January 18, 2001

The viability of cargo operations, and the purported economic benefits and jobs that are supposed to come from the proposed expansion of Brown Field into an international cargo airport are significantly less than the project’s backers have promised, reports studies released yesterday by the San Diego County Taxpayers Association.

“The studies found that overall the expected economic benefit must be reduced by approximately 50 percent, from a projected $751 million to a more realistic $376 million,” says Mary Ball, SDCTA president.

SDCTA commissioned Rea and Parker Research Inc. and The London Group Realty Advisors Inc. (with Crossborder Business Associates) to conduct the studies for the association.

As part of the research, discussions were conducted with project proponents and opponents, as well as in depth interviews with business, aviation and cargo operators on both sides of the border.

In a separate analysis overseen by SDCTA executive director Scott Barnett, the association indicated that in the event of a potential default on the public agency bonds being issued to finance the expansion, the city would likely be under pressure to bail out the project’s backers.

“It is our belief that there would be significant efforts by the city of San Diego to prevent default, and the resulting negative perception that could result in the potential downgrading on the city of San Diego’s bond rating,” says Barnett, referring to SDCTA’s report.

The San Diego City Council has been considering the expansion of Brown Field into a project called the San Diego Air Commerce Center for more than four years. The proposal would take a general aviation airport and turn it into a large air cargo project. The association also found that the business model for the San Diego Air Commerce Center is flawed, relies on unsupported assumptions, and that air cargo demand may be better served by existing airports.

In other findings, the studies found that:

• Instead of the 11,700 jobs projected, a best-case scenario would produce only 7,500 jobs and only 700 would be airport-related. Wages, the study said, would also be significantly lower than promised by the airport’s backers.
• In contrast to the assertions by the developer, it appears that one-third of a billion dollars for the Brown Field project would be publicly funded financing, subsidies and grants.
• The city has granted the project developers significant benefits in this transaction that are typically not available to other Otay Mesa developers, and that these city-backed benefits total $16.45 million.
• The project developer has been excused from significant improvements, including freeway interchanges, which other developers recently have been required to provide. (e.g. PacificHighlands and 4S Ranch projects.)
• SDACC is not using the city-backed preferential advantages to reduce rents, but is planning on charging even higher rents a double benefit to the SDACC group.

The market assessment portion of the study, developed by London Group Realty Advisors, Inc., (with Crossborder Business Associates) found that:

• Proponents for the San Diego Air Commerce Center rely on overly optimistic and unlikely annual growth projections that are significantly above regional historic, national, and industry forecasts.
• Airport officials throughout Southern California and in Tijuana are already planning or in the process of expanding air cargo capacity to meet the region's needs, increasing competition for San Diego’s air cargo.
• San Diego’s proximity to large, West Coast markets, and the relative high cost for air cargo, result in a local demand for shipping by truck, not by plane.
• Adding local air cargo capacity may be unnecessary in the immediate future, although the issue of air cargo should be elevated in regional discussions about San Diego’s future airport needs.
• Expecting significant air cargo shipments at Brown Field related to Baja California's maquiladora industry is uncertain and risky, especially given the likely expansion of air cargo operations at neighboring Rodriguez Field in Tijuana.

The study also recommends exploring strategic partnerships with airports in Southern California or Tijuana, as well as reconsidering other development options at Brown Field.

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Qualcomm Inc. has made a $25 million investment in ChipPAC Inc., one of the world's largest and most diversified providers of semiconductor test and packaging services, and an agreement for supply of assembly and test services for Qualcomm CDMA Technologies' Mobile Station Modem integrated circuits.

This investment, which was finalized in August, combined with ChipPAC's recent announcement of direct sales in China, allows QCT to assemble and test QCT chips in China for future Chinese customers, and guarantees capacity availability for semiconductor production in China.

"China represents one of the fastest growing and most lucrative semiconductor markets in the world," says Dennis McKenna, CEO and president of ChipPAC. "Our relationship with Qualcomm will enhance our growth and expansion into this strategic market and lay the groundwork for offering Chinese consumers advanced CDMA wireless products."

"ChipPAC demonstrates the leadership and consistent record of performance that QCT looks for in developing working partnerships in the semiconductor industry," says Don Schrock, president of Qualcomm CDMA Technologies. "ChipPAC's ability to serve local customers and supply chains in China, and provide back-end assembly and test facilities, complements QCT's CDMA integrated circuit and system software expertise, and will enhance the productivity of both companies."

