Daily Business Report-June 7, 2013
San Onofre Nuclear Plant to be Shut Down
Southern California Edison announced today that the troubled San Onofre nuclear power plant will be shut down because of uncertainty about its future. Anti-nuclear activists planned to rally outside the plant at 11 a.m. in celebration of the plant’s closing. The closing comes after a 16-month battle over whether the twin reactors could be safely returned to service. The plant “has served this region for over 40 years,” Ted Craver, chairman of SCE parent Edison International said in a statement. “But we have concluded that the continuing uncertainty about when or if (the plant) might return to service was not good for our customers, our investors, or the need to plan for our region’s long-term electricity needs.”
Business Leaders and Politicians Endorse San Diego Enterprise Zones
A group of business leaders and politicians gathered Thursday in Chula Vista in support of state enterprise zones, designated business areas that offer tax breaks and other incentives to employers in an effort to stimulate job growth. KPBS reports that supporters in San Diego have said enterprise zones have generated $1.7 billion and brought 20,000 jobs to the San Diego region. The zones are in danger of being replaced by a new system of economic stimulus supported by Gov. Jerry Brown.
A 2009 Public Policy Institute of California study compared data from businesses inside and outside of enterprise zones and found the zones were ineffective in creating jobs in most cases. Opponents of enterprise zones hold that the program is not an appropriate use of taxpayer money.
One of the criticisms of enterprise zones is that any business within the zone can get a tax credit. That means card rooms, fast-food chains and giant corporations are eligible. Last week, an investigative report by Sacramento NBC station KCRA reported on strip clubs within enterprise zones that received tax credits. The investigation also found a lack of transparency by the state in making information about companies participating in the program public.
The San Diego Enterprise Zone is one of California’s largest and most unique Enterprise Zones. Established in October 2006, the San Diego Enterprise Zone includes business communities throughout the region including; Downtown, North and South Park, University and City Heights, Barrio Logan, National City, Chula Vista, San Ysidro, Otay Mesa and others. As of Sept. 4, 2012, the state officially approved San Diego’s application to expand the zone North of I-8 into business communities such as; Rancho Bernardo, Mira Mesa, Kearny Mesa, Mission Gorge, Linda Vista, Bay Park, and North Bay.
Read more on this topic: www.hughesmarino.com/articles/capitol-update-enterprise-zones
Governor Aims to Open Tax Perks to All Businesses
Businesses across California could have access to state tax creditssimilar to those previously limited to economically challenged areas under a plan by Gov. Jerry Brown, the U-T San Diego reports. If approved by the Legislature, the proposal would also allow the state to begin offering tax breaks to companies to get them to move or expand in California. The state wouldn’t go to the extreme of writing checks to businesses – like Texas does – but by the beginning of next year it would have tools to sweeten its incentives. The governor unveiled the plan in May as part of his 2014 budget revise.
Read more: www.utsandiego.com/news/2013/jun/07/tp-brown-aims-to-open-tax-perks-to-all-businesses
Trigild Takes Over Portfolio of 37 Strip Centers
Trigild, a San Diego-based real estate firm specializing in property and asset management services, has taken over a portfolio of 37 strip centers encompassing 600,000-square-feet of retail space and valued at more than $50 million. Coldwater Portfolio Partners LLC selected Trigild to take over day-to-day operations – including lease administration and maintenance operations – for the properties, located in 17 states throughout the Southeast, West and Midwest, including Iowa, Colorado, Michigan, Illinois, Michigan, Louisiana, Wisco
nsin and Indiana.
San Diego North Chamber Hires New Director of Economic Development and Policy
Todd Philips, a veteran of more than 17 years in the private and public sectors, has been named the new director of economic development and policy by the San Diego North Chamber of Commerce. Philips worked in several leadership rolls with the San Diego Housing Commission and the San Diego Workforce Partnership, and worked as chief adviser to two CEOs on policy and management issues. He begins work on Monday.
Union Bank Expands Services
Union Bank has launched a new program aimed at providing banking services to low-to-moderate income consumers. Its new Access Account will allow those who may not qualify for a traditional bank account to obtain an account. The plan for a successful operation involves minimizing the likelihood of fees such as overdraft and nonsufficient funds while providing easier access to funds through branch offices and ATMs.
Real Estate Sales & Transactions
Summerwood Apartments in Fallbrook
The 33-unit Summerwood Apartments at 365 West Clemmens Lane in Fallbrook has been sold for $2.75 million to Felipe and Concepcion Jimenez. The seller was Crown Partners LP. The property has 12 two-bedroom, one-bath and 20 one-bedroom, one-bath units, and one unit used by management for storage. Marcus & Millichap Real Estate Investment Services marketed the property.
Four Points Business Park
Brookwood Financial Partners LLC in Massachusetts has acquired Four Points Business Park, a multi-tenant office property in San Diego.The 124,712-square-foot, three-building business park, which is 84 percent occupied, is located at the intersection of Ruffin Road and Chesapeake Drive in Kearny Mesa. the new owner intends to make “significant physical improvements” to the property.
Terraza Corporate Plaza Leases
New leases signed over the last 12 months totaling 45,803 square feet have taken La Terraza Corporate Plaza in Escondido to 96 percent leased. Cypress Office Properties principals Ron Lack and Mark Wayne acquired the three-story, 78,477-square-foot Class A property from a lender in October 2011 when the building was 38 percent leased. Regus was the newest lease. Other tenants include: Oak Creek Energy, Elizabeth Hospice, Wells Fargo Bank and RBC Wealth Management.
Sage at Oasis of Hope, Playas de Tijuana
One Eighty, an American operator of senior living communities, has opened its first location in Mexico, Sage at Oasis of Hope. The senior living community, situated within the Oasis of Hope Hospital in Playas de Tijuana, has 29 for-rent assisted living and memory care apartments targeted at San Diego and Tijuana area seniors. Amenities include fitness and balance building, 24-hour staffing, and an activity program. Information: (664-609-66-06.
The Joint Chiropractic Clinic Opens in Escondido
The Joint clinic, a franchised chiropractic clinic, has opened at 1250-A Auto Park Way in Escondido. The clinic is owned by Dr. Stephen Harkins of Harkins Chiropractic Corp. and is managed by The Joint franchisees and sisters, Stephanie and Beth McRae. Besides owning and operating four Massage Envy clinics in the San Diego area, Stephanie McRae has a law career. Beth McRae is president of The McRae Agency, a public relations and marketing firm. The Joint is being led by John Leonesio, founder and former CEO of Massage Envy.
CBRE Adds Senior Project Manager
Kellie Hill has joined the CBRE San Diego project management team as senior project manager. She oversees all project management in Southern California. Hill previously was vice president of project and development services in Southern California for Cassidy Turley. Before that, she was a project manager for Unisource Solutions Inc.Hill graduated from Arizona State University with a bachelor’s degree in construction management and has more than 15 years of experience in the construction, real estate and development industries.
Marcus & Millichap Appoints Senior Director
Aaron Bove has been appointed senior director of Marcus & Millichap’s Special Assets Services Group in San Diego. Bove joined the company in 2001 and was promoted to vice president of investments in 2009. He started his career with a Cincinnati-based multi-family developer which ultimately led him to San Diego and his current position as director of the National Multi Housing Group.
Teledyne Wireless LLC of Poway won a $28,016 federal contract from the Defense Logistics Agency’s Defense Supply Center, Columbus, Ohio, for audio radio amplifiers.
Coastal Marine Services
Coastal Marine Services of San Diego won a federal contract valued at up to $16,318 from the U.S. Coast Guard, Baltimore, for dockside repairs for the USCGC Pike. Place of performance will be in San Francisco.
Illumina Inc. of San Diego won a $57,855 federal contract from the U.S. Department of Agriculture’s Agricultural Research Service, Beltsville, Md., for the yearly maintenance of Tecan Roma laboratory instrument.