soaring dimensions 2009

Soaring Dimensions 2009 is available on San Diego Source — sddt.com/soaring09

BByy TTHHOORR KKAAMMBBAANN BBIIBBEERRMMAANNThe Daily Transcript

The story of the centralcounty appears to be as mucha story about what isn’t hap-pening as what is.

Neither office nor industri-al space can be filled if com-panies are shrinking. Thecounty’s unemployment ratewas 10.1 percent in June, upfrom a revised 9.6 percent inMay and 5.9 percent duringthe like period time last year.

Nonfarm employment wasdown 52,200 jobs comparedto May 2008, a decrease of 4percent year over year.

In downtown San Diego,TThhee IIrrvviinnee CCoo.. has placed itsplanned 700,000-square-foot office tower for WestBroadway on indefinite hold,hotels at Lane Field can’t goup until the market improvesand there is no certainty as towhat the Ballpark Villageplan will look like if and whenit’s developed.

Downtown has roughly 5million square feet of indus-trial space that is bothdecades old and largely occu-pied. The industrial availabil-ity rate in that submarket isjust 4 percent.

What downtown San Diegostill has too much of is officespace. Although the submar-ket did manage to absorb amodest 18,778 square feetduring the first half of theyear, according to CCBB RRiicchhaarrddEElllliiss, the availability rate is19.8 percent. What’s more,the tenants going in generallyreceive sharply reduced rentsand much higher tenantimprovement allowances.Such measures are needed, asthe availability translates toabout 1.87 million square feetof space.

Along the Interstate 15Corridor, millions of squarefeet of old industrial propertywas in the process of being

transformed into attractiveClass A office space when therecession hit. Much standsempty.

CBRE reports that thedirect office vacancy in theRancho Bernardo/Powaysubmarket was 32.5 percent,and the overall availabilityrate was at 38 percent as ofthe end of June. Only theSouth Bay had a worse rate,with a mind-numbing 42 per-cent availability, CBRE stat-ed.

Meanwhile, the old indus-trial space in places rangingfrom Rancho Bernardo toKearny Mesa is rapidlybecoming obsolete as manu-facturing disappears from thelocal economy.

The Rancho Bernardoindustrial market had a 14.2percent industrial vacancyand a 21 percent industrialavailability as of the end ofJune, according to CBRE.

Rancho Bernardo returnedsome 272,560 square feet ofindustrial space to the marketin the second quarter,Miramar kicked back 174,251square feet and Poway experi-enced 157,234 square feet ofnegative industrial absorptionin the second quarter. A bit tothe north in Escondido, atotal of 168,854 square feet ofindustrial space was returnedin the second quarter.

Kearny Mesa’s industrialmarket has fared better,despite having a nearly 18million-square-foot industri-al base. That submarket had a4.5 percent industrial vacancyrate and a 7.3 percent avail-ability rate despite agingspace.

Kearny Mesa’s office mar-ket, which includes theSunroad Centrum building,had a 17 percent direct vacan-cy and a 22.4 availability rateat the end of June. A net totalof 55,547 square feet was

given back to the submarketin the second quarter. Thegood news for Sunroad is thatBBrriiddggeeppooiinntt EEdduuccaattiioonn hasfilled its 250,000-square-footbuilding.

Torrey Pines, which isn’tnormally thought of as anindustrial market, actuallyhas more than 5.6 millionsquare feet of such space.Filling the space hasn’talways been easy. TorreyPines had a 9 percent directvacancy and a 16 percentoverall availability rate as thesecond quarter drew to aclose.

Torrey Pines’ office markethas been defying the oddsdespite the economy, demon-strating the continuing lure ofthe University of California,San Diego. CBRE reportedthe direct office vacancy onthe Torrey Pines mesa was amere 0.9 percent at the end ofJune.

The state Route 56Corridor, where IInnttuuiitt(Nasdaq: INTU) takes upmore than half of a 937,000-square-foot submarket, thedirect vacancy was just 1.9percent. The availability ratestood at 4.1 percent on June30, but this is still a verystrong statistic.

At the other end of SR 56 inDel Mar Heights is a submar-ket that has come full circle,and not in a positive way.

Around the turn of thedecade, PPeerreeggrriinnee SSyysstteemmssand a handful of other high-technology firms occupiedmore than 500,000 squarefeet in KKiillrrooyy RReeaallttyy’s (NYSE:KRC) Carmel CorporateCenter. After the dot-comcrash at the beginning of thisdecade the space was vacated,leaving the market with avacancy of 30 percent ormore.

BByy RREEBBEECCCCAA GGOOThe Daily Transcript

The construction projectslated for the south side ofAsh Street in the Cortez Hillneighborhood of downtowntakes the notion of “mixed-use” seriously.

The 18-story, 325,000-square-foot building willinclude two hotels with6,000 square feet of spacefor meetings and events,10,000 square feet of restau-rant space, three commerciallease spaces totaling 8,500square feet, two penthousesuite condos, and four addi-tional stories of undergroundparking.

“This is extremely diversemixed-use,” said Ried Floco,chief operating officer forSan Diego-based real estatemanagement companyNNaarrvveenn EEnntteerrpprriisseess. “It pret-ty much covers all the com-ponents that you can put intodowntown.”

The 719 Ash Street projectwill replace a three-storyRodeway Inn at the site andis expected to begin con-struction sometime this year,with completion tentativelyscheduled for mid-2011.

“It’s a great location; it’spretty much on top of down-town,” said Joseph Wong,principal with San Diegoarchitecture firm JJoosseepphhWWoonngg DDeessiiggnn AAssssoocciiaatteess.“We hope that it will be agreat addition to the neigh-borhood.”

The Centre CityDevelopment Corp.approved the project in lateJanuary, according to theCCDC Web site, but the eco-nomic environment and theslower hotel market causedFloco and his firm to delaythe start of construction.

“For us, it’s the timing,”Floco said in a phone inter-

Central

20092009

www.sddt.com

SOARINGsddt.com/soaring09

SOARING Dimensions

See 719 Ash on 8

Office/industrial projects stall;brokers hope for better leasing

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Following delay, 719 Ash Street projectto begin construction

See Office/industrial on 4

2 THURSDAY, AUGUST 27, 2009 • Central San Diego • THE DAILY TRANSCRIPT

3THURSDAY, AUGUST 27, 2009 • Central San Diego • THE DAILY TRANSCRIPT

UCSD cardiovascular center nation’sfirst hospital to target LEED certification

BByy MMOONNIICCAA UUNNHHOOLLDDThe Daily Transcript

The University ofCalifornia, San Diego’sSulpizio FamilyCardiovascular Center will bethe crown jewel of UCSD’sThornton Hospital complex.

The 128,000-square-footbuilding with a jewel box-inspired design will be thefirst hospital in the nation toseek LEED certification fromthe U.S. Green BuildingCouncil, said Randy Leopold,principal architect on theproject.

“We wanted to build it a lit-tle differently, and we werelucky to work with a high-per-forming team committed todoing that,” Leopold said.

Construction is currentlyunderway on the facility,which comes with a total pricetag of $227 million.Contractor DDPPMMCCoonnssttrruuccttiioonn plans to com-plete the facility in 2010.

The cardiovascular centerwill contain more than 20examination rooms, four car-diac catheterization labs, fouroperating rooms, 24 intensivecare and immediate care beds,imaging labs, clinical researchfacilities and an emergency

department with 18 exam sta-tions.

The building will achieve itsLEED certification throughthe incorporation of energy-efficient lighting includingLED surgery lamps, low-flowwater fixtures and irrigation, awhite roof and the building’sproximity to public trans-portation.

The facility’s orientation onits site will also earn LEEDpoints. The cardiovascularcenter is oriented to maximizenatural light while providingshade to minimize the needfor air-conditioning to coolthe building.

