Daily Business Report-April 16, 2015
City Council Deal Could Pump Millions
Into an Endangered Qualcomm Stadium
By Lisa Halverstadt/Voice of San Diego
The Chargers may abandon Qualcomm Stadium but the city’s prepared to let a food and beverage company sink $6 million into building upgrades — and taxpayers could be on the hook to pay that company back if the team leaves.
A divided City Council subcommittee voted on Wednesday to push forward a contract with food and beverage provider Delaware North that calls for the company to upgrade kitchen and food sales areas, and for the city to pay that money back if the Chargers move to Los Angeles.
City staff says that regardless of whether the team leaves, it needs to keep the stadium operational and hosting events for at least a few more years.
Councilman Todd Gloria, who voted no along with Councilman David Alvarez, ripped what he dubbed a rushed proposal.
“Unless we want to talk out of both sides of our mouths, we know that there’s a strong desire to replace (Qualcomm Stadium) and one of the main barriers to replacing that facility is that we don’t have enough money to do it. So why on earth would we try and put another $6 million in debt on the taxpayer when we’re having a hard enough time funding a new facility?” Gloria said.
The budget committee voted 3-2 to send the contract to City Council, with Council members Myrtle Cole, Mark Kersey and Scott Sherman supporting it.
On top of bolstering an endangered facility, the proposal’s timing is bad for another reason: Effective Wednesday, Qualcomm Stadium’s longtime food and beverage contractor, a company called Centerplate, walked away from the stadium, leaving the city to grapple with how to cater June events and serve food and drinks at the One Direction concert in July. It has yet to formally approve the new contract.
“We had discussions with Centerplate. We requested them to stay and they declined,” Deputy Chief Operations Officer Ron Villa told the budget committee. “They adamantly declined. We are now in a situation where we have major events coming forth that we need to be prepared for, for our residents and visitors, and that’s why we are here today.”
The city’s contract with Centerplate expired Feb. 15, five days before the Chargers went public with plans to team with the Oakland Raiders on a Carson stadium.
— Voice of San Diego
San Diego Companies Received More Than
$200 Million in VC Funding in 1st Quarter
San Diego ranked sixth in California in venture capital deals in the first quarter of 2015 according to a new report by CB Insights.
San Diego saw 13 deals totaling $202 million in the first quarter. San Diego ranked sixth nationwide in health care venture deals (includes biotechnology) with three deals totaling $63 million.
San Jose and San Diego led for cities with the most green tech activity in the first quarter of 2014, but both had fewer than 5 deals each — San Diego green tech deals totaled $35 million.
Carson Stadium Qualifies for Ballot
An initiative aimed at building a football stadium in the Los Angeles suburb of Carson, possibly to house the San Diego Chargers and Oakland Raiders, has qualified for the city ballot, backers of the proposal said Wednesday.
Members of Carson2gether delivered more than 15,000 petition signatures to the city last month, and the Los Angeles County Registrar-Recorder/County Clerk’s office verified that enough of the signatures were valid. A total of 8,059 valid signatures were required to get the issue on the ballot.
The announcement comes one day after a National Football League executive advised San Diego officials to hurry up with their own stadium proposal, suggesting that a public vote on a financing plan that takes place in mid- to
The task force, appointed by Mayor Kevin Faulconer, has already suggested placing a stadium in Mission Valley. It would serve as a playing home for the Chargers, San Diego State University, the Holiday and Poinsettia bowls, high school championships and special events.
— City News Service
Rincon Band to Pay $9.5 Million in Traffic
Mitigations for Expansion of Harrah’s Resort
The Rincon Band of Luiseño Indians will pay $9.5 million in traffic mitigations for the $160 million expansion of Harrah’s Resort Southern California in Valley Center that was completed in 2014, the tribal government reported Wednesday.
The traffic mitigations include a $664,000 payment to San Diego County Association of Governments for Caltrans improvements, and $8.7 million to the county of San Diego. The Caltrans projects include fair-share contributions toward the recently completed State Route 76 and the I-15 Interchange, and fair share contributions for future improvements at the SR-76, Cole Grade Road intersection. Additional improvements include SR-76, Valley Center Road intersection and the SR-76 segment between Pankey and Courser Canyon Roads. The $664,000 payment is calculated on the percentage of total traffic on Caltrans’ roads for which the Harrah’s expansion has responsibility.
“The tribe is serious about mitigating increased traffic created by our enterprise, and focused on projects that will correct road safety threats,” said Rincon Tribal Chairman Bo Mazzetti, adding, “We have an investment in safe travel for our guests, our neighbors, and tribal members.”
According to Mazzetti, while the band and county have come to an agreement on the amount the tribe will contribute to improving commutes and safety on north county roads, they have not yet settled on specific projects.
Harrah’s Resort Southern California opened in 2002 as Harrah’s Rincon Casino and Resort. The name changed in March 2014, with the completion of a $160 million expansion, adding a second tower with 403 hotel rooms to the existing 662 rooms for a total number of 1,065, making it the fourth largest resort in San Diego County. A 23,000-square-foot convention and entertainment center was also added, along with a number of new amenities and restaurant remodels. Harrah’s Resort is owned by the Rincon Band of Luiseño Indians and managed by HCAL, LLC.
