Daily Business Report-May 20, 2015
Some of the hats sold by Everyday California in La Jolla.
La Jolla’s Everyday California Founders
Get Picked Up By Global Brand Company
Sherman Oaks-based Cherokee Global Brands has acquired La Jolla’s casual lifestyle brand Everyday California from owners and founders Michael Samer and Christopher Lynch.
Samer and Lynch retain ownership of the Everyday California flagship store in La Jolla and will continue selling men’s and women’s apparel, accessories and footwear through a licensing agreement with Cherokee Global Brands. They also retain ownership of non-fashion categories, such as their signature ocean adventure business — kayaking and snorkeling tours, board rentals, among others.
“We are very excited to be adding Everyday California to our portfolio of style-focused lifestyle brands,” said Henry Stupp, CEO of Cherokee Global Brands. “Everyday California’s global potential made the acquisition a perfect fit for Cherokee Global Brands. The brand is more than a state of mind, it’s a way of life. Many great active lifestyle brands have been born in California, and we are confident that together with Mike and Chris we can take an already strong brand and make it even more successful.”
Stupp said Samer and Lynch will also become global brand ambassadors, leveraging Cherokee’s existing design, marketing, and supply chain infrastructure to expand the brand’s presence internationally.
“We have been actively working to identify new licensee partners for the brand,” Stupp said. “Several licensees have already been identified, and we expect to announce them shortly. In addition, through our global platform and expanded licensing network, we are confident that we shall be able to swiftly secure international partners for Everyday California.”
Everyday California will be formally introduced to the licensing community under Cherokee Global Brands June 9-11at the Licensing Expo in Las Vegas, booth number J81.
Midway Village Shopping Center Sells for $6.2 Million
The Midway Village Shopping Center at 3146-3194 Midway Drive in San Diego has been sold to Sunset Waste Holdings LLC for $6.2 million. The seller was Pacifica Woodside LP.
The shopping center has a total of 29,718 square feet in the heart of the Midway District trade area. Additional tenants include Charkbait Sportfishing, Fairouz, Fast Signs, Kyoto Sushi and many others.
The center is adjacent to the Sports Arena Plaza anchored by Target, Ralph’s, Home Depot, Ross Dress for Less, and Dick’s Sporting Goods.
CBRE represented the seller. The Heritage Group represented the buyer.
Sharp HealthCare to Launch Brain Cancer Institute
A brain cancer center based at Sharp Memorial Hospital will be named for Laurel Amtower, a popular San Diego State University professor who died from the disease.
A $5.7 million donation to support cancer services at Sharp HealthCare will help redefine the level of care in the San Diego region for people suffering from brain cancer, one of the most debilitating and lethal cancers.
The donation, made by the Amtower family, will establish the Laurel Amtower Cancer Institute and Center for Neuro-Oncology, which will be based at Sharp Memorial Hospital. The institute will be named in memory of Laurel Amtower, a SDSU English professor who died from brain cancer in 2010 at age 44.
Amtower died nine months after being diagnosed with glioblastoma multiforme, the most common and most aggressive malignant primary brain tumor in humans. She was known for having a great sense of humor, varied interests and a passion for teaching. Amtower — who authored three books as well as a number of articles and reviews — specialized in critical theory and medieval literature. Many students considered her a mentor, both professionally and personally. She is survived by her husband, Paul Justice, and daughter, Madeleine.
Beginning this summer, Sharp HealthCare patients with brain tumors will be able to receive highly specialized care from a team of experts at the institute. Patients will have access to the latest technology to diagnose and treat tumors, as well as cutting-edge clinical trials and research.
County Grand Jury: City Should Amend
Agreement With Convention Center
The city should amend a management agreement with the San Diego Convention Center Corp. to provide for greater oversight and clarify the types of expenditures for which each entity is responsible, the county grand jury recommended Tuesday.
Those were among 10 recommendations issued by the grand jury in a 15- page report on the agency that operates the San Diego Convention Center.