It is very difficult for hospi-tals to achieve LEED certifica-tion because of the type ofequipment they require,Leopold said. Hospitals areenergy intensive buildings,between all of the surgery andother necessary medicalequipment. Emergencydepartments are in use all thetime and thus never enter aperiod of lower consumption,as most institutional build-ings do at night.

“They don’t fit the notion ofan 8 a.m. to 5 p.m. workday,”Leopold said.

The U.S. Green Building

Council has separate standardsin place for different categoriesof buildings; however, there isno guide designed specificallyfor hospital facilities.

The building was designedaround a central courtyardwith a healing garden.Architects meticulouslydesigned the courtyard tocontain rough elements suchas stone and glass thatbecome gradually morerefined moving from outdoorsinto the hospital environ-ment, Leopold said.

Once completed, SulpizioFamily Cardiovascular Centerwill be the region’s only uni-versity-based fellowship train-ing program in clinical cardi-ology and cardiovascularresearch. The program’s goalis to develop cardiologistswith advanced experiencewho are committed to becom-ing accomplished scholarsand leaders. In 2007, morethan 450 applicants competedfor only four open positions.

The center is named forRichard and Maria “Gaby”Sulpizio, who donated $10million to the cardiovascularcenter.

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McCarthy begins workon new Scripps facility

MMccCCaarrtthhyy BBuuiillddiinngg CCoommppaanniieess IInncc.. has preconstructionefforts under way for the new 382,000-square-foot ScrippsCardiovascular Institute and the adjacent 26,000-square-foot Central Energy Plant on the Scripps MemorialHospital La Jolla campus at 9888 Genesee Ave.

McCarthy was engaged by Scripps Health-San Diego asthe design assist general contractor for the $340 millionconstruction project. Rich McMahon of JJaaccoobbss EEnnggiinneeeerriinnggis the executive construction manager on behalf of ScrippsHealth. The brick and glass, 10-level, steel-framedCardiovascular Institute will include a basement, interme-diate mechanical level and rooftop mechanical level. Thisexpansion to Scripps Memorial Hospital La Jolla willaccommodate 60 beds on two ICU levels, 108 beds on threemedical surgery levels, six operating rooms, fourCAATH/EP labs, one sterile processing department andone imaging department.

Additionally, a tunnel will be built to connect the base-ment and ground levels to the existing hospital.

The new Central Energy Plant will be a three-level, cast-in-place structure with two of the levels located belowgrade. The energy plant will provide the air conditioning,heating, medical gas, steam, fuel and waste storage, andemergency generators for the hospital.

Construction is scheduled to begin in July 2011 and isslated for completion January 2015 with tenant move-in byApril 2015.

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Financing biggest issue in Convention Center expansionBByy DDOOUUGG SSHHEERRWWIINN

The Daily Transcript

Most everyone can agreethat the San Diego ConventionCenter needs to be expanded.The more difficult question ishow will it be financed.

A citizen’s task force, con-vened by Mayor Jerry Sandersin January, has been investi-gating and debating that veryissue.

The task force has reviewed10-12 financing options avail-able, looking at how otherregions funded theirConvention Centers.

“Other cities probably havenot been in the kind of finan-cial constraints that we are,either by the time in our econ-

omy or the issues that SanDiego has been dealing with,”said Cheryl Kendrick, taskforce co-chair and formerchair of the San DiegoConvention Center board.“This isn’t a time when peopleare building a whole lot oflarge buildings.”

Some of the financingoptions include an incometax, a property tax, an on-sitehotel or the creation of atourism marketing district.

One option that isn’t on thetable, however, is the use ofcity operating funds.

“I think it’s going to have tobe people who have a vestedinterest in the ConventionCenter,” said Phil Rath, Mayor

Sanders’ deputy director ofpolicy, adding, “Business ishard right now, so if you askedthem today, I don’t know whatthey’d say.”

The Center City Develop-ment Corp., whose district bor-ders the Convention Center,could be asked to contribute toan expansion.

“It’s technically outside oftheir area, but it’d be prettyhard to argue that that theConvention Center doesn’tcreate a whole lot of value andwealth in property tax rev-enues,” Rath said. “That’s hotproperty down there, and theConvention Center helps.”

The Port of San Diego isanother stakeholder whoseproperty value would benefitfrom a larger ConventionCenter.

Perhaps the most viableoption for funding the expan-sion is through an increasedtransient occupancy tax(TOT), which is a tax on hotelroom stays.

“There’s a clear nexusbetween hotel room nightstays in downtown and theConvention Center,” Rathsaid.

The task force also haslooked at a restaurant tax,likely localized to a zonearound downtown.

“It’s wrestling with thoseissues of fairness, equity andnexus that are really the trickto the whole financingscheme,” Rath said. “But Ithink it’s going to take a com-bination of all the sources toget it done.”

The cost of expansion isestimated to be $700 million.It would add 1 million squarefeet of space, including200,000 square feet of exhib-it space. The current facility is2.6 million square feet with615,701 square feet of exhibitspace. That figure includes90,000 square feet of exhibitspace in the sail pavilion onthe top floor.

The Convention Centeropened in 1989 and wasexpanded in 2001. It has host-ed more than 4,000 eventsand generated $17 billion ineconomic impact.

Last year alone, theConvention Center had a $1.8billion economic impact to theregion and paid nearly $31 mil-lion in tax revenue to the city.

“We wouldn’t be here if wedidn’t have the marketdemand to build an expan-sion,” said Steven Johnson,vice president of public affairsfor the San Diego ConventionCenter. “We turn away a year’sworth of business (now). Itshows how strong San Diegohas become as a conventionand meeting center.”

The facility also supports12,000 jobs, directly and indi-rectly.

“I think there is a sense thatan expanded ConventionCenter would be an economicboon to the city and to theregion,” Kendrick said. “Andthat not expanding would bevery costly in terms of revenueto the city and to the region.”

Officials who host thebiggest annual convention inSan Diego are already feelingpinched for space.

Comic-Con International,which has been in San Diegosince its inception in 1970,drew approximately 125,000people to the ConventionCenter last month.

The group is signed up to beat the San Diego ConventionCenter through 2012, but

then could be free to leave.“That’d be a huge economic

loss to the region” if Comic-Con left, according toJohnson. “Those four days arethe highest occupancy days inthe county of San Diego.”

Sanders would really like tosee the Convention Centerexpansion happen. The taskforce was scheduled to meettwice in August and is expect-ed to present its recommen-dations to the mayor bySeptember.

“The Convention Center isone of the few assets we havethat pumps out money,” saidRath. “We run a lot of thingsthat are financial losers. That’sokay, but we need a fewengines, too, and that onemakes money.”

The Convention Centerexpansion could eventuallymake its way to the ballot box,depending on what type of taxis required. It could be arestrictive vote just for localbusinesses or a citywide vote,Rath said.

Once financing gets solved,the permit process could be

See Expansion on 4


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Mayor hopes to move downtown library project forwardBByy DDOOUUGG SSHHEERRWWIINN


In September, San DiegoMayor Jerry Sanders will askthe City Council to approvemore funding for a contractorto take bids on the long-pro-posed downtown library.

TTuurrnneerr CCoonnssttrruuccttiioonn, the“construction manager atrisk” for the project, originallyestimated the price tag for thenew building would be $185million.

That was four years ago anda lot has changed, includingthe onset of a severe econom-ic downturn and San Diego’spension problems.

Still, officials in the mayor’soffice are hopeful that thedowntown library can beerected.

“People are hurting forwork right now,” said PhilRath, Sanders’ deputy direc-tor of policy, admitting thatconstruction costs have swungwidely during the last severalyears. “It’s a good biddingenvironment.

“We don’t really know (thenew cost). What we’ve decid-ed is, this project has come sofar, it’d be a real waste of timeand money to do another esti-mate just to have an estimate.It doesn’t cost that muchmore to just bid the thing outand see if it comes in lowenough that the funds we havecan actually build it.”

