Daily Business Report — Aug. 15, 2014
Todd Gloria, San Diego City Council president, at a rally Thursday for the minimum wage and sick day boost.
Minimum Wage Ordinance
City Council to Hold Special Meeting
Monday To Consider Override of Mayor’s Veto
San Diego City Council President Todd Gloria has called a special meeting of the City Council for 11 a.m. on Monday to consider overriding Mayor Kevin Faulconer’s veto of the ordinance increasing the minimum wage and allowing workers to earn sick leave.
“The City Council should stand up for the 38 percent of San Diegans who are counting on this raise to help them better make ends meet, and I hope they will override the mayor’s veto,” said Gloria.
If the council overrides the veto, the ordinance will go into effect on Jan. 1, 2015, and approximately 172,000 San Diegans will earn raises to $9.75 per hour, and 279,000 will have the opportunity to earn up to five sick days per year, according to Gloria. The minimum wage will increase to $10.50 on Jan. 1, 2016 and to $11.50 on Jan. 1, 2017, with indexing to inflation starting in 2019.
A recent poll determined that 63 percent of San Diegans support the measure.
The City Council is required to consider an override within 30 days of the mayor’s veto. The City Council has no regularly scheduled meetings within that time period, as a quorum of the council is traveling to Washington, D.C. during the first week of September, when the council was previously scheduled to be back in session. Therefore, said Gloria, the special meeting is required. It will be in City Council Chambers, City Administration Building, 202 C Street, 12th floor, Downtown.
San Diego County Jobless Rate Increases
The unemployment rate in the San Diego County was 6.6 percent in July 2014, up from a revised 6.1 percent in June 2014, and below the year-ago estimate of 8.0 percent, the state Employment Development Department reported today.
California’s jobless rate for the same period was 7.8 percent. The nation’s unemployment rate was 6.5 percent.
Between June 2014 and July 2014:
Total nonfarm employment declined from 1,350,400 to 1,344,500, a loss of 5,900 jobs. Agricultural employment decreased by 800 jobs, or 7.6 percent.
• Government reported the greatest month-over decline, down 12,700 jobs. Local government (down 9,700) accounted for more than 75 percent of the job losses in this sector, all from a seasonal decline in local government education (down 9,700). State government declined by 3,100 jobs, all from state government education (down 3,100). Federal government (up 100) slightly offset the overall job losses in this sector.
• Three other nonfarm sectors also posted month-over job losses: other services (down 900); educational and health services (down 400); and financial activities (down 100).
• Six sectors recorded month-over job gains. The most significant job growth came from professional and business services (up 2,800), largely from professional, scientific, and technical services (up 2,200). Leisure and hospitality added 2,700, mostly from food services and drinking places (up 1,400). Construction increased by 1,500 jobs, primarily from specialty trade contractors (up 1,200).
Between July 2013 and July 2014:
Total nonfarm employment gained 37,200 jobs, or 2.8 percent. Agricultural employment declined by 400 jobs, or 4.0 percent.
• Educational and health services recorded the greatest year-over gain, adding 7,500 jobs. Healthcare and social assistance (up 6,000) contributed to roughly 80 percent of the job growth in this sector. Educational services increased by 1,500 jobs.
• Eight other industries also added jobs over the year. The most notable job gains came from professional and business services (up 7,000), mainly from professional, scientific, and technical services (up 6,700). Construction also gained 7,000 jobs, largely from specialty trade contractors (up 4,200). Leisure and hospitality increased by 6,000 jobs, primarily from food services and drinking places (up 4,200). Trade, transportation, and utilities added 4,900 jobs, mostly from retail trade (up 3,100).
• One nonfarm industry recorded year-over job losses: financial activities (down 800).
Luxury Apartments Completed in Kearny Mesa
Sunroad Enterprises announced the completion of the first and second phases of Ariva, the luxury apartment complex in the company’s San Diego Spectrum Center in Kearny Mesa.
The first two phases, called Ariva Lux and Ariva Skye, contain 253 apartment homes in a club-style atmosphere offering fitness facilities, resort-style pool areas, game rooms, resident theater, built-in barbecue entertaining areas, community open space, and on-site services ranging from cooking classes to yoga in the park and concierge. There are 126 homes in Ariva Lux, the first phase building located on the south side of the park, and 127 homes in Ariva Skye, the second phase building located on the north side.
“Sunroad took the urban luxury concept and applied it to what used to be a sleepy underserved suburban market in one of the best locations in San Diego County,” said Sheri Kohn of Riverstone Residential Group, the on-site management firm for Ariva.
Ariva’s architecture and landscaping have been designed by TCA Architects and Schmidt Design Group. The interior designer for Ariva was Robin Wilson, the general contractor was Kitchell, and Wermers Properties teamed with Sunroad in the development of the project.
Ariva Lux is 40 percent leased with move-ins under way. Preleasing has begun for Ariva Skye, which will be ready for move-ins by mid-August. Lease rates range from $1,700 per month to $2,800 per month, depending on unit size and location.
Park Boulevard Properties Sell for $6.2 Million
GLD Housing Inc. has acquired five commercial parcels on Park Boulevard in the Uptown area of San Diego for a total of $6.2 million. The company intends to redevelop the site for HUD housing and to build a fourth Tower on Park for senior and low-income housing. The properties sit on the highest point in Hillcrest, in close proximity to Mission Valley, Banker’s Hill and North Park.
The five parcels are 3952, 3958, 3960, 3968 and 3974 Park Blvd. and total 24,900 square feet. Cushman & Wakefield was the broker.
SR Commercial Property Acquisitions Total $51 Million
San Diego-based SR Commercial has acquired an office, industrial and retail center in the Miramar area and the Morena Business Center on Financial Court in San Diego for $51 million.
The Mark II Portfolio consists of eight single- and multi-tenant industrial buildings, five multi-tenant office buildings and one retail/showroom building that is occupied by 24 Hour Fitness. Located on 15 acres, the property was purchased for $40 million from TA Realty Associates.
The Morena Business Center was acquired for $11 million from a family trust. SR Commercial plans to renovate the vacant units.
Cassidy Turley was the broker in the transactions.
Village Club Card Room Under Construction
CHULA VISTA — Dempsey Construction has started construction on the new $3.7 million Village Club Card Room at 285 Bay Boulevard in Chula Vista. The company said it will be one of the largest non-Indian card room casinos in San Diego County.
The 14,000-square-foot Village Club project consists of the complete build out and construction of the card room casino with accompanying full service restaurant and bar. Project improvements include a large porte cochere entry, 30-foot-high elevated ceilings in the main card room, 20 Black Jack, Poker and Pai Gow tables, two high limit areas, full-service kitchen, indoor and outdoor bar with exterior patio area containing multiple fire pits and water features. The design architect is Joseph Wong Design Architects of San Diego.
County Earns Hat Trick in Credit Ratings
Moody’s credit rating agency this week upgraded the County of San Diego’s rating to Aaa, putting the county in exclusive company. The county now has the highest credit rating from all three of the top credit agencies. With Standard & Poor’s and Fitch reaffirming their AAA ratings for the county, it becomes one of only nine counties in the nation to have a “triple triple-A.”
Moody’s boost from Aa1 to Aaa reflects the county’s sound financial management, healthy cash and reserve levels, and diverse and strong economy, according to officials. It also helps save money when it comes to financing, because the high credit ratings mean borrowing at lower interest rates.
“Securing the highest rating is not only great news for our county government, but for taxpayers who expect public agencies to keep their fiscal house in order,” said Supervisor Dianne Jacob, chairwoman of the Board of Supervisors. “It gives us even more flexibility to fund future projects and reinvest in the county.
The county is one of only three in California to have Moody’s Aaa rating. The agency forecasts a stable outlook.
Deadline Extended for Most Innovative New Products Awards
The deadline to nominate for Connect’s Most Innovative New Product has been extended to Friday, Aug. 22. Connect will honor San Diego’s celebrities of innovation along with the groundbreaking new products launched within the last year.
Click here for nomination details.
ViaCyte Scores $5.4 Million Private Financing
ViaCyte Inc., a privately-held regenerative medicine company focused on developing novel cell therapy for the treatment of diabetes, has completed a private equity financing transaction. This transaction provides the company with $5.4 million through the sale of Series C-1 Preferred stock and warrants to purchase common stock. The first closing of the Series C-1 occurred in July with additional investments from a nonprofit corporation and several individuals. ViaCyte will use the funds for the clinical development of its VC-01 product candidate.
Executive Director Named
For Sanford Education Center
Allyson Handley has been appointed executive director of National University’s Sanford Education Center, which is scheduled to formally launch on Sept. 18. Handley who is currently president of the University of Maine at Augusta, has an extensive background in higher education public policy and leadership, and holds a Doctor of Education degree from Johns Hopkins University. In her new role, she will oversee the development and national implementation of three programs that address critical needs in the nonprofit and education sectors. She will join National University and the center in mid-September.
Her appointment marks a return to National University for Handley, who during the 1990s served as Dean of the School of Education and Human Services, Vice President of University Advancement, and Vice President for Development and Alumni Relations.
Nuffer, Smith Tucker Agency Hires
Government Relations Specialist
Paul Worlie has joined Nuffer, Smith, Tucker as the agency’s public affairs and government relations specialist. It said it will use Worlie’s experience in government affairs and political strategy to build relationships with elected officials in California and lead public education initiatives on behalf of agency clients. Worlie’s primary work will include collaborating with city and county elected officials statewide to educate the public about agriculture issues on behalf of the Citrus Pest & Disease Prevention Program, an NST client since 2008.
Worlie has more than 20 years of experience in public affairs, government relations and campaign management. He has headed political campaigns for local, state and national leaders, and is the former deputy executive director of the Democratic Senatorial Campaign Committee. His past clients have included U.S. Senate Majority Leader Harry Reid and former U.S. Senate Minority Leader Tom Daschle.
Jewish Community Foundation
Selects New President and CEO
The board of directors of the Jewish Community Foundation of San Diego has selected Charlene Seidle as the foundation’s next president and chief executive officer at the retirement of outgoing President & CEO Marjory Kaplan in January. The selection was made after a national search that began this spring following Marjory’s decision to retire after serving in the position for 20 years.
Seidle will be leading the largest grantmaking organization in the San Diego region with over $100 million in grants during the last fiscal year and nearly $1 billion granted since its inception in 1967.
Currently executive vice president at the Leichtag Foundation, Seidle has played a leadership role in the development and implementation of Leichtag’s programs such as the North County Jewish Hub, Jerusalem Matching Grant Initiative, and Jewish Food Justice Fellowship.
Seidle was recently honored with the J.J. Greenberg Award, an international prize that recognizes foundation professionals who have demonstrated extraordinary leadership in the field of Jewish philanthropy. She served on the San Diego Grantmakers board and currently serves on the board of the Jewish Funders Network.
Seidle’s tenure will begin Jan. 20. Marjory will continue a relationship with the foundation in an advisory role.