The grand jury’s report honed in on a series of problems, including a $7.8 million payment by the corporation on a stalled expansion project — a transaction that depleted its reserves for a few years and forced the postponement of some maintenance projects.
While the agency has started to rebuild its reserve account, there is nothing in the management agreement that authorizes the corporation to spend money on a planned expansion project, according to the report.
The corporation also needs to enhance transparency regarding its finances, particularly for the city’s annual contribution and the facility’s economic impact on the region, the grand jury found.
The report said the center’s annual budget lists city payments of around $3.4 million for marketing, promotions and capital projects when the true total is nearly $17.4 million. Most of the difference is debt service on a previous expansion project.
— City News Service
Analysis of Stadium Group’s
Report: Realistic But With Risks
Recommendations by the citizens task force on financing a new Chargers stadium in Mission Valley are “reasonable and realistic,” according to an intial analysis by the National University System Institute for Policy Research.
The institute identified in its report a number of areas of concern which city and county negotiators may wish to revise as the plan moves forward. Chief among them, it said, was a gap between the revenues that are to be raised and maintenance and operations costs at the new facility. “NUSIPR believes that Citizens Stadium Advisory Group’s plan identifies $196 million in revenues above what the group believes is needed to construct the stadium. However, the annual net operating loss, absent capital expense, of the existing stadium are estimated at $10.9 million. Without extraordinary cost savings at the new facility and/or ability to book in additional events that generate extraordinary levels of net operating surpluses, the CSAG plan would require up to an additional $130 million in net present value revenues to meet O&M responsibilities,” the report said.
The full report can be found here.
Former Joint Chiefs Chairman Joins
Patway Genomics Board of Directors
Retired U.S. Marine Gen. Peter Pace, a former chairman of the Joint Chiefs of Staff, has joined the board of directors of Pathway Genomics Corp.
“General Pace’s experience strategically directing large organizations in both the military and private sector make him an invaluable addition to Pathway Genomics as we grow our existing business and expand into new markets,” said Jim Plante, Pathway Genomics’ founder and CEO. “His expertise will help us continue providing innovative products that are disrupting the delivery of health care in a positive way today, like our IBM powered mobile health care app which is a revolutionary step forward in the field of prevention.”
Pace is a graduate of the United States Naval Academy. He holds a Master’s Degree in Administration from George Washington University and attended Harvard University for the Senior Executives in National and International Security program. He also is a graduate of the Infantry Officers’ Advanced Course at Fort Benning, Ga.; the Marine Corps Command and Staff College, in Quantico, VA; and the National War College, at Ft. McNair, Washington, DC.
San Diego County Home Prices Rise
The median price of a home in San Diego County rose by 4.6 percent in April, compared with the same month a year ago, while the number of homes sold jumped by 9.9 percent, a real estate information service announced Tuesday.
According to CoreLogic the median price of a San Diego County home was $455,000 last month, up from $435,000 in April 2014. A total of 4,026 homes were sold in the county, up from 3,664 during the same month the previous year.
A total of 21,708 new and resale houses and condos changed hands in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month, according to CoreLogic. That was up 9.9 percent from 19,706 in March and up 8.5 percent from 20,008 in April 2014.
The median price for a Southern California home was $429,000 in April, up 0.9 percent from $425,000 in March and up 6.2 percent from $404,000 in April 2014.
“Sales activity picked up last month, making it one of the stronger Aprils since the housing bust, though sales remained below average,” said Andrew LePage, a data analyst for CoreLogic. “Many buyers still face credit and affordability hurdles, and the inventory of homes for sale remains relatively tight in many markets. New home construction is still well below historically normal levels, too.”
— City News Service
Council OKs $57 Million Budget
For Tourism Marketing District
The City Council on Tuesday unanimously approved a $57.5 million budget for the San Diego Tourism Marketing District for the fiscal year that begins July 1.The TMD, which was caught in a tug-of-war between former Mayor Bob Filner and hotel owners two years ago, promotes San Diego as a vacation destination and provides funds for events that draw tourists to town.
