.

***

    Mission Federal Credit Union is billing its new Terra Nova branch in Chula Vista as a high-tech example of things to come in financing. Among the features at the 3,200-square-foot branch is a "Tech Learning Zone" for home banking demonstrations. The banking stations feature tables that tellers can raise or lower at the touch of a button, allowing members to conduct business standing or sitting. The branch also offers the Cyber Cafe, a place where members are invited to sip free beverages while banking online from individual flat-screen monitors.

    Need something to rent for that special date? How about a luxury fighting vehicle? Hummer Style has set up shop in San Diego, offering its chauffeur services via "Hum-One," a 28-foot-long, red truck-limo that features two television sets, a Sony Play Station, wet bar and GPS navigation. Prices start at $115 per hour, with a two-hour minimum. "Hum-Two" will arrive in September.

***

    The most popular San Diego location for feature film making so far this year is Downtown’s Cortez Hill. San Diego-reared movie man Cameron Crowe — "Fast Times at Ridgemont high" and "Jerry Maguire" — used the neighborhood's sloped streets last month as 1973 vintage background for his new, and still untitled, semi-autobiographical movie about an aspiring rock journalist and a nascent rock band. In March, the same blocks were used to shoot "Blowback," a political action thriller starring James Remar, who most recently appeared in the short-lived prime-time action drama, "Total Security." No release dates have yet been set for either movie.

***

    Summer in Balboa Park is still missing one long-time element from its past — the Cafe del Rey Moro in the refurbished House of Hospitality. The storied bar and restaurant, which hosted countless weddings over the decades, has been closed for a couple of years since renovation of the 1935 Pan-Pacific Expo structure commenced. But a new cafe is coming Ð though it’s a few months overdue. It’s now scheduled to open in about three months, predicts restaurant g.m. Jeff Hornick of the Cohn Group. He says the restaurant will seat 300 people inside and outside for lunch and dinner, seven days a week, with a full bar accommodating 80. A new name, if any, is still undecided.