Santa Clara-based ChipPAC is one of the largest independent suppliers of high-end test and packaging solutions, including ball grid array packages, the industry's most advanced, mass-produced semiconductor package.

The company also provides advanced packaging services that address the needs of semiconductors used in wireless and wire line communications, including flip-chip, chip-scale and stacked die technologies.

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In other Qualcomm news, the company has established a group dedicated to the heavy equipment asset tracking market.

Based in Bethesda, Md., this new team will provide the industry with the first comprehensive construction fleet management solution by combining feature rich Internet-based software and rugged mobile hardware with Qualcomm's service fleet products.

Qualcomm will offer heavy equipment providers and operators reliable wireless tracking and equipment monitoring, as well as integrated vehicle fleet management solutions.

Benefits include inventory management, enhanced security, improved billing and the ability to offer predictive, proactive, preventive maintenance.

Qualcomm plans to leverage existing products and core competencies that include global distribution channels, premier customer care, best-in-class data network operations and web-based applications.

"We are excited to create a great team of engineering talent and business development expertise to help propel our efforts in the construction equipment market," says Chris Wolfe, senior v.p. and general manager, Qualcomm Wireless Business Solutions. "This team will augment and complement our current initiatives, allowing us to expedite delivery of innovative solutions to heavy equipment providers and operators worldwide."

Qualcomm adds to existing staff the expertise of nine new business development, sales and mobile hardware engineering professionals that have been developing satellite-based asset tracking products for the heavy equipment industry for several years.

The new team will be led by Tim Lewis, former v.p. and g.m. of Tracsat.

"We see great opportunities for the heavy equipment industry in combining the strength of this new team with Qualcomm's industry-leading mobile communications solutions," Tim Lewis says. "Heavy equipment providers and operators demand reliable service and Qualcomm will be the single-source provider for all their communication needs."

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Webvan Group Inc. has launched webvan.com in the greater San Diego area.

San Diego is the first HomeGrocer.com market to transition to the Webvan brand and a common technology platform, allowing customers to shop on webvan.com. Webvan merged with HomeGrocer in September.

Webvan's corporate headquarters are located in Foster City.

The company also stated that beginning today, HomeGrocer's Dallas/Ft. Worth, Los Angeles, Orange County, CA, Portland, OR, and Seattle markets will operate under the Webvan brand.

The Internet store in these markets will display the Webvan brand name, colors and logo; the couriers will wear Webvan uniforms, and the company’s delivery vans will soon bear the Webvan brand name and logo.

In the coming months these former HomeGrocer markets will migrate to a common technology platform, completing the technology integration of all 10 of the company’s markets.

"This is a very important milestone for Webvan, as it significantly expands the reach of webvan.com and the Webvan brand," says George T. Shaheen, chairman and CEO of Webvan Group. "San Diegans are accustomed to the convenience, high-level of customer service, and high-quality products of HomeGrocer.com. Webvan will uphold and enhance these standards with the introduction of broader new product categories, more delivery time options, and greater cost savings. We look forward to being a part of the San Diego community and offering consumers a service second to none."

Some of the added benefits San Diego consumers will receive with the Webvan service, include:

• Faster delivery — Now delivery windows will be 60 minutes instead of 90 minutes. That means more delivery options and less waiting.
• Lower delivery fees — Delivery on orders of $75 or less is now only $4.95 instead of $9.95.
• More delivery windows in some service areas — Customers in certain areas will now have additional delivery windows to choose from for even greater convenience.
• An expanded selection — New shopping categories such as value sizes, houseware, a kid's store, consumer electronics, pet supplies, and more.
• Easier returns — Customers can now hand items right back to their driver at the time of delivery, and it’s instantly credited.
• Contributions to your community — Through its alliance with SchoolPop.com, Webvan will donate up to 4 percent of each order to local schools designated by our customers.
• Enhanced recipe collection — Customers will now have access to more recipes, cooking tips and new a menu planning resource to simplify cooking for consumers and help save time.

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OnCall Healthcare Communications of San Diego has been awarded Health Call Center Standards accreditation by the URAC/American Accreditation HealthCare Commission.

OnCall is one of only 10 organizations accredited by URAC for Health Call Center Standards.

URAC is a nonprofit organization whose accreditation standards are nationally recognized as providing the benchmarks for quality in managed care organizations. URAC accredited companies provide health care to more than 120 million Americans.

OnCall specializes in demand management and nurse advice applications including nurse triage, medical advice protocols and health information.

OnCall's 24- hour nurse triage and advice service provides patients with immediate access to health care professionals who deliver advice and referrals to the appropriate clinical setting.

This service was developed by a group of board-certified emergency medicine physicians, internists, pediatricians, family practitioners, telephone advice nurses, clinical nurse midwives and psychologists. OnCall's experienced clinical staff employs a unique demand management approach that incorporates strong clinical content.

"Receiving URAC accreditation validates OnCall's focus on continuous quality improvement," says Dr. Brad Schwartz, OnCall Healthcare Communication's chief medical officer. "Our patients and clients can be assured that we meet the most stringent standards in the industry."

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San Diego Repertory Theatre, now in its milestone 25th Silver Anniversary Season, has renewed its agreement as both the resident artistic company and manager of The Lyceum Theatre — the visual and performing arts complex located in Horton Plaza.

The agreement is for the next 20 years.

Since the inception of theatre in 1986, San Diego Repertory Theatre and The Horton Plaza Theatre Foundation have worked in close partnership to develop and nurture downtown San Diego’s only "cultural town hall."

As resident artistic company, San Diego Repertory produces six plays each season for the 550-seat Lyceum Stage theater and the 270-seat Lyceum Space theater.

Since 1976, in its mission to produce "adventurous programming that explores key spiritual, political and cultural values vital to our community," the REP has presented 33 world premieres, 16 West Coast premieres and 56 San Diego premieres.

Over the last decade, San Diego Repertory Theatre has garnered more than 100 Drama-Logue Awards and San Diego Critics' Circle Awards for its productions. In addition to producing its six-play season, San Diego REP co-produces as managers of the Lyceum complex with such groups as the African American Council, the Asian American Repertory Theatre, McCaleb Dance, Mesa College Dance Co., Eveoke Dance Theatre and Teatro Mascara Magica.

"This long term agreement reflects the continued partnership between the REP and the city of San Diego," says Rep managing director Karen Wood. "In our 25th anniversary season we embrace this opportunity to continue to deepen our ties with the community by providing a cultural town hall and co-produce with diverse visual and performing arts organizations who might otherwise be unable to have their voices heard."

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Bycor General Contractors Inc. has completed improvements on a Governor Park space for real estate developer Yale Properties, reports Scott Kaats, Bycor’s CEO.

The $95,000 project, designed by Tina Bennett of Cooper Roberts Bennett, was completed in December. The 4,132 square foot building is located at 6256 Greenwich Drive. It is owned by Yale Properties.

Rich Byer served as the project manager and Steve Campton was the superintendent for Bycor.

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A comprehensive renovation is now under way at La Jolla's landmark Top O' The Cove, says Ron Zappardino, owner of the restaurant at 1216 Prospect St.

The refurbishment of the dining room, scheduled for completion by Feb. 1, will include new carpeting, overhead lighting enhancements, new window treatments, new crown moldings, refinished wood throughout, and the installation of Waterford Crystal lamps.

In addition, the restaurant will feature a newly-designed entrance, maitre 'd station and waiter stations. A new garden atrium will also be created to feature a display of ornamental and seasonal plants. New exterior awnings and signage will be installed in mid- to late- February.

Top O' The Cove will remain open for business during the renovation.

The upstairs Café at Top O' The Cove will receive a facelift consisting of new paint and wall coverings. To celebrate the completion of the renovation, new lunch and dinner menus designed by the chef are scheduled for late February.

For reservations, call (858) 454-7779 or visit www.topofthecove.com.

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Advanced Remote Communication Solutions Inc. has appointed David A. Brooks director of Government Markets for Innovative Communications Technologies Inc., one of its wholly-owned subsidiaries located in San Diego.

In this newly created position, Brooks will be responsible for identifying and cultivating business development and market opportunities for government markets.

Brooks brings a broad array of experience in satellite telecommunications and total quality management. Most recently, he served as project director for British Telecom Aeronautical and Maritime.

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Scopus, a supplier of digital compression technology to the broadcast industry headquartered in San Diego, reports that CBS Newspath will use a combination of Scopus CODICO platforms to broadcast its U.S. Presidential Inauguration coverage on Jan. 20 in Washington, D.C. from CBS headquarters in New York City.

With Scopus encoders, statistical multiplexers, integrated receiver decoders and a network management system, directors at CBS News headquarters in New York City will be able to direct and deliver the 15 source channels in the same manner as the CBS Evening News.

"CBS News' continued selection of Scopus proves that our platforms enhance coverage of some of the major events of our time,” says Jay Gedanken, Scopus v.p. "Scopus' years of digital encoding experience have resulted in a full service product line that is flexible and adaptable to the needs of a wide variety of customers and their exacting applications."

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SVI’s subsidiary, SVI Retail, launched the company’s new Replenishment Module at the National Retail Federation 90th Annual Convention and Expo in New York.

This module is the latest upgrade to San Diego-based SVI's Merchandise Management System and is fully integrated.

Retailers can now combine sales, seasonal demand, current trends and stock-outs to forecast precise levels for future orders, store inventory and warehouse picking.

"Our Replenishment Module addresses the needs of a variety of retail businesses,” says Bill Macfarlane, SVI Retail Executive v.p., Enterprise Solutions. “Softline as well as hardline retailers will be able to configure the application to meet their unique demands,"

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Novatel Wireless Inc. has made available a global positioning satellite module for its Lancer 3W Wireless 3 Watt Modem, which is used extensively by public service professionals.

With the additional capability afforded by GPS technology, the Lancer 3W Wireless Modem can improve response time for emergency personnel and can heighten officer safety.

Developed with large and medium sized public safety organizations in mind, the Lancer GPS Module can be added to existing Lancer 3W Wireless Modems by any technician, installer, or IT professional.

"Combining GPS with the power of the Lancer 3W Wireless Modem allows public safety professionals at a dispatch center to track the positions of all vehicles on a computer screen," says Matthew Yubas, product manager at San Diego-based Novatel. "During a 911 call, for example, the dispatcher can use position information to determine which is the closest available vehicle. Then the dispatcher can send routing information to that vehicle's portable computer to display the quickest route to a destination. We believe that the price is cost effective, the product is reliable both in keeping a connection and in accurately establishing location, and the proven rugged characteristics of the Lancer 3W make it the best choice for any harsh physical environment on the road. Moreover, the Lancer GPS Module and its software are easy to install, and are fully supported for both setup and diagnosing problems."

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Wireless Knowledge Inc., a Microsoft Corp. and Qualcomm Inc. company, has made a marketing agreement with OmniSky, a provider of branded wireless e-mail and Internet services for users of handheld devices.

Under the terms of the agreement, Wireless Knowledge, headquartered in San Diego, will promote OmniSky's wireless e-mail and Internet services to its enterprise customers.

In addition, OmniSky will market Wireless Knowledge's Workstyle Server to its enterprise customers, who can deploy Workstyle to allow employees to securely access critical enterprise information — such as e-mail, calendar and contacts — over OmniSky-enabled handheld devices.

"Access to corporate e-mail is one of our customers' most critical requirements," says Kristine Stebbins, v.p. of marketing at OmniSky. "To give a complete range of access to corporate e-mail, OmniSky provides solutions for mobile professionals who use Microsoft Outlook and now to enterprises.”

"OmniSky is an ideal partner for us," says Peggy Biddison, v.p. and chief marketing officer for Wireless Knowledge. "Their commitment to serve the mobile professional, together with our focus on wirelessly enabling the enterprise, creates a compelling offering.”

Wireless Knowledge and OmniSky have committed to a series of joint marketing activities such as partner programs and Web marketing. In addition, the two companies will cross-market their respective offerings to current and prospective customers. The companies also agreed to collaborate on the development of next-generation wireless solutions to enterprise customers.

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San Diego-based Widcomm Inc. announced an agreement to provide its Bluetooth software to Philips Components, one of the worldwide leaders in integrated electronics solutions.

Under the terms of the agreement, Philips Components will license Widcomm Bluetooth wireless technology software for embedded systems and Windows OS devices. Products resulting from this collaboration will be available through OEM partnerships.

"Our association with a valuable partner such as Widcomm is essential to our wireless connectivity strategy,” says Engelbert van Pelt, g.m. of Philips' Connectivity Group. “Together, we can enable our OEM customers to bring Bluetooth and other wireless-based products to market in record time,"

"We’re very enthusiastic about working with Philips," says Hiep Pham, Widcomm President and CEO. "Philips is respected worldwide for its innovative, market-leading technologies. Philips' Components Connectivity Group's Bluetooth initiatives are an excellent example of the company’s vision."

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