One of the larger budget items for the district is an outgrowth of that dispute — a $19.5 million reserve fund to protect against ongoing litigation.
The TMD receives money from a 2 percent surcharge on hotel room rates — on top of the city’s regular room tax. That funding mechanism has been challenged in court as an illegal tax.
The district will also provide $26.5 million to the San Diego Tourism Authority, which purchases advertising and seeks out bookings for major trade shows at the convention center. According to a TMD presentation, the SDTA is hoping to reach 1 billion views of its paid advertising in the upcoming fiscal year.
The funding awards to organizations that put on special events include:
• $450,000 to the San Diego Bowl Game Association, which organizes the Poinsettia and Holiday bowl college football games.
• $300,000 to the Competitor Group for the Rock ‘n’ Roll Marathon
$200,000 to the Century Club for the Farmers Insurance Open golf tournament.
• $165,000 to the organizers of the San Diego Crew Classic rowing event on Mission Bay; and
• $150,000 to the California State Games, an Olympics-style athletic event held each summer.
The TMD will also fund three organizations for the first time — The California Police Athletic Federation for the U.S. Police & Fire Championships, $60,000; Koz Events for the Campagnolo Gran Fondo bicycle ride, Mission Bay Sprint Triathlon and Mission Bay Triathlon, $30,000; and LGBT Pride for its “Out at the Park” event, $25,000.
— City News Service
Nordstrom Rack to Open in La Jolla in 2016
Seattle-based Nordstrom Inc. announced plans to open a Nordstrom Rack
at The Shops at La Jolla Village in La Jolla in fall 2016. The store would contain 32,000 square feet.
When it opens, it will be the fifth Nordstrom Rack in the San Diego area and about one mile west of Nordstrom at University Towne Centre.
“Our new Rack at The Shops at La Jolla Village will offer an additional way to shop for the Nordstrom brands our customers love at great prices,” said Geevy Thomas, president of Nordstrom Rack. “San Diego has been a great home to us for many years and our new store will help us more conveniently serve those in North County.”
The new Rack will join existing retailers Whole Foods, Aaron Brothers and CVS. The Shops at La Jolla Village is located on Villa La Jolla Drive between Nobel Drive and La Jolla Village Drive, a block from I-5.
Tiffany English Named
Women’s Advocate of the Year
, principal at design firm Ware Malcomb, has been named Women’s Advocate of the Year by Connected Women of Influence. The award was presented at the Women of Influence Awards held at the Hilton San Diego Mission Valley. The awards honor women leaders in business, industry and enterprise.
English began her career at Ware Malcomb in 2001 as a project manager in the firm’s Northern California office. She later relocated to Sacramento to establish Ware Malcomb’s office in that market, and was promoted to director of interior architecture and design in 2006. She relocated to San Diego in 2007, and her success in growing the San Diego Interiors practice and expanding Ware Malcomb’s national corporate accounts led to her promotion to principal in 2013.
As principal, English is responsible for expanding the firm’s design services across the San Diego region, as well as overseeing the growth of the Phoenix and Latin America Interiors Studios.
Point Loma Credit Union Names President/CEO
Point Loma Credit Union has named David R. Brooke as its president/CEO. He joined PLCU in 2001 and became executive vice president operations/chief operating officer in 2003.
Brooke was born and raised in San Diego and graduated from San Diego State University. He has worked for three San Diego area credit unions, accumulating more than 20 years’ experience. He started his career in the Member Service Department at USA Federal Credit Union, and then became internal auditor at Marine Corps West Federal Credit Union (now Pacific Marine Credit Union). While at PMCU, he created the institution’s first internal audit department.
He also worked for McGladrey and Pullen LLC as a senior audit manager, where he was responsible for directing the financial statement audits of numerous credit unions. He earned his CPA license in 2001.