Paseo Summit Sells for $16.4 Million
CARLSBAD –The two-building Paseo Summit in Carlsbad has been sold for $16.4 million to Davlyn Investments. The seller was LNR Property Corp.
The two office buildings were built in 1999 and total 74,455 square feet on 4.6 acres. The project features panoramic ocean views, private outdoor spaces and balconies.
The property is comprised of office and medical space with tenants including Innovative Therapy 4 Kids, Ostendo Technologies and Roth Capital Partners.
Cushman & Wakefield is the exclusive listing agent for the property.
Company Execs Poorly Placed
To Handle Rising Cyber Risk
Less than half of company boards have the necessary skills to manage the rising threat of cyber attacks, a survey of global investors showed, with four of five respondents suggesting they might blacklist businesses that have been hacked.
The research from consultancy firm KPMG, which surveyed 133 institutional investors running a total $3 trillion in assets, also showed that 43 percent of investors believe board members of the companies they invest in have a level of skill and knowledge to manage innovation and risk in the digital world that is unacceptable.
Marti Emerald: Cancer Played
No Role in Reelection Decision
San Diego City Councilwoman Marti Emerald said Wednesday her battle against breast cancer played no role in her decision not to seek reelection next year.
At a meeting of the City Council’s Public Safety and Livable Neighborhoods Committee, which she chairs, Emerald described her health as “excellent.”
She was diagnosed with breast cancer last year and has been undergoing treatment that caused her to lose her hair — which has been growing back recently. The physical impact of her treatments has caused Emerald to miss occasional City Council meetings.
“It’s just time to turn a page to a new chapter in my life,” Emerald said.
“It has been my extreme honor and privilege to serve, it’s just been a highlight of my life,” the former television troubleshooter said. “And we still have a year and a half to go, so I’m not gone yet.”
She said she would announce her future plans next Wednesday at a 10 a.m. news conference.
Emerald represents a stretch of the city that runs from San Diego State University to Southcrest, including many economically disadvantaged neighborhoods. Her District 9 was created in time for the 2012 election, which she won handily.
— City News Service
CREW Hosts April 21 Real Estate Luncheon
Commercial Real Estate Women San Diego (CREW) will host its luncheon program, “Momentum in the Marketplace — Real Estate Perspectives for Key San Diego Submarkets,” on Tuesday, April 21, at 11:30 p.m. at the Sheraton La Jolla. The program will feature a discussion among San Diego’s top real estate brokers on recent investment activity and current trends in the Downtown, UTC, North County and I-15 corridor submarkets.
The panelists include Matthew Carlson of CBRE, Misty Moore of JLL, Brett Ward of DTZ and Chris Williams of Colliers International. Brian Galligan of Kilroy Realty Corp. will serve as moderator.
Tickets for the program range from $35 to $70. Registration after Sunday, April 19 will be handled at the door and include a $10 fee. For more information or to register, visit www.crewsandiego.org.
San Diego Employers Association Events
The San Diego Employers Association will host three upcoming business presentations:
• April 22 — Roundtable: To Arbitrate or Not to Arbitrate – That is the Question. 11:30 a.m. – 1 p.m. SDEA Training Facility – 4180 Ruffin Road, Suite 295, San Diego.
Event Description: Presentation will review recent arbitration-related cases at the state and federal levels, as well as provide in-depth analysis of the California Supreme Court’s recent decision in Iskanian v. CLS Transportation.
Cost: $35 SDEA members/$45 nonmembers; Lunch included. To Register, visit www.sdeahr.org or call (858) 505-0024.
• April 23 — Advanced Management Essentials Certificate series. 9 a.m. to noon, SDEA Training Facility – 4180 Ruffin Road, Suite 295, San Diego.
Event Description: A six-week series for those more experienced in their management positions, who value ongoing growth and expansion of their current skill sets. Topics include Leading Organizational Change, Project Management Skills, Beyond the Fundamentals of Employment Law.
Cost: Full series (6 weeks): $650 SDEA members/$775 nonmembers; Individual classes: $115 members/$150 nonmembers. To register: visit www.sdeahr.org or call (858) 505-0024
• May 5 — Strategic Leadership Series featuring Michael R. Cunningham, Ph.D. 11:30 a.m. to 1:30 p.m., Crowne Plaza Mission Valley, 2270 Hotel Circle North, San Diego.
Event Description: Michael Cunningham, president of National University and chancellor of the National University System, to speak on strategic leadership tips.
Cost: $49 SDEA members/$59 nonmembers. To register: Visit www.sdeahr.org or call (858) 505-0024.
Sundt Construction Promotes Brad Kirsch
Brad Kirsch has been promoted to preconstruction manager at Sundt Construction Inc. A Sundt team member for 13 years, Kirsch began his career with the general contractor as an intern, working his way up the ranks to his current position of managing the company’s preconstruction initiatives in California. In his new role, Kirsch is responsible for maintaining Sundt’s presence in the region while upholding current company standards, fostering innovation in the department and cultivating existing relationships with the local subcontractor community.
Recently, Kirsch lead the preconstruction planning for the $233 million San Diego International Airport Rental Car Center joint venture project with Austin Commercial in San Diego.