Critics question the timingof spending millions to build anew library while the city cuts

back on other services. Butproponents feel the currentfacility is outdated and a newlibrary could further down-town’s renaissance.

“I know a lot of familiesaren’t comfortable visiting thecurrent library,” said ToddRuth, a member of the CenterCity Development Corp.’s edu-cation task force. “They’ll goto Mission Valley or PointLoma, which is sad becauseit’s such a great resource. Thechildren’s room is enormous.”

Todd Bulich, an adjunctprofessor with CaliforniaSchool of Law and presidentof his own real estate compa-ny, said it’s a tough politicalclimate for such a project.

“What is needed is to haveleaders take a leap of faith andsay why we need it and why itwill help downtown,” he said.“What we need is a moraleboost. San Diego has gottenhit from all sides. We needcivic leaders to feel goodabout it.”

The city has several fundingsources it can tap if it decidesto go ahead with the project.The question is, will it beenough?

There’s a $20 million grantfrom the state of California,made available when statevoters passed the LibraryBond Act in 2000.

The city is on notice, how-ever, that if it doesn’t achievecertain benchmarks byAugust 2010, the money couldbe reallocated to another city

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in California. The City Councilwill need to have approved therelease of bids by Nov. 15,2009, and begun constructionof the project by Aug. 1, 2010.

The city also could receivean additional $20 million inProposition S funding from

the San Diego Unified SchoolDistrict, which wants to leasetwo floors of the building for acharter high school. The twosides have publicly supporteda statement of intent and areworking on a formal lease.

As one of the benchmarks

Work complete on finalLiberty Station office building

Contractors have completed the final building in Liberty Station’s office district.In May, contractor BBYYCCOORR completed the 109,102-square-foot Liberty Station Building

902 located in the 361-acre redevelopment area previously occupied by the Naval TrainingCenter.

Designed by KKMMAA AArrcchhiitteeccttuurree && EEnnggiinneeeerriinngg,, the building is expected to achieve LEEDGold certification.

The $10.8 million building is the seventh and final building in a 22-acre commercial site.The building stands three stories high and features arched windows, tile accents, stucco

walls and clay-tiled roofs, allowing it to fit in with the adjacent historic district buildings.In the interest of achieving the LEED certification, the project included sustainable features

such as wood certified by the Forest Stewardship Council, large windows to allow natural lightto pass into the building and low-flow water fixtures.

Parking spaces are reserved for low-emissions and fuel-efficient vehicles. The buildingincorporates only low VOC paints, coatings and sealants.

The project incorporated only materials manufactured within a 500-mile radius of LibertyStation, in order to reduce the environmental impacts of transportation.

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In addition to the office district, Liberty Station incorporates 349 single- and multi-familyhomes, two hotels, retail stores and 125 acres of open space.

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Within two years of the dot-com bust and Peregrine’sdeparture, the space wasrefilled with law firms,accounting firms and others.Not only that, but because ofthe buildings’ strategic loca-tion near the junction ofInterstate 5, they were amongthe first in the area to chargelease rates of more than $4-per-square-foot.

Now with the recession andstill relatively high lease rates,the spaces have been empty-ing once more. Del MarHeights posted a 20.3 percentdirect vacancy rate and a 28.4percent availability rate as ofthe end of the second quarter.While the submarket man-aged a very modest 9,200square feet of positive absorp-tion in the second quarter, theleasing was off by about65,000 square feet for the firsthalf of the year and had a sig-nificant amount of negativeabsorption prior to the start of2009.

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Office/industrialContinued from Page 1

the next challenge. TheCalifornia CoastalCommission will have toweigh in on any expansion,but Rath is confident some-thing can be worked out.

“To me, and this is my ownpersonal opinion, the busi-ness case for whether to buildthe expansion is as simple asthey come,” he said. “We havea kind of unending demandfor space here. Orthopedicsurgeons, Comic-Con, who-ever you are, you want tocome to San Diego. You don’twant to go to Buffalo orSeattle.”

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ExpansionContinued from Page 3

for keeping state funding, thecity must complete a leaseagreement with the schooldistrict by May 1, 2010, alongwith a statement of the viabil-ity of the project and its budg-et.

California Western’s Bulichsaid the possibility of housinga charter school has reallyrevived the library project andmakes it more enticing.

“For a long time, the barrierto living downtown is wheredo your kids go to school,”Bulich said. “This is an oppor-tunity. It can spur economicgrowth. There’s so muchexcess inventory, it’s a chanceto soak that up. If you build updowntown, you get a morefamily atmosphere and (peo-ple) have reason to comedowntown.”

The San Diego LibraryFoundation, meanwhile, hasraised $27.5 million in privatedonations for the project.

The biggest chunk of fund-ing is $80 million of redevel-opment money from CCDC,giving the city a potential of$147.5 million for the project.While the CCDC money canbe used for projects other thanthe library, it can’t be usedoutside the downtown area.

Turner Construction hasagreed to provide a guaran-

teed maximum price (GMP).If it goes over the estimate, thecompany will absorb the loss.

“That works well in this sit-uation because we have a veryfinite amount to play with,”Rath said.

Rath said the city should geta GMP by next summer,allowing officials to make thedecision on whether they cango ahead with the project.

Turner Construction is nottied to the original estimate of$185 million. It hopes to takeall the plans and bid them outagain this fall.

The library is one of severaldowntown projects the city istrying to shepherd this year,including a new city hall andan expanded convention cen-ter.

“Each project stands on itsown, and each project needsto be addressed in somemanner,” said Darren Pudgil,a spokesman for the mayor’soffice. “The mayor has set avery ambitious agenda. Hewants to move these for-ward.”

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LEED-certified Hotel Indigo opens ahead of scheduleBByy MMOONNIICCAA UUNNHHOOLLDD


Downtown’s latest boutiquehotel has enjoyed better-than-expected bookings since itopened July 13, nearly onemonth ahead of schedule.

Hotel Indigo San Diego, thecity’s newest urban hotel withan eco-conscious twist, expe-rienced occupancy levels 140percent greater than expectedin July, said Robert Arends, aspokesman for Hotel IndigoSan Diego.

The hotel is the newestaddition to the chain of trendyboutique hotels owned byIInntteerrCCoonnttiinneennttaall HHootteellssGGrroouupp (NYSE: IHG), whichoperates several major chainsincluding Holiday Inn,Crowne Plaza and StayBridge;and the first owned by theconglomerate to achieveLEED certification, the indus-try standard for recognition of

sustainable buildings admin-istered by the U.S. GreenBuilding Council.

The hotel is just the 17th inthe nation to achieve LEEDcertification, and the ninth inthe state, Arends said.

“As a global company,Intercontinental Hotels isalways looking for ways to bean example of corporateresponsibility,” said IHGspokeswoman CarolineCounihan. “Utilizing greentechnologies in a responsibleway is an important part ofthat goal.”

The 12-story, 170,000-square-foot building includes210 guest rooms, 35,000square feet of undergroundparking space and 1,200square feet of meeting space,said John Torchiana, vicepresident of project develop-ment and technical services.Views of Padres games at

nearby Petco Park are avail-able from the building’s upperfloors.

Green building materialsincorporated in the hotelinclude recycled hardwoodfloors, ceiling materials with-out volatile organic com-pounds, and a cooling systemthat utilizes zero CFC-emit-ting refrigerants. In order tooptimize energy efficiency, thedesign allows for ample natu-ral lighting during the day andthe application of a glaze willprovide additional insulation,Torchiana said.

The building’s living roofaids in cooling and helps filterpollutants from runoff beforeit enters the city’s stormdrains, Torchiana said. Theroof has been sown withCalifornia-native plants toreduce water usage. Guestswill be able to view the rooffrom the ninth-floor terrace.

