Daily Business Report — Oct. 19, 2011
County Foreclosure Notices Decline
The number of San Diego County homeowners that were pulled into the foreclosure process during the third quarter fell by 14 percent from the same period of last year, according to San Diego-based DataQuick, la real estate information service. Notices of Default that were recorded for the third quarter of this year totaled 5,048 compared to 5,869 in the third quarter of 2011. Trustee deeds recorded — or the actual loss of a home to foreclosure — dropped from 3,132 in the third quarter of last year to 2,460 in this year’s third quarter, a decline of 21.5 percent.
A total of 71,275 Notices of Default (NoDs) were recorded at county recorders offices during the third quarter. That was up 25.9 percent from 56,633 for the prior three months, and down 14.4 percent from 83,261 in third-quarter 2010. Last quarter’s 71,275 NoDs, which mark the first step in the formal foreclosure process, jumped back to levels seen earlier this year and late last year. Lenders filed 68,239 NoDs during first-quarter 2011 and 69,799 in fourth-quarter 2010. NoDs peaked in first-quarter 2009 at 135,431.
“Figuring out what’s actually going on when it comes to foreclosures can be a logistical nightmare,” said John Walsh, DataQuick president. “In each case there are at least six or seven different legal entities contending with each other, each with a different agenda and timeline: The original lender, the homeowner, the current owner or owners of the loan, the servicing institution, the outfit doing the actual foreclosing, and the county recorder’s office.”
The most active beneficiaries in the formal foreclosure process last quarter were Bank of America (14,325), Bank of New York (11,052), and Wells Fargo (9,740). The most active trustees, companies doing the actual foreclosing, last quarter were ReconTrust Co (mostly for Bank of America and Bank of New York), Quality Loan Service Corp (Bank of America), California Reconveyance Co (JP Morgan Chase), Cal-Western Reconveyance Corp (Wells Fargo) and NDEx West (Wells Fargo).
Trustees Deeds recorded (TDs) totaled 38,895 during the third quarter. That was down 8.4 percent from 42,465 for the prior quarter, and down 14.3 percent from 45,377 for third-quarter 2010.
Foreclosure resales accounted for 34.2 percent of all California resale activity last quarter. It was 35.6 percent the prior quarter, and a year ago it was 35.5 percent. It peaked at 57.8 percent in the first quarter of 2009..
Court Upholds City Ban on Marijuana Dispensaries
Superior Court Judge Ronald Prager has issued a ruling that marijuana dispensaries are prohibited by zone in San Diego. Prager’s ruling follows his granting of a temporary restraining order shutting down the Oasis Herbal Center on University Avenue. Responding to the judge’s action, City Attorney Jan Goldsmith said, “I think it is clear that building owners and dispensaries that don’t voluntarily close their doors will be held accountable for violations of the law. We are obligated to enforce the law and we will do so.”
WD-40 Company Posts Fourth Quarter Results
San Diego-based WD-40 Company reported net sales for the fourth quarter ended Aug. 31 of $90.7 million, an increase of 12 percent from the fourth quarter last year. Year-to-date net sales were $336.4 million, up 5 percent from the prior fiscal year and a record for the company. Net income for the fourth quarter was $10.2 million, an increase of 48 percent compared to the prior year fiscal quarter. Year-to-date net income was $36.4 million, an increase of 1 percent from the prior fiscal year, and was also a record for the company.“While we are happy with the big year we had and our record sales and net income, the year was not without its own pains with the pressure of rising commodity prices, reduction of gross margin and flat earnings,” said Garry Ridge, president and CEO. Gross margin was 48.2 percent in the fourth quarter compared to 50.7 percent in the same quarter of the prior fiscal year. Year-to-date, gross margin was 50.0 percent, compared to 51.4 percent in the prior fiscal year.
FAA Grant to Improve Lindbergh Field Sustainability
The Federal Aviation Administration has awarded a $2 million grant to San Diego International Airport to purchase low-emission infrastructure that will provide power and preconditioned air units for aircraft at the new green build gates. It will eliminate the need for the planes to use their engines while at the gate, lowering emissions, reducing fuel usage and improving air quality. “This grant will help the Authority follow through on the commitment it made to improving air quality in the region while also helping reduce our carbon footprint,” said Thella Bowens, president and CEO of the Airport Authority. “These gate units will make our airport — and by extension, our community—more sustainable.” The Airport Authority will use the grant money to help fund the installation of 400Hz power and preconditioned air units at each of the 10 gates being installed as part of The Green Build terminal expansion.
Designs Completed for Newbreak Church Renovations
KMA Architecture & Engineering has completed designs for the renovation of the Newbreak Church in Ocean Beach, a construction project expected to be completed in December. Located at 2069 Ebers St., the 6,000 square-foot one and two-story church is being renovated to give the facility a more modern feel. The existing wood and brick exterior cladding of the facility will be removed to create a sleek, contemporary look, and the entrance will be relocated to provide church-goers with a spacious gathering area shaded by a trellis. Modifications also will be made to improve church sanctuary acoustics. The KMA team consists of Don Blair, Rich Guerena, Jay Janda and Alison Warren. Burkett & Wong provided civil and structural engineering services, Teza Design provided mechanical and plumbing engineering services and J Lopez Engineers provided electrical engineering services.
Trigild Appoints Associate General Counsel
Trigild, a San Diego-based distressed property and operations management company, has named David Wallace its associate general counsel. Wallace will be based at the firm’s Dallas office to provide legal and strategic expertise to Trigild management. Wallace was previously an associate with Fulbright & Jaworski LLP in its Dallas office. He holds a J.D. from Southern Methodist University’s Dedman School of Law and a bachelor’s degree from Texas Christian University.
Small Business Workshops
SCORE San Diego continues its series of small business workshops. For more information, call (619) 557-7272 or visit score-sandiego.org.
• Oct. 20 QuickBooks Basic for Nonprofits 9 a.m. to 4 p.m. at The San Diego Foundation in Point Loma (2508 Historic Decatur Rd., #200, San Diego 92106; pre-paid registration $69, $79 at the door).
• Oct. 21 Financing Your Business 9:30 a.m. to 12:30 p.m. at National University in Carlsbad (705 Palomar Airport Road, Carlsbad 92011; pre-paid registration $29, $39 at the door).
• Oct. 25 Introduction to Starting Your Own Business - 9 a.m. to 4:15 p.m. at National University in Carlsbad (705 Palomar Airport Road, Carlsbad 92011; pre-paid registration $69, $79 at the door).
• Oct. 26 Internet Marketing 304: Cost-Effective Internet Marketing Tools 9 a.m. to noon at National University in Kearny Mesa (9388 Lightwave Avenue, San Diego 92123; pre-paid registration $49, $59 at the door).
The Daily Business Report is produced by REP Publishing Inc., publisher of SD METRO, the North Park News and the West Coast Craftsman. Contact: Manny Cruz (619) 287-1865.