Daily Business Report-Jan. 23, 2018
The campus of Cal State San Marcos.
Cal State San Marcos Economic Impact
Measured at $458 Million Annually
Cal State San Marcos is an economic engine that supports thousands of jobs by pumping more than $458 million into the region annually and boosting the future earning potential of its students, according to a comprehensive study conducted by a team of CSUSM seniors.
The 45-page report — which looks at both the main campus in San Marcos and a satellite campus in Temecula — investigated the university’s economic impact during the 2016-17 academic year. Among the highlights:
- The combined impact of CSUSM and its auxiliary organizations —including payroll and student expenses — at the San Marcos campus came to $443,658,002. The combined impact of CSUSM’s Temecula campus resulted in $14,406,610.
- The impact of the $123,115,529 in payroll distributed and spent by CSUSM and its auxiliary organizations at the San Marcos campus supported 1,970 jobs. The impact of the $3,574,379 in payroll distributed and spent by CSUSM at the Temecula campus supported 57 jobs in Southwest Riverside County.
- Students at the San Marcos campus spent a total of $145,455,317 (not counting tuition, fees and books), while students at the Temecula campus spent a total of $4,414,317 (not counting tuition, fees and books).
- The total estimated state and local tax revenue generated by university-related activities at the San Marcos campus exceeds $25 million annually, and the total estimated state and local tax revenue generated by university-related activities at the Temecula campus exceeds $800,000 annually.
“The primary goal of the economic study was to demonstrate the short- and long-term impacts generated from the University’s direct spending activity, as well as from developing a more productive workforce with higher wages and an overall improvement in the lives of the graduates and their communities,” said Kevin Dunwell, an accounting student who led the team.
Coronado City Council Suspends
Collection of City’s Business License Tax
The Coronado City Council has voted to indefinitely suspend collection of the city’s business license tax and streamline home occupation and business occupancy permit processes.
“Making a living is hard enough without government nickeling and diming small businesses and subjecting them to bureaucracy for the sake of bureaucracy,” said Mayor Richard Bailey, who spearheaded the initiative on Jan. 16 along with Councilman Whitney Benzian.
In addition to suspending the business license tax, the decision by the council also eliminated the fees for Home Occupation and Business Occupancy permits, which were previously $35 and $219, respectively.
These changes to the city’s business tax policy, result in fees of $25, the lowest business-related tax and/or fees for any city in San Diego County.
“I am proud we are doing what we can at the local level to make it easier for our residents and people that do business in Coronado to keep the money they earned in their own pocket,” said Bailey.
The change in policy begins Jan. 1, 2019 and applies to all businesses based in Coronado as well as businesses that operate in Coronado but are based in other municipalities.
Sudberry Properties Starts Construction
of Second MedImpact Headquarters
Sudberry Properties has announced the start of construction for the second MedImpact corporate headquarters campus building, a 158,000-square-foot, six-story building with an adjacent four-level parking structure at 10159 Scripps Gateway Court in San Diego.
Sudberry Properties is the development and construction manager for MedImpact, the nation’s largest privately held pharmacy benefit manager. The new facility is an extension of MedImpact’s existing corporate headquarters building, which Sudberry Properties completed in 2010.
The development team includes Architects Hanna Gabriel Wells, GroundLevel Landscape Architecture and Swinerton Builders. Completion is scheduled for December 2018.
Set on 5.17 acres, Watermark Building 2 will include a large outdoor courtyard for casual meetings, social gatherings and exercise. The two buildings will be connected by a pedestrian bridge, both of which will be situated in the outdoor courtyard.
“The new facility was designed to complement MedImpact’s existing office and further enhance the business campus environment,” said Colton Sudberry, president of Sudberry Properties. “The exterior utilizes similar natural stone and an abundance of glass.”
General Atomics Develops Capacitor
Technology for High-Voltage Operations
General Atomics’ electromagnetic systems business unit has produced a capacitor technology designed to operate at high voltages and temperatures.
The company said the new capacitor works to support stable operation of power electronics at more than 1000 volts and temperatures as high as 500 degrees Celsius.
Scott Forney, president of General Atomics Electromagnetic Systems, said the company developed the technology for customers who aim to build ultra-high temperature power electronics.
Forney added that the new offering is meant to provide more stable behavior in varying temperature ranges over current capacitors.
General Atomics received a contract from the Defense Department’s Ordnance Technology Consortium to supply high-energy density capacitors for a non-lethal platform that works to stop and disable vehicles.
General Dynamics Subsidiary Gets Contract
Changes for Navy Sub’s Vertical Array Fixtures
A subsidiary of General Dynamics has received a modification worth $11.4 million on a previously awarded contract for the supply of large vertical array fixtures for two U.S. Navysubmarine classes.
The modification exercises the first option year of General Dynamics Electric Boat’s production of LVA fixtures for Ohio-class and Virginia-class ship sets, the Defense Department said.
DoD expects work under the modification to conclude by August 2019, with the Naval Sea Systems Command obligating $1.6 million fiscal 2017 Navy research, development, test and evaluation funds at the time of the award.
Work locations are in California, Connecticut, Florida, New York and Pennsylvania, DoD added.
The LVA outboard installation contract that covers the award has a potential value of $882.1 million and was awarded in August 2017. LVAs are intended to provide acoustic detection faculties to submarines with minimal interference to the vessel’s naval architecture, hydrodynamics and signatures.
Pulse Electronics Acquires
Austrian-Based Egston Holdings
San Diego-based Pulse Electronics Corporation announced the acquisition of Austrian-based Egston Holdings, a leading European magnetics and cable assembly provider to the electric vehicles, automotive, industrial, and power magnetics markets.
Egston, with 2017 revenues of approximately $87 million, six facilities in Austria, Czech, China and India, and 1,400 employees globally, complements several growing segments of Pulse.
“The acquisition of Egston, a leader in inductive components and cable systems for the electronics, power distribution, automotive and construction vehicle markets, expands Pulse’s high technology product offering in the growth markets we already serve,” said Mark Twaalfhoven, CEO of Pulse Electronics.
Egston will operate as an independent business unit of Pulse, known as Egston a Pulse Electronics Company. Egston CEO Frank Wolfinger will continue to lead the unit as general manager. Pulse will maintain the Egston brand and continue manufacturing its entire product line in order to continue to serve its existing customers.