The hotel has been in theplanning phases since 2006,Counihan said. BecauseLEED certification is such animportant goal, expert DrewGeorge served as the hotel’sLEED project manager.HHeennsseell PPhheellppss CCoonnssttrruuccttiioonnCCoo.. is the general contractoron the project.

Hotel Indigo chose the loca-tion at the corner of Ninthand Island Avenues in partbecause of the goal to gainLEED certification for theproject, Counihan said. Thehotel earned many of itspoints toward certification bydemolishing several one-storybuildings on the site and recy-cling the materials. The hotelalso earned points for its loca-tion on bus routes, givingguests easy access to masstransit, Counihan said.

See Hotel Indigo on 8


Construction, upgrades continue at community college campusesBByy EELLIIZZAABBEETTHH MMAALLLLOOYY


The San Diego CommunityCollege District is taking fulladvantage of funding grantedby voters in recent years,building state-of-the-art facil-ities all over its campuses.

The projects include a mul-tipurpose building where 50-year-old “temporary” class-rooms once stood, and an ath-letic center where both theschool’s sports teams and thecommunity can play. Theprojects were largely designedwith their surrounding com-munities involved, and arealso striving for LEED certifi-cation, meaning they are envi-ronmentally friendly.

“We think we’re the bestbargain in town,” said UrsualKroemer, communicationsdirector for the projects. “Youget a quality education andthese are state-of-the-artfacilities.”

The revamping of theCommunity College District isa result of the voter-approvedPropositions S and N in 2002and 2006. The propositionsgranted a total of $1.55 billionin funding to construct newfacilities.

The biggest projects includenew or improved buildings atthe City, Mesa and Miramarcampuses, as well as theContinuing Education pro-grams in Point Loma and on

Ocean View Boulevard.

CCiittyy CCoolllleeggeeAt City, the college is build-

ing a career technology centerand general-purpose class-room building, as well as a700-spot parking structure.The career technology centerwill house the school’s nursingprogram, cosmetology, pho-tography and digital arts. Thegeneral-purpose classrooms,on a recently acquired blockof land at 16th, 17th Broadwayand C Street downtown, willhold arts and humanities andbusiness technology class-rooms.

“City College is, I would say,maybe the most dramaticallytransformed,” said Kroemer.

The general-purpose class-room building is near publictransportation, and has beendesigned by RRooeesslliinnggNNaakkaammuurraa TTeerraaddaa AArrcchhiitteeccttsswith particular attention tothe existing neighborhood.

City College is also getting aremodel of its AcademicSuccess Center and the P-Building at the Harry WestGymnasium.

MMeessaa CCoolllleeggeeThe Mesa College campus’

Allied Health building isscheduled for completion inNovember. That building willhouse the school’s radiologicaltechnology and dental and

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medical assisting programs.The program will transformthe east campus gateway forthe Mesa Campus, making iteasier to find the buildings.There is also a new 1,100-spotparking center.

There is also a new policesubstation for the college’spolice department, and an allweather track and field facil-ity.

MMiirraammaarrThe largest of the San Diego

Community College Districtcampuses, Miramar for yearsconsisted largely of two mainbuildings, and later “non-per-manent” classrooms thatremained on site for years.

The highlight of the workbeing done at the Miramarcampus is the Hourglass ParkField House. Finished lastspring, the mixed-use build-ing includes classrooms, lec-ture halls and office space, aswell as athletic facilities thatKroemer said are on par withany four-year university.

“It serves as a home to ourstudent athletes there, but(it’s) also a great home for res-idents of the Mira Mesa area,”she said. “Even as we weredoing construction, you’d seelittle kids and their parentsfrom Mira Mesa wanderingover to take swimming les-sons.”

In addition to the FieldHouse and infrastructurework, Miramar has new class-rooms for arts and humani-ties, business technology and

See Colleges on 6

Resale detached home marketin upswing, while newattached units largely unsold

BByy JJEENN LLEEBBRROONN KKUUHHNNEEYYThe Daily Transcript

The single-family detachedhome market may tell the taleof what is going on in most ofSan Diego County’s homesales stories, but for the city ofSan Diego, downtown condoshave become the 20-story ele-phants in the room.

There are 43 different sin-gle-family attached projectsthroughout San DiegoCounty’s central region andmore than 1,000 unsold units,according to MMaarrkkeettPPooiinntteeRReeaallttyy AAddvviissoorr’s ResidentialTrends second-quarter report.

With that many units on themarket, it could be difficult tosell them. However, totalattached inventory hasdropped for the eighth con-secutive quarter.

If the trend continues, itcould create a hunger for anincreasingly small pool ofproperties, but so far this year,

that has not been the case.According to DDaattaaQQuuiicckk,

new condo sales have beendown 52 percent during thefirst half of this year com-pared to last.

Also, the real estate climatecould change dramaticallydepending on what happenswith downtown’s largestdevelopment, Vantage Pointe.

While it was supposed tohave 679 units and be readyfor occupancy this spring, thebuilding was not completedon time and ended up refund-ing the deposits of hopefulresidents.

The project is now in limbowith regard to how it will pro-ceed. The colossal buildingcould be divided into fivephases in order to meet occu-pancy requirements set out bythe state.

Additionally, Vantage

Work progresses on East Village complexConstruction of the six-story, 170,000-square-foot mixed-use Parkside Apartments in

downtown San Diego’s East Village is 70 percent complete.Designed by BBeennssoonn && BBoohhll AArrcchhiitteeccttss IInncc.. and developed by WWaakkeellaanndd HHoouussiinngg &&

DDeevveellooppmmeenntt,, the affordable family-oriented residential development was built on the site ofThe East Village Community Church, which is undergoing a redevelopment of its own.

Parkside is located on the north side of Island Avenue between 13th and 14th Streets and isanticipated to be complete by early 2010.

“Now that the framing has been completed and the building wrapped, the apartments andthe church are beginning to show their real personalities,” said architect Randall Bohl.

Parkside, along with the redevelopment of East Village Community Church, was developedby Wakeland through two separate partnerships with the church, the Redevelopment Agencyof the city of San Diego, as well as other funding sources. Both projects are designed by Benson& Bohl Architects allowing for the two projects to maintain a similar and cohesive design aes-thetic.

Parkside provides a total of 77 one-, two- and three-bedroom affordable housing apartmentsfor low and very low-income families.

The apartment units sit atop a new two-story 11,000-square-foot facility for the East VillageCommunity Church. The project includes two levels of subterranean parking. The projectincorporates an art piece at the corner of Island and 13th designed by artist Nina Karavasiles,which includes a series of three-dimensional organic branching forms rising from street levelto over 40 feet in the air. Parkside is expected to receive a LEED silver certification. The designteam engineers included TThhee PPooggggeemmeeyyeerr DDeessiiggnn GGrroouupp (structural), FFaarrdd EEnnggiinneeeerrss(mechanical and electrical) and NNaassllaanndd EEnnggiinneeeerriinngg (civil). IIvvyy LLaannddssccaappee AArrcchhiitteeccttss was thelandscape architect. HHaarrppeerr CCoonnssttrruuccttiioonn of San Diego is the general contractor.

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See Detached homes on 6


Pointe may end up renting outmore than a quarter of itsunits.

The project is in such a statethat MarketPointe did not listit at all in its ResidentialTrends second-quarter report.

The average weighted priceof a new, single-familyattached home in San Diegowas $440,789 in the secondquarter of 2009, which is a 4percent decrease from the firstquarter, but a 2 percent year-over-year increase over 2008’ssecond quarter.

There are currently no newsingle-family detached homeprojects in central San Diego.

The resale market tells adifferent story of central SanDiego from the new homemarket, according to statisticsfrom the North San DiegoCounty Association ofRealtors.

The single-family detachedresold home in central SanDiego made a nearly 10 per-cent jump in median pricefrom May to June. The Junemedian of $380,000 is stilldown 8 percent from June2008.

However, Jason Hall, bro-

ker and owner of RREE//MMAAXXAAssssoocciiaatteess in San Diego, saidit is important for buyers torealize there are numeroushousing “markets” in SanDiego that are experiencingdifferent levels of activity atdifferent price points.

“In most parts of the countyin the price range that wewould consider for more first-time buyers, under $500,000or the $350,000-$400,000area, it’s multiple offers onalmost everything,” he said.

“In La Jolla, though, thingshave been pretty slow.”

Lower-priced areas likeLogan Heights, for example,have seen sales in the areaincrease from 65 sales in 2008to 116 so far this year.

The number of detachedhomes sold in San Diego’smetro region rose everymonth so far in 2009, with theexception of a slight dip inMay.

Still, from January to Junein San Diego’s metro area,2009 is outpacing last year,with 2,350 detached homessold compared to 1,821 in2008.

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Detached homesContinued from Page 5

mathematics, an expansion ofthe automotive technologytraining center, an aviationtechnology renovation and anew student union that’s stillin the design phase.

WWeesstt CCiittyyAt the West City campus in

Point Loma, the schoolreplaced a collection of class-rooms that were built in the1950s and never intended tobe permanent. The campushas been deemed a “campus ofexcellence” for the district’shospitality and culinary artsprograms, and has a new mul-tipurpose building for class-rooms.

Built with recycled prod-ucts, designed to be naturallyclimate controlled and usingbathroom fixtures that uselow amounts of water, thebuilding is efficient to run,saving the district — andtherefore taxpayers — money.

“Far and wide we find thatpursuing that LEED certifica-tion not only gives us asmarter building, a greenerbuilding, more efficient, butoverall the cost is less too,”Kroemer said.

SSkkiillllss CCeenntteerrYet another massive project

is the Skills Center at theEducational CulturalComplex, or ECC. This is thedistrict’s largest campus forcontinuing education in SanDiego. Located on OceanView Boulevard, the ECChouses the majority of thecontinuing education staff,including the president.

The building also housesautomotive technology train-ing, upholstery, business tech-

nology and other educationprograms. The district is aim-ing for a LEED rating of atleast silver on its projects, butthe ECC Skills Center is likelyto receive a LEED Gold rat-ing, thanks to photovoltaicsolar power panels.

Most of the buildings havebeen completed close to theirtimelines, and cost overrunshave been within acceptableestimates, Kroemer said. Afew have even come in underbudget.

Kroemer attributed much ofthis to the District using aconstruction manager multi-ple prime method, whichallows the school to choosesubcontractors. A great deal ofinfrastructure work wasrequired in addition to thenew buildings, from sewers toseismic retrofits, and Kroemersaid choosing its own subcon-tractors helped the districtsave money and use morelocal, diverse workers.

The down economy hasbeen beneficial for the district,as it has been able to takeadvantage of lower commodi-ties costs and bids. While thestate’s financial problems willhave an effect on the district’sability to fill these new class-rooms and offer more educa-tional programs, Sacramento’stroubles won’t stop construc-tion.

“This is an opportune timefor our taxpayers funding thisbond, to utilize this kind oftrend in the economy where alot of the (subcontractors) arebidding projects for less thanthey might just because theywant to keep their businessesgoing,” Kroemer said.

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CollegesContinued from Page 5

MedImpact new headquarters blendsunique look, LEED certification

BByy EELLIIZZAABBEETTHH MMAALLLLOOYYThe Daily Transcript

Fred Howe, president andchief executive officer ofMMeeddIImmppaacctt, told developerColton Sudberry that hewanted his company’s newheadquarters to look likenothing else in San Diego.

“We spent a lot of time look-ing at all types of differentstone and glass and trimmaterials and ultimately justfell in love with the stone that

was selected,” said Sudberry,whose company SSuuddbbeerrrryyPPrrooppeerrttiieess worked asMedImpact’s developer. “Itwas unique and fit in wellwith the surrounding area.”

The stone that will adornthe MedImpact building isfrom India, and will cover theoutside of the partially LEEDcertified building, scheduledfor completion in January.

It’s the most visibly differ-ent part of the new

MedImpact headquarters,but the building is alsounique in that it will be partof a multiple use project withoffice, retail and open civicspace. Also, the shell andcore of the MedImpact build-ing will be LEED Gold certi-fied, according to ChrisHeim, project director andmanager of the project forgeneral contractor RReennooCCoonnttrraaccttiinngg.

LEED (Leadership in

Energy and EnvironmentalDesign) Gold certificationmeans much of it will be builtwith recycled materials, wastewill be diverted from the proj-ect, and certified wood and anapproved indoor air qualitymanagement plan will beused. LEED is an internation-ally recognized building certi-fication system under the U.S.Green Building Council thatawards buildings a certainlevel of environmental friend-

liness and energy efficiency.“It is really unique to

MedImpact’s needs,” Heimsaid. “The owner ofMedImpact wanted his build-ing to be unique and not looklike anything else in town.”

MedImpact did not respondto the Transcript’s request forcomment on this story, butSudberry and Heim bothspoke about it.

The entire project is on a30-acre site in Scripps Ranchon Scripps Gateway Court.

The main building, whichwill serve as MedImpact’sheadquarters, will be a six-story building of about148,500 square feet.According to Sudberry,MedImpact has about650,000 square feet to buildon. It could have all beenClass A office space, but thecompany plans to build450,000 square feet of officespace and 380,000 squarefeet of retail.

It’s not yet clear who willrent or lease the remainingoffice space, Sudberry said.

The office space will beadjacent to retail space, whichwill be in the environmentalreview process for another 18to 24 months, but ultimatelySudberry said it will include“upscale” civic spaces like aplaza and other amenities, aswell as possibly restaurantsand shops.

Some of the amenities help-ing MedImpact’s headquar-ters earn Gold certificationsfor the shell and core include:A walkable neighborhoodwith restaurants, banks and afitness center; 35 preferredparking spaces for low emit-ting and fuel efficient vehi-cles; 73,000 square feet ofvegetated space; onsitestormwater treatmentthrough the use of bio-reten-tion basins; a cool roof thatreduces air conditioning useand costs; low-flow fixtures;an efficient irrigation system;high-efficiency air filters; anda high amount of daylightingthroughout.

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view. “We wanted to hold offuntil there’s more visibilityand clarity. More than any-thing, it was important to notrush into it.”

Once completed, 719 AshStreet will house both theHilton Garden Inn andHomewood Suites by Hilton,providing both traditionalhotel services as well as spacefor extended stays.

The two hotels will haveseparate lobbies, floors andrestaurants, but they willshare meeting space andrecreational space — princi-pally a sky terrace that willinclude a swimming pool, spaand exercise area, Wong said.

“It’s a very interesting con-cept,” he said of the mixed-use facility, adding that thefloor plan is very “efficient.”

The building has beendesigned to meet LEED(Leadership in Energy andEnvironmental Design) cer-tification criteria, whichrequires certain efficiencyand eco-friendly standards.

LEED ratings are based ona point system, resulting infour levels of certification:certified, silver, gold andplatinum.

Those involved with theproject are hoping that theAsh Street hotel will garnermore than just a basic certifi-cation, Wong said.

The building’s lighting,windows, exterior material,and heating and cooling sys-tems are all energy efficient.The laundry systems andplumbing fixtures eitherrecycle water or minimizewater waste.

All paints and finishes to

be used contain low amountsof volatile organic com-pounds, or VOCs, which emittoxic gases and vapors.

The green roof will beplanted with vegetation,designed to trap and capturerainwater. The position of thebuilding itself is alsodesigned to minimize theheat island effect, in which abuilding absorbs greatamounts of heat and creates agreater demand for air-con-ditioning.

The building also isdesigned to mesh with itsdowntown environment. Thelobbies, restaurants andstorefronts all face the streetbehind tall windows on theground level.

“It’s very transparent,”Wong said. “How the exteriorinteracts with the groundlevel is one of the importantaspects of a mixed-use proj-ect.”

The building will likelyincorporate some public arton the outside as well. Aneffort was also made toensure the building was not“bulky” and complied withCCDC downtown designguidelines.

The building’s most dis-tinctive feature is its west-ward-facing curve, designedto suggest the image of awave rolling into shore.

“That would be part of theskyline to the east,” Wongsaid. “We feel that has a cer-tain dynamic-ness. ... Wewant people to say, ‘Look,what is that?’ It’s not a typicaloffice building or a typicalcondominium.”

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719 AshContinued from Page 1

The location is ideal forattracting both business andleisure travelers. Located inthe Gaslamp District, guestscan walk to a multitude ofrestaurants, as well as PetcoPark. The hotel is also lessthan a mile from the SanDiego Convention Center.

Aside from encouraging useof public transportation,Hotel Indigo offers incentivesto guests who reduce theircarbon footprints by drivingfuel-efficient cars. Guestsdriving fuel-efficient vehiclesare charged a reduced rate forparking, and the hotel pro-vides designated parkingspaces for flex cars, whichserve as a green alternative to

car rental, Torchiana said.Each guestroom is decorat-

ed with plush comforters,hardwood floors with arearugs and spa-inspired show-ers.

The building also includes arooftop terrace, casual diningrestaurant, Gold Bean and thechic Phi Bar. Though thespelling differs, the bar isnamed after Fibonacci num-bers, the formula for divineproportion in nature. Thehotel is decorated with trees,shells and a variety of naturalicons, furthering HotelIndigo’s theme: “It’s about bal-ance with nature,” Counihansaid.

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Hotel IndigoContinued from Page 4


Close-up: Tee Ness

Continuity important in Caterpillar dealership family businessBByy PPAADDMMAA NNAAGGAAPPPPAANN

Special to the Daily Transcript

Growing up in a militaryfamily whose home base wasCamp Pendleton, Tee Ness,the president and chief exec-utive officer of HHaawwtthhoorrnneeCCAATT, considers himself anative San Diegan.

Hawthorne CAT has beena CCaatteerrppiillllaarr (NYSE: CAT)dealer for San Diego Countyand Northwestern Baja since1956. Founded by J.B.Hawthorne and his son Tomin 1948 during the boom fol-lowing World War II, thecompany originally waslocated in Los Angeles andknown as L.A. Tractor andEquipment. When awardedthe San Diego Caterpillardealership, the companybecame HawthorneMachinery Co. The companynow has 525 employees andexpects revenues of $220million to $250 million thisyear.

Tom Hawthorne grew thecompany steadily andexpanded the dealership’sgeographic territory toHawaii and the NorthernMariana Islands beforehanding the reins over toNess, who is also his son-in-law.

“I got into this businessthe easy way. I married theboss’ daughter and joinedthe company straight out ofcollege,” said Ness, who metDebbie Hawthorne in highschool. The couple also wentto college together atGraceland University inIowa, where Ness got a busi-ness degree with an empha-sis in accounting.

CClliimmbbiinngg tthhee llaaddddeerrHe started as an account-

ant and “saw the light” fiveyears into his career atHawthorne CAT, when herealized that the operationsside was a lot more fun thanaccounting.

Ness transitioned to theengineering department,

NNeessss

starting out in product sup-port, then moved to salesbefore running HawthornePower Systems, a groupcompany formed in 1972that sells, rents and servicesengines and power systems.It builds and rebuildsengines of all sizes, fromtruck engines to cogenera-tion plants and standbypower.

“It was a good opportunityto learn the business, byworking my way up. Startingout in accounting made iteasy to understand it better,”said Ness, who moved fromrunning the power divisionto becoming the vice presi-dent of the group, then theexecutive vice president andin 1994, the CEO.

Ness said providing con-sistent leadership and conti-nuity are his main contribu-tions to the company —important factors since mostCaterpillar dealerships in theUnited States are familyowned. He creditsHawthorne, who steppedaside completely three yearsago, as having been a pioneerentrepreneur who grew thebusiness to its current level.

“He lent a spark to thebusiness. Today, it’s a chal-lenge to grow the business inthis economy,” he said, refer-

ring to the challenges andcomplexities of multiplegeographic territories anddifferent cultures in eacharea.

EExxppaannddiinngg tthhee tteerrrriittoorryy ttoo HHaawwaaiiii

Until five years ago,Hawthorne CAT’s opera-tions were limited to SanDiego, Tijuana andEnsenada. Then the oppor-tunity to acquire the dealer-ships in Hawaii and Guamcame up and Hawthorne,then 75, took the risk ofexpanding, which meanttaking on a lot of debt.

While Hawaii was a devel-oped territory, it had notbeen fully leveraged, and thecompany focused on devel-oping it to its full potential.The way the islands arespread out necessitated hav-ing branches in each of theislands where the firm does

business, since it would beimpractical to move heavyequipment from one islandto another as needed.

In terms of local business,Ness estimated the compa-ny’s market share is about40 percent to 50 percent ofmachinery sales in SanDiego.

“We are on top of everyproject that our contractorclients are involved in, notjust tractors but alsoengines. We provide quotesfor rentals and equipment tothem when they place bids,”he said.

The recession and slow-down in construction havehad a dramatic impact onHawthorne CAT’s business,Ness said, explaining that hehas witnessed other down-turns but that this one hasbeen far more severe.Equipment sales havedropped by 80 percent dur-

ing the last two years, butthings have balanced outbecause the power systemsbusiness has remainedstrong.

Thanks to military proj-ects in Hawaii, last year wasone of the strongest years forthe power systems division.However, that work has alsobegun to slow down, he said.

PPiieecceess ooff tthhee ppiieeMachinery and engine

sales comprise 40 percent to45 percent of the whole piefor Hawthorne, followed bysales of parts and servicethat amount to 30 percent to40 percent of revenues.Rentals, which have seensimilar declines to machin-ery sales, make up the bal-ance.

“I think we’ve been fortu-nate to hold our marketshare, thanks to Hawaii,which has been stronger

than the local markets,” Nesssaid.

Hawthorne CAT has hadseveral layoffs since therecession began, startingwith a major downsizing inMay 2007, followed by small-er ones last year and thisyear. The company has gonefrom about 850 employees to525, with about half of themworking in its San Diegooffices. The company hasclosed three out of six rentaloffices in the county.

Revenues were at a high of$385 million in 2006.

“I don’t think anyone hereanticipates a major uptickanytime soon. We’ve posi-tioned everyone here toexpect a slow rest of the yearand even a slow 2010,” Nesssaid.

Military projects havebeen one of the few bright

Groundbreaking kicks off airport expansion projectBByy CCAARRLLOOSS RRIICCOO


The San Diego skies couldsoon be filled with more air-planes and travelers as arecent groundbreaking cere-mony kicked off constructionof “The Green Build,” theexpansion project of Terminal2 at the San DiegoInternational Airport.

The project will involveadding 10 new airline gates, adual-level roadway for arriv-ing and departing passengers,new check-in counters, anovernight aircraft garage,taxiway improvements, newshops and restaurants, moreholding areas at the gates andimproved security check-points for domestic and inter-national flights.

In addition, new USO facil-ities will be built just west ofTerminal 2, and the project isnot expected to cause any clo-sures to Lindbergh Field.

“This is the most ambitious

improvement project everundertaken at San DiegoInternational Airport,” saidSan Diego County regionalAirport Authority presidentand CEO, Thella F. Bowens.

Construction costs are esti-mated around $865 millionwith the total cost of theentire project at more than $1billion, according to the SanDiego Airport Authorityboard’s acting chair, Robert J.Watkins. It is funded with rev-enues generated by the airportand Federal AviationAdministration grants anduses no taxpayer dollars.

The Green Build, which isthe official name of theTerminal 2 expansion project,formerly known as theTerminal DevelopmentProgram, is called so becausethe Airport Authority wantsto highlight Lindbergh Fieldas an environmentally friend-ly, sustainable facility.

“We are building facilities,

but these new facilities reallyare reflective of our commit-ment to sustainability in thecommunity,” said Bowens. “It’snot only a sustainable project,(but) it will also bring lots of‘green’ acts into San Diego interms of economic impactsthrough the jobs that (will) becreated at the new facility …”

The more than 400,000-square-foot expansion projecthas been designed to at leastmeet LEED silver certifica-tion with features such asdrought-tolerant landscape;water-saving fixtures; exteriormaterials that allow for natu-ral light to enter the buildingand reflect the heat; energy-efficient light fixtures; alter-native transportation accessi-bility; and the use of recycledmaterials.

There are also talks ofinstalling photovoltaic solarpanels on the roof of Terminal2, according to BryanEnarson, vice president of

development for the AirportAuthority.

It is estimated that therewill be more than 1,000 con-struction jobs created duringthe project, but it is notknown how many new perma-nent jobs will be created at theairport.

The newly expandedTerminal 2 is expected to opensometime in late 2012 to early2013 and will be completed intwo phases. It is being com-pleted on an old municipalwaste landfill. The AirportAuthority spent $45 millionto clean up the area.

There is also a pendingreview of permits from theCalifornia CoastalCommission before phase twocan get under way, whichinvolves temporary relocationof Terminal 2 parking andTerminal 2 pedestrian bridgeclosures.

See Ness on 14

See Airport expansion on 10


Project labor agreements under fire from nonunion contractorsAGC files

discrimination suitagainst school district

BByy CCAARRLLOOSS RRIICCOOThe Daily Transcript

The topic of project laboragreements is sensitive one inthe construction industry.

It seems to divide union andnonunion contractors, organi-zations and even public agen-cies.

Over the past year, thistopic has really heated up asseveral public agencies havetalked about placing a proj-ect labor agreement, whichby all accounts favor union

contractors.In San Diego, a project

labor agreement (PLA) is abinding contract with a con-struction group — almostalways the San Diego Buildingand Construction TradeCouncil. The agreement pro-vides guidelines and prerequi-sites on which general con-

tractors and subcontractorsthe public entity can hire.

Union contractors are infavor of PLAs because theagreements give their mem-bers an advantage when itcomes to being awarded jobs.

Tom Lemmon, businessmanager for the San DiegoBuilding and ConstructionTrade Council, has said in thepast these types of agreementshelp contractors get betterwages and benefits like heathand dental care, includingmore money to go into theirretirement system.

“PLAs make sure that localguys get first stab at getting towork on local projects,”Lemmon said.

Nonunion contractors aretypically opposed to laboragreements. They argue thatit discourages them from bid-ding on projects, because themany restrictions and guide-lines force nonunion contrac-tors to either pay into uniondues or join them.

“Nonunion, open shop con-tractors do not like (PLAs)because even though there isnothing in the agreement thatprohibits them directly frombidding on any of the (proj-ects), it does discouragethem,” said George Hawkins,Associated Builders andContractors San Diego presi-dent and CEO, on a previousoccasion.

Hawkins added that typicallabor agreements asknonunion contractors to enterinto a “Schedule A,” whichlimits how many of their ownworkers, general contractors

or subcontractors they canbring onto a jobsite and stipu-lates how much nonunioncontractors must submit intothe union retirement fund.

“Why would nonunion con-tractors want to enter into anagreement with these provi-sions?” Hawkins said.

Currently there is only onelabor agreement in the countyof San Diego. It pertains to allthe work being done onProposition S constructionprojects for the San DiegoUnified School District.

This issue goes back to thesecond half of 2008 when theschool district and both unionand nonunion contractorssupported Proposition S — a$2.1 billion bond measurepassed that calls for all thedistrict’s schools to berepaired and renovated.

During this time, severalhundreds of thousands of dol-lars were donated to the “Yeson Prop. S” campaign, includ-ing $180,000 by the SanDiego chapter of theAssociated GeneralContractors (AGC), which isanti-union.

The group provided themoney because it thought theproposition would bring con-struction jobs to nonunioncontractors.

But after Proposition S waspassed in November 2008,whispers suggested that alabor agreement would beplaced on all work pertainingto the bond measure.

In mid-January of this year,the school board passed a res-olution that only allowed the

San Diego Building andConstruction Trade Council tonegotiate with the district increating a labor agreement.

In late May, the schoolboard approved a labor agree-ment, which it called a ProjectStabilization Agreement. The35-page contract sets the hir-ing guidelines for contractorson any Proposition S project;establishes set wages, hoursand working conditions, andpays for health insurance forworkers; and prevents workerstoppages such as strikes,slowdowns or lockouts, whichnonunion contractors believediscourages them from beinghired.

This is the first school dis-trict in the county to imple-ment some sort of labor agree-ment on taxpayer-fundedconstruction projects.

On July 30, the AGC filed alawsuit against the school dis-trict, because it insists theProject Stabilization Agree-ment discriminates againsthiring nonunion apprentices.

The issue of project laboragreements has also come upon other projects in the coun-ty in recent memory, but hasnot been implemented for onereason or another.

These include the Terminal2 expansion at LindberghField; the proposed civic cen-ter, which has still not beenapproved by the City Council;and the proposed conventioncenter in Chula Vista, a proj-ect that has since been termi-nated.

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Plans for new downtown countycourthouse moving forwardBByy TTHHOORR KKAAMMBBAANN BBIIBBEERRMMAANN


While state officials tackle aprojected $24 billion budgetdeficit, plans are moving for-ward to fund as much as $5billion in courthouse con-struction statewide.

That includes a $1.18 bil-lion, 71-court facility plannedon the KKiinngg SSttaahhllmmaann BBaaiillBBoonnddss block, just north of theHall of Justice, which openedin early 1996.

The facility, planned on themostly vacant downtownblock on C between Unionand State streets, would be thelargest new state courthousein California.

“The courthouse in LosAngeles is bigger, but that’snot on the list,” said MichaelRoddy, San Diego Superior

Court executive officer.Roddy said the Stahlman

block, which has some smallbuildings and a parking lotnow, should be perfect for thestate’s needs.

“By getting the Stahlman(where the business still oper-ates) block we will be able tokeep everything operatingthroughout this process,”Roddy said.

The county donated theproperty several months ago,in lieu of paying millions ofdollars in seismic upgrades tothe original 45-year-old court-house will need to keep thecomplex intact while the latestfacility is being built.

The planned court facility —that would encompass700,000 square feet andmeasure 18 to 20 stories tall —would not only be largeenough to replace the rooms inthe 1960s vintage courthouseacross the street at 220 WestBroadway, but would consoli-date functions of the FamilyCourt at 1501-1555 Sixth Ave.,and the Madge Bradley Courtat 1409 Fourth Ave.

Increased court fees andfines — as per state Senate Bill1407, approved by theLegislature last year — wouldpay for the project.

These funds would bepledged against revenuebonds that are generallymore appealing to investorsthan general obligationbonds.

The Legislature is supposedto vote on the financing plansometime this fall.

San Diego’s original court-house, full of asbestos and lit-erally falling apart in places, is

on a list of critical projects.The possible bad news is

that depending when theproject is actually funded, theLegislature could choose todivert the court fees and finesfor other uses.

“There have been attemptsto divert the money for otherpurposes, but there is a strongdesire to prevent that,” Roddysaid.

Another possible issue isthat while the replacement ofthe courthouse here is deemedas critical, San Diego isn’t theonly courthouse project in thestate.

Several other courthousesfrom Los Angeles toMendocino are also on a criti-cal needs list.

Assuming the project doesgo forward, Roddy said thebig public works developmentwould likely take a year forenvironmental work, includ-ing possible leaking fuel fromold storage tanks, followed byengineering and design.

“We would like to breakground in two to three years,”Roddy said.

As noted by Teresa Ruano, aspokeswoman with theAdministrative Office of theCourts in San Francisco, theproject would take about 28months to construct.

While LLaannkkffoorrdd &&AAssssoocciiaatteess was brought onboard to develop the Hall ofJustice, a developer is notexpected to be part of thisprocess because in RobLankford’s words, “the job willbe done as a straight procure-ment.”

bbiibbeerrmmaann@@ssddddtt..ccoommSSoouurrccee CCooddee:: 2200009900661199ttddhh

The Green Build project is ajoint venture between TTuurrnneerrCCoonnssttrruuccttiioonn,, PPCCLLCCoonnssttrruuccttiioonn SSeerrvviicceess IInncc..and FFllaattiirroonn CCoonnssttrruuccttiioonnCCoorrpp..,, along with KKiieewwiittPPaacciiffiicc CCoo.. and SSuunnddttCCoonnssttrruuccttiioonn IInncc..

According Dan McGuckin,project director for the GreenBuild program, subcontractingworking would become avail-able in the next few weeks.

The expansion is being doneto meet the current demandsof Lindbergh Field and to alle-viate some of the congestion.

“We want to offer our pas-sengers (and airlines) a morecomfortable and enjoyableexperience,” said BruceBoland, Airport Authority

board member and GreenBuild project chairman.

It is estimated by theAirport Authority that by2020, 22 million passengerswill travel through San Diego,an increase of more than 4million passengers over 2008.

“The San Diego InternationalAirport’s current facilities couldnot accommodate this withoutthe Green Build (project),”Boland said, and added heanticipates new airline carriersto come into San Diego becauseof the expansion.

Lindbergh Field currentlyserves 18 airlines on 300 dailyflights to 54 destinations inthe United States, Mexico andCanada.

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Airport expansionContinued from Page 9


Students to enjoy new lounge, studying, dining areas at USD BByy EELLIIZZAABBEETTHH MMAALLLLOOYY


The University of SanDiego’s new $30.4 millionStudent Life Pavilion isscheduled to be open at thebeginning of the 2009 fallsemester, offering studentsopen space for dining andstudying, as well as a studentradio station, multiculturalstation, even a grocery mar-ket.

The 55,000-square-footfacility is designed to be thefirst LEED (Leadership inEnergy and EnvironmentalDesign) certified building onthe USD campus, and is todesigned to provide a distinc-tive gathering space for allstudents to find a sense ofcommunity.

Connected to the existingHahn University Center, thefour-story, SpanishRenaissance-style pavilionfeatures a tower designed toecho the bell tower of TheImmaculata. The pavilion willprovide a range of venues fordining, relaxing and studying.

The architect is KKeevviinn HHoomm

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According to the school, thepavilion will offer studyspaces, lounges, program-ming venues and meetingrooms, featuring video/mes-saging monitors throughoutthe building. Meeting roomswill have smart technologyand videoconferencingoptions, including“Tidebreak” team spot areas,where team members canwork together across com-mon screens and their ownlaptops.

The building also will havecentralized AMX IT controlto monitor energy use.

In addition, the pavilionwill include a student radiostation, and open spaces areplanned for the MulticulturalCenter, the Women’s Centerand the Honors Center. Newspaces will be designated for aGraduate Law Lounge as wellas an International Student

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Lounge. The StudentLeadership and InvolvementCenter will spotlight inter-organizational cooperation.

Students also will have “TuMercado,” a complete marketwith a full grocery line includ-ing fresh produce, frozen

foods and a tea and coffee bar.New food choices will beavailable in the new diningareas, which will include

numerous themed mini-restaurants.

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Retail market continues downturn in first half of 2009BByy TTHHOORR KKAAMMBBAANN BBIIBBEERRMMAANN


The San Diego retail mar-ket continued to worsen dur-ing the first half of 2009 asthe recession forced manyretailers to close their doorsor file for bankruptcy. That’sthe word from CCBB RRiicchhaarrddEElllliiss, though its latest reportadds that hope is not lost.

CB Richard Ellis reportsthe countywide retail vacancyrate increased to 5.1 percentat the end of the second quar-ter of 2009, compared to 4.2percent at the end of thequarter. This figure wassomewhere between 3.5 per-cent and 3.8 percent a yearearlier, depending on the sur-vey.

Although retail vacancycontinues to rise, CBRE con-cludes that San Diego’s retailmarket should withstand the

current market conditionsbetter than most other retailmarkets across the country.

A major reason is with only120,000 square feet of inven-tory delivered to the marketyear-to-date and only 20,000square feet more expected todeliver by year end, retailvacancies in the countyshould remain relatively sta-ble.

Though the market may bestable, it hasn’t been easy. Theloss of Mervyn’s, Linens andThings, Circuit City and SamGoody’s have hammered sub-urban and downtown mar-kets alike. And, just becauseyou own a trophy downtownoffice building doesn’t meanyou can get your tenants topay.

WWeerreellddhhaavvee, which ownsthe 300,000-square-footDiamondView Tower office

building overlooking PetcoPark, filed lawsuits against sixof its ground-floor retailersfor nonpayment of rent earli-er this spring.

The largest of these tenantsis the FFiitt AAtthhlleettiicc CClluubb that atlast check occupied nearly37,000 square feet on theground and second floors.FFiirrssttAAggaaiinn LLLLCC, an onlineconsumer lender that hadoccupied more than 17,000square feet in the buildingbefore its business startedsinking, was also among thedelinquent group.

The troubles for retailers indowntown San Diego don’tstop at the bottom of officebuildings. Retailers, who maybe on the ground floor ofhigh-rise condominium proj-ects that have stalled in therecession, have been hit hardas well.

In the case of a submarketthat CBRE identified asdowntown/Hillcrest/OldTown, there is an enormousdifference between the directvacancy rate and the avail-ability rate that includes suchfactors as sublease and soon-to-be-available space.

Although thedowntown/Hillcrest/OldTown submarket had just a4.5 percent direct vacancyrate, the figure jumps all theway up to 20.5 percent whenthe availability rate is consid-ered. The huge disparity isgenerally attributable to alarge amount of subleasespace on the ground floors ofmany of these buildings.

To the north, a Marshall’s isgoing into a space that hadformerly been occupied by aCompUSA and a YaohanJapanese grocery before that

at the Hawthorne RetailCenter in Kearny Mesa.

A little further north in theRancho Penasquitos TownCenter, KKiimmccoo RReeaallttyy stillneeds to fill what had been aRadio Shack space two yearsago and Café Jasmine is thelatest tenant in a restaurantspace that has turned over nofewer than five times in thepast 15 years.

Carmel Mountain Ranch-area shopping centers havecontinued to perform well ina neighborhood of upper mid-dle income residents, but thesubmarket has to find ways torefill spaces vacated byMervyn’s, Circuit City Linens& Things and others. Whilethis may seem like a dauntingtask in this economy, retailbrokers commonly refer tothis trade area as one of thestrongest in the county.

Carmel Mountain Ranchposted a 6 percent vacancyrate and an 8.9 percent avail-ability rate in the secondquarter according to CBRE,which is considerably higherthan normal for this market.

Finally, in nearby Poway,citizens and city officials aredebating the merits ofexpanding what is currently a142,000-square-foot Wal-Mart store on CommunityRoad into a 197,000-square-foot Supercenter.

Although many people havesaid they would like the con-venience, others warn theSupercenter would end upcannibalizing other storessuch as a neighboring Von’sand Albertson’s and generatemore traffic than theCommunity Road can handle.

bbiibbeerrmmaann@@ssddddtt..ccoommSSoouurrccee CCooddee:: 2200009900882277ccrraapp

ROUNDTABLE PARTICIPANTS


Construction roundtable

Firms continue migration toward public sector projectsMilitary,

education work going strongBByy CCAARRLLOