Daily Business Report-March 30, 2015
Supporters of convention center expansion hope it will keep the wildly popular Comic-Con in San Diego.
Consultant Hired to Perform Another
Study of Convention Center Expansion
Expansion of the San Diego Convention Center will be the subject of another consultant’s study to evaluate the type of expansion and the financial and economic value of enlarging the center.
Convention Sports and Leisure International, a Texas-based consultant, has been retained to do the study by the San Diego Convention Center Corp. in partnership with the city of San Diego and JMI Realty.
JMI Realty, the developer of Petco Park and the surrounding ballpark district, is the same company that in 2014 proposed a $1.4 billion plan to create a multi-use facility that would include a new stadium for the Chargers.
But those who ordered the new study pointedly said it will not be evaluating a joint-use stadium and convention center facility.
“The study will provide current market estimates on the financial and economic value of expanding the convention center and will evaluate both expanding the current facility with contiguous exhibit space as well as an expansion of exhibit and meeting space near the current facility, creating a campus-like environment,” according to a press release issued by the Convention Center Corp.
The last market study on expansion was completed for the 2009 Mayor’s Task Force. This new study is expected to be completed by mid-summer.
The new study is expected to:
• Help guide strategic marketing decisions for the convention center and any proposal to expand the facility. marketplace.
• Evaluate current and potential client needs and expectations. The 2009 study contemplated the Phase III Expansion completion in 2016 and many of the clients surveyed required a larger facility to return to San Diego. The impact of the delay on potential and current clients decisions about returning to San Diego and their future meeting needs are essential information in shaping how San Diego moves forward with any expansion.
• Determine if the prior goals for an expansion are still relevant. Those goals were to: 1) allow the convention center to retain existing clients needing a larger facility, 2) to host new clients who need a larger convention center than current exists and 3) to “double stack” several conventions at the same time.
• Study both a contiguous expansion and campus expansion program with current and potential clients of the convention center to ensure that what is eventually built will serve our market needs.
• Evaluate the impact of reduced hotel room inventory due to increased marketing efforts by large headquarter hotels to book in-house meetings thus removing room from utilization by clients using the convention center. The result could create weeks during peak convention months that the current and expanded convention facility would be under-utilized.
• Answer how ongoing delays may impact San Diego’s leadership role in the convention and meetings marketplace and the risks associated with further delays in building additional meeting and exhibit space.
Governor Brown Fills two San Diego Judgeship Slots
Gov. Jerry Brown announced the appointment of Marian F. Gaston of San Diego and Lisa R. Rodriguez of La Mesa to judgeships in the San Diego Superior Court.
Gaston, 44, has served as a deputy public defender at the San Diego County Office of the Primary Public Defender since 1996. She earned a Juris Doctor degree from the University of California, Berkeley School of Law and a Bachelor of Arts degree from Emory University. She fills the vacancy created by the retirement of Judge Allan J. Preckel. Gaston is a Democrat.Gov. Jerry Brown announced the appointment of Marian F. Gaston of San Diego and Lisa R. Rodriguez of La Mesa to judgeships in the San Diego Superior Court.
Rodriguez, 46, has served as a deputy district attorney at the San Diego County District Attorney’s Office since 1998. She has been an adjunct professor at the University of San Diego School of Law since 2014 and served as a deputy city attorney at the San Diego City Attorney’s Office from 1996 to 1998. Rodriguez earned a Master of Laws degree from the Chapman University Fowler School of Law, a Juris Doctor degree from the University of San Diego School of Law and a Bachelor of Arts degree from the UC San Diego. She fills the vacancy created by the retirement of Judge Susan D. Huguenor. Rodriguez is a Republican.
The compensation for each of these positions is $184, 610.
BAE Systems to Spend $100 Million
To Expand Shipyard in San Diego
BAE Systems announced it will invest $100 million to expand drydocking capabilities at its San Diego shipyard, and is looking to add as many as 500 workers. The expansion is due to an unexpected boom in business during the next five years as the Navy shifts more warships to San Diego.
The new pier and drydock will support current and future Navy surface ship repair, maintenance and modernization, and will accommodate cruisers, destroyers, amphibious assault ships, mine countermeasures ships and both variants of the Littoral Combat Ship. The expanded facilities may also service other ships and vessels under contract, including those for Military Sealift Command, the U.S. Coast Guard and the U.S. Maritime Administration.
The drydock will be the company’s largest in the United States, measuring 950 feet long and 205 feet wide, with a design lifting capacity of 55,000 tons.
The new Pier 4, at 415-feet long and 64-feet wide, replaces a 52-year-old pier and includes new services such as fresh water, electrical, sewage, and storm water containment.
The U.K.-based company currently employs 3,000 workers.
Meanwhile, another San Diego shipbuilder, Continental Maritime, announced it would be cancelling more than 100 layoff notices because of the expected business boom.
Forbes Magazine Says Padres Worth $890 Million
The San Diego Padres rank 19th in franchise value out of 30 Major League Baseball teams this year, according to a list published by Forbes.
The magazine estimated the franchise’s value at $890 million, a 45 percent increase over last year. The magazine listed revenue of $224 million and operating income of $35 million.
