San Diego Venture Capital Investment Dips Big
Super Committee’s Top 50
Balloons On Parade Downtown
Turning The NTC Into An Arts Hub
Peddling Cell Phones Vs. Analyzing Communications
Rare Collection Of Goya Prints Given To USD
SAIC To Advise On How To Keep The Lights On For 30 Years
Online Crime Data Nets Sun Award For Pamela Scanlon
SEDC, James Smith Break Ground On Valencia Business Park

For those nervous about San Diego’s economic fate, consider this cushion: military-related direct and indirect expenditures of $17.4 billion are responsible for more than 15 percent of the gross regional product and 201,200 jobs. And those figures are growing. The latest issue of the San Diego Chamber’s Economic Bulletin notes that Department of Defense prime procurement contracts awarded to San Diego businesses grew 17.8 percent to $2.83 billion last year. When the smaller contracts and classified deals are added, the total is $3.57 billion for 11,800 contracts.

The Space and Naval Warfare Systems Command, tucked into the former missile factories on Pacific Highway, employs 4,372 locals. Its annual payroll is $303 million. The average employee makes $69,000. Last year SPAWAR awarded $1.5 billion in contracts to San Diego-based businesses.

SAIC managed $1.1 billion in defense work in 2000. It was hardly alone. The long list includes NASSCO, $437 million; General Atomics, $133 million; and Gateway, $26 million.

San Diego is the largest military complex in the nation; perhaps the world, the Chamber says. The $3.7 billion of military salaries paid in 2000 salaries was $1.4 billion more than paid in the No. 2 region, Norfolk City, Va. The county is home to 59,096 military retirees — 38,000 of them from the Navy — who receive a steady $1.05 billion in government checks annually. Military construction hit $465 million in 2000.

As the Chamber says: “San Diego’s military associations are expected to not only continue to thrive, but remain a vital part of the region’s economic fortunes and future.”

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Interest-free loans from automotive manufacturers may have triggered a boom in new-car buying, but they don’t seem to be bothering local lenders. Cora Kloster at San Diego National Bank reports no effect on lending volumes and thinks this may be partly because not all vehicles or customers qualify for the zero-interest deals.

At Southwest Community Bank in Carlsbad, Steven Ahlquist hasn’t seen much change either, adding that car dealers have offered lower rates than banks for some time anyway. North Island Financial Credit Union’s Karen Smith has noticed a fall in new auto loans but says the effect has been muted because 80 percent of the company’s business involves used vehicles.

The big banks don’t seem too concerned either at this sudden generosity on the part of car manufacturers. Bank of America v.p. Ken Preston says auto makers drop their rates from time to time but it’s only a temporary tactic. While this may have some short-term impact, he says the bank’s interest rates and business strategies are geared to the longer term and, in that context,•passing car makers’ deals have little lasting effect.

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Jane Applegate's Back on Track America rolls into San Diego Jan. 18 with a series of seminars and events to educate and encourage small business people. Sponsors include ING-Aetna Financial Services, Merrill Lynch Business Financial Services, Wyndham Hotels, Pilot Pen Corp., MasterCard, SCORE, the SBA, Amtrak, Entrepreneur Magazine and the San Diego Metropolitan. Additional sponsorships are available by contacting Gary Shaw at (619) 233-4060, Ext. 308. Presented at the Wyndham Emerald Plaza, themes include money management, legalities, insurance, taxation, marketing, technology, and, God forbid, starting over. Applegate is a former San Diego business journalist, now president of Small Business TV and sbtv.com in New York; sbtv.com is loaded with Back on Track America info.

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With its recent investment of $1.34 million into Barone Galasso & Associates’ 288-room Island Village Apartments project Downtown at 12th Avenue and Market Street, CCDC has this year earmarked $16.8 million for 665 homes for people with low or moderate incomes. Another $24 million in projects is under consideration.

Of the 5,210 homes built via redevelopment, 1,973 are for those of low or moderate incomes. Of the 9,000 homes in the redevelopment pipeline, about 30 percent will be for people in restricted income ranges.

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Shidler Group, in partnership with Angelo, Gordon & Co., has paid $95 million for the Waikiki Galleria Building, a 16-story, 160,384-square-foot Class A retail and office building Downtown. The seller was Nippon Shinpan, a major Japanese credit card company.

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Tucker Sadler Noble Castro Architects has won a national competition to design the new $35 million, 158,000-square-foot Helen Woodward Animal Center in Rancho Santa Fe. “The design will embody the dignity and tireless efforts of the organization’s founder, management, staff and supporters,” says Robert L. Noble, CEO and design principal for Tucker Sadler.

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Interviews with Capt. Bruce Linder, Larry Himmel, John Trombold, Bob Skinner and Gene Littler are featured this month on the “Heart of San Diego,” the Fred Lewis-hosted television show that airs in prime time on ITV. The full schedule is on Page 45.

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San Diego’s USO is getting a 100-film library from Blockbuster as part of Dallas-based Blockbuster’s decision to donate videos to the troops fighting the war on terrorism. Blockbuster kicked off the initiative by donating more than 3,600 videos to 30 of the USO’s overseas centers, as well as DVD players, DVDs and VHS movies to six of its stateside centers.

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TransWorld Surf, a game developed by Carlsbad-based Angel Studios, was released nationwide by the L.A. office of Infogames Inc. as part of the release of Microsoft’s Xbox video game system. The highly anticipated surfing action game — developed with Oceanside’s TransWorld Surf magazine — is one of the first to be launched under the reinvented Atari brand. Players of the $49.95 game assume the identity of one of 13 top-ranked surfers like Shane Dorian, Andy Irons, Taj Burrow and many more. They then compete in a nine-location tour sponsored by TransWorld Surf magazine. At each location, surfers must successfully complete a basic photo shoot before moving on to the competition. Surfers also face goal challenges at photo shoots, such as freeing dolphins from fishing nets or completing difficult combination moves. Careless surfers will find themselves pursued by hungry sharks if they roam too far past a wave.

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The energy crisis has been good for Vista-based Solatube International Inc. The California Energy Commission has taken notice of how well the company’s tubular daylight lighting system works and has put up $1 million for rebates. Businesses that install a Solatube can get a rebate of $56 per skylight. For more information, call (888) 476-5288, Ext. 398, or click on www.solatube.com.

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The World Trade Center San Diego and the Japan Society of San Diego and Tijuana made it back from Tokyo with Hugh Constant concluding, “success.” The Unified Port District and LH Systems sponsored the mission of 25 San Diegans. Michael Vandenbergh and Chuck Labitan of the port met with shippers. Martha Longenecker and Rob Sidner of the Mingei Museum worked on their latest library addition. Stewart Walker of LH Systems organized presentations from the Development Bank of Japan and Japan Development Corp. Randall Phillips, honorary Japanese consul general in San Diego, met with the Yokohama San Diego Friendship Society, observing 45 years as sister cities in 2002. Constant extolled San Diego’s trade opportunities; Robert Nadalin of Larrabee & Associates translated. WTC San Diego Chairman Richard Ledford hosted a lunch on the 50th floor of the WTC Osaka. Also on the mission were Alan Foster, Michael Inoue, John Stoessinger, Frank Lazarus, Janis Lasser, Bronwyn Billings, Heather Rosing, and Manuel and Beatrice Bennett. Motoharu Iue, v.p. of Sanyo, former head of Sanyo North America and a long-time San Diegan, hosted the mission to dinner. Kate Leonard offered a tour of Port Island. Rodney Lanthorne arranged a tour of Kyocera. Sandra Ojiri, president of 3Ds Travel, handled all the travel arrangements. Some of the San Diegans attended the Kyoto Prizes ceremony, also graced by Prince and Princess Takamado. “This was a fabulous finish to a very worthwhile and productive mission to Japan,” says Constant.

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If the perfect gift for someone on your holiday shopping list is a pinhole video camera the size of a quarter or a 300,000-volt stun gun, stop by the new Spy and Security Store in the Crossroads Center at 7420 Clairemont Mesa Blvd. Newly opened, the store is the second in the county for owner Mike Sepiol. The first was in San Marcos. Expect to pay $99 to $400 for the best gadgets.

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Gad Shaanan Design, which is designing a new phone line for Kyocera, has opened its second San Diego office, this one at 6048 Cornerstone Court W. Suite E2. Based in Montreal, the 20-year-old Gad Shaanan is Canada’s largest industrial design firm. The new office will be used to target San Diego and Orange counties’ biotech, consumer electronic, leisure and golf industries.

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Home Investment & Loan Association is celebrating its 20th birthday with capital of $9.5 million and total assets of $123.7 million. Since its inception in 1981, when it was called Home Thrift and Loan Association, the bank has never had an unprofitable year. The bank is headquartered in Pacific Beach with a branch office in Oceanside.

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Discovery at Cortez Hill is one of eight new for-sale and rental projects under construction in an area being developed to provide a thriving residential climate for people who want to be close to Downtown. Near the remodeled El Cortez Hotel, this 22-story, 199-unit tower is due for completion in June.

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San Diego Latino activist and civil rights attorney Maurice Jourdane has been recognized by California Rural Legal Assistance for his work empowering farm workers and their families. The organization, which is celebrating its 35th anniversary this year, says it recognizes Jourdane because his legal work contributed so much to the Latino community. The CRLA’s annual fund-raiser was held in the San Diego home of Thomas and Lorna Saiz. Thomas Saiz is the managing partner of Calderon Jaham & Osborn Certified Public Accountants and treasurer of the Hispanic Chamber.

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Pirtek Miramar, a franchise of hydraulic hose company Pirtek USA, has been purchased by Dave Haug for an undisclosed amount. Haug also owns a Pirtek Center in Minneapolis. “The reason I was able to invest in Pirtek Miramar is because of general manager Gil Moyers,” says Haug. “Gil is a local resident and has been with this Pirtek Center since it was first opened in 1998. He worked his way up from the bottom, and knows every facet of the operation. Since I’m only here one week out of four, Gil basically runs the company. I have complete faith in him and so does the rest of the Pirtek team.”

The 3,000-square-foot Pirtek Center in Miramar employs eight people and operates five vans. In the next 12 months, Haug plans to add at least two more vans and possibly open another center in the area.

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The Naval Medical Center of San Diego is one of three hospitals nationwide to be certified by EPA Administrator Christie Whitman to participate in a new Energy Star rating program. “For the first time, hospitals can now compare their energy performance to others nationwide and are eligible to earn and display the Energy Star for highest achievements in adopting energy efficient products and practices,” says Whitman. “Energy Star is a voluntary program that makes it easy for consumers and businesses to improve energy efficiency, save money, and help protect the environment by providing energy efficiency information for everything from new appliances to new homes. Allowing hospitals to participate in this program will allow us to improve upon our success and have an enormous impact on our environment.”

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Canon Business Solutions-West Inc., a subsidiary of Canon U.S.A. Inc., is expanding into San Diego with an office at 9330 Scranton Road. “We are excited about expanding our capability and we look forward to providing Canon’s world class document management solutions to the San Diego area,” says William Joseph, executive v.p., Canon Business Solutions-West Inc. “We are committed to offering this marketplace great solutions and a solid infrastructure to support our customers’ evolving needs to the fullest.” Nigel Thorp, a veteran of the office equipment business, is the branch manager.

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The Centre City Development Corp. is expected to vote early this month to step in and pay “not more than $21 million” to purchase surface lots adjacent to the ballpark project in the event the Port District is unable to buy the property.

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In this Internet age, fishing fans can hook on www.sandiego.gov/water/recreation/fish.shtml to find out what’s biting at city lakes.

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Pioneer Speakers and NYK Distributions Systems Americas Inc. have leased 52,678 square feet of space in Otay Mesa’s Siempre Viva Business Park. Pioneer will use the space for corporate offices, an acoustical lab, listening room and light assembly. NYK will run the warehouse operation. The companies move in next month.

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The city of Chula Vista is partnering with the San Diego Contracting Opportunities Center to provide weekly one-on-one consulting services at the South County Career Center. The service is available to small, minority or women-owned businesses interested in competing for government procurement contracts. Chula Vista has invested $10,000 in the effort. Luz Velasco — (619) 285-7020 — is booking the meetings.

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If you tell Tom Di Zinno his work is a bit “cheesy,” he’ll likely take it as a compliment. That’s because Di Zinno Thompson Solutions is handling local promotions, media buys and p.r. for Precious Cheese.

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Old Town Trolley Tours of San Diego has begun renovation work on two properties — the Casa de Aguirre and the St. Joseph’s Rectory/Convent — just outside the Old Town state park. The project, Old Town Market, will feature a free museum, retail stores, food service and space for special events and entertainment. T.B. Pennik & Sons (Mark Pennik) is the contractor and Ferris, Johnson & Associates (Paul Johnson) the architect.

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Just as it has for nearly 40 years, the Fifth Avenue Financial Centre, 5880 Fifth Ave., has been lit up for the holidays again this year — but with a twist. This year’s traditional holiday lights were exchanged for red, white and blue to make a patriotic statement. Already aglow, the building annually lights up on Thanksgiving.

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Looking for holiday activity? A few keystrokes will get you to the Downtown Communications Council’s online calendar of holiday events in Centre City. Visit www.downtownsdevents.com for a rundown of places to go, dates and times. The Communications Council is a collaborative of Downtown businesses, agencies and organizations, reports Derek Danziger, communications manager for the Centre City Development Corp. A link to the calendar from other organizations’ Web sites is a logo of the Downtown skyline wrapped in holiday ribbon. The long-term goal is to create a year-round calendar. For information, call the Downtown San Diego Partnership at (619) 234-0201.

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The inaugural Kyoto Laureate Symposium, a combined effort of the University of San Diego’s Joan B. Kroc Institute for Peace and Justice and the Inamori Foundation of Kyoto, Japan, is scheduled Feb. 6 to 8 at USD. This three-day event celebrates the recipients of the Kyoto Prizes, Japan’s highest private awards for lifetime achievement in advanced technology, basic science, and arts and philosophy. This year’s recipients in advanced technology are physicist Zhores Ivanovich Alferov, director, Ioffe Institute of Physics and Technology; physicist Izuo Hayashi, director emeritus, Optoelectronics Technology Research Laboratory; and physical chemist Morton B. Panish, a member of the U.S. National Academies of Science and Engineering. The basic sciences honoree is John Maynard Smith, evolutionary biologist and professor emeritus, University of Sussex; and the arts and philosophy award recipient is Gyorgy Ligeti, composer, professor, Hamburg University. For information on the symposium, call Jodi Waterhouse at USD, (619) 260-4231.

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EDmin.com Inc. has launched a Web-based resource that allows school administrators to track education expenditures aligned to standards-based student achievement. This new Return on Investment Analysis tool is an integrated software application enabling educators to create easy-to-understand financial reports that compare district expenditures with student performance.

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With Mikel Haas now the county’s official new director of Animal Control, Sally McPherson now officially has his old job as Registrar of Voters. A new shelter on the horizon and an active campaign under way to raise money for the construction of a new North County shelter will keep Haas — one of the most likable and talented people in local government — busy.

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Could television really be a factor in the short attention spans of today’s children? Solana Beach psychologist Mark Cooper thinks so and has created, along with Emmy-winning composer Carl Johnson, “Movies in My Mind,” an audio effort to foster children’s listening and imagination skills. The series, which consists of two 30-minute stories, “Captain Cook—The Voyage of the Endeavor” and “Amelia Earhart—A Flight into History,” are designed for audiences 3-years-old and up and already have gained national attention from several parenting organizations. It is available in CD and cassette tape format. Click on www.moviesinmymind.com for more.

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Five percent of the Santas surveyed at 130 shopping malls by General Growth Properties say the San Diego Chargers are their favorite sports team. (The survey was conducted when missed field goals were not an issue.)

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For the eighth consecutive year, production income from San Diego’s agriculture industry set a record, hitting $1.25 billion, up 3.3 percent from 1999. In the latest edition of the Economic Bulletin, the San Diego Chamber says agriculture accounted for 1.1 percent of the $113.2 billion gross regional product. The most valuable crop per acre? Mushrooms, which yield $690,276 per acre. The most valuable crop overall was indoor flowering and foliage plants, worth $310 million. Ornamental trees and shrubs were second at $170 million followed by avocados at $150 million.