The authors noted the team’s off-season acquisitions of big-name players like pitcher James Shields and outfielders Matt Kemp and Justin Upton.
The Padres’ value outpaced that of the Cincinnati Reds, an original league franchise, and National League West rivals Colorado Rockies, 23rd, and Arizona Diamondbacks, 24th.
The New York Yankees led the list with a franchise value of $3.2 billion. The Los Angeles Dodgers and San Francisco Giants, also divisional opponents, ranked second and fourth, respectively, with values of $2.4 billion and $2 billion.
According to Forbes, the 30 teams have a combined value of $36 billion — 48 percent more than last year. Half the teams are valued at least $1 billion, up from four last year.
The increased is being fueled by television revenue, according to the magazine.
— City News Service
Spirit Airlines Changes Terminals at Airport
Spirit Airlines will move its operations from Terminal 2 East to a new location in Terminal 2 West at San Diego International Airport, effective on Tuesday.
Ticketing counters for Spirit Airlines will be located between JetBlue Airways and Virgin America in Terminal 2 West. Self-service kiosks in front of the airline’s ticketing counters will be available to help expedite the check-in process for passengers.
Signage along airport roadways and in the terminals will be changed to reflect the new location of Spirit Airlines.
All domestic Spirit Airlines arrivals into San Diego International Airport will use baggage claim carousel 4. International arrivals will continue to collect baggage after going through U.S. Customs and Border Protection, located on the ground floor of Terminal 2 East.
CNN Airport Network Added to Lindbergh Field
Passengers traveling through San Diego International Airport will soon be able to view news and entertainment with CNN Airport Network. The airport has begun installing television monitors throughout the airport. Once construction is complete, 25 monitors will feature CNN Airport Network in Terminal 1 and Terminal 2.
CNN Airport Network is the only live satellite-delivered airport programming service specifically designed for the busy traveler. The network delivers live daily news from CNN and HLN, original travel features, entertainment programming from HBO, TBS, TNT and TCM, and live sporting events from premiere sports leagues such as the NBA, MLB and the NCAA Men’s Basketball Championship.
Lindbergh Field also has other amenities, like free Wi-Fi, the Airspace Lounge and new shops and restaurants.
Microfinance Summit Set for April 15
Local microfinance organizations will come together on April 15 to host the seventh annual San Diego Microfinance Summit from 4:30 to 9 p.m. Presented by the San Diego Microfinance Alliance, the event will take place at University of San Diego’s Joan B. Kroc Institute for Peace & Justice.
The Microfinance Summit aims to educate those interested in or passionate about the field of microfinance. The group is made up of several local microfinance organizations, such as Accion San Diego, International Rescue Committee, CDC Small Business Finance, and Foundation For Women, among others.
This year’s event will focus on “Client Centricity,” which will promote fairness and transparency to empower microfinance entrepreneurs. It will feature a keynote speech from Alex Rizzi, deputy director at Smart Campaign, a global effort to unite microfinance leaders around a common goal: to keep clients as the driving force of the industry.
The event will also include the popular Microfinance Marketplace, which showcase more than 20 food and product offerings from microfinance borrowers, including items ranging from jewelry to homemade chocolate.
Tickets are $20 for students, faculty and staff, and $35 for the general public. To register for the summit, click here.
Scripps Health to Move Offices
Scripps Health has purchased a 131,000-square-foot office building that will centralize several business services in one place. The three-story building at 10790 Rancho Bernardo Road in northern San Diego is about one mile west of Interstate 15.
The building has been renamed Scripps Business Services, 4S Ranch, and will house about 675 staff members from Scripps Health Plan Services, patient financial services and medical foundation business services. These services are currently in leased buildings in Sorrento Valley. As many as 900 people could eventually be based in the building, including employees from other locations.
The building was previously home to JPMorgan Chase’s home mortgage and auto loan service office in San Diego. The building is to be renovated and Scripps Health business services are scheduled to start moving by the end of August.
Read Across America Day
Latasha Tarachsel, a volunteer with United Way of San Diego County (Above), reads to students at Rowan Elementary School in City Heights for Read Across America Day on March 6. The National Education Association estimates nearly 45 million children and adults celebrated the joy of reading on Dr. Seuss’s birthday each year. To inspire a love of learning and the written word, volunteers from United Way participated in NEA’s 18th Annual Read Across America Day and celebrated Dr. Seuss’s 111th birthday by sharing beloved tales from the local literary legend with students at elementary schools across the county.
You’re Invited: Good Neighbor Taste of Downtown
Securing Our eCity Foundation and CyberTECH will present the Good Neighbor Taste of Downtown event on Wednesday from 5 to 8 p.m. from the Silo–Markers Quarter at 753 15th St. The public is invited to taste a variety of food and to donate to San Diego programs.
The “Taste of Downtown” will feature more than 20 local restaurants that want to give back to the community by donating samples of their most desired recipes. The event will raise needed funds for vital community causes aimed to accelerate economic development in high technology, cyber security and the emerging Internet of Things, including STEM education and Workforce development.
The San Diego Food Bank also will benefit from the event. Last year, it distributed 22.3 million pounds of food and served on average, 370,000 people per month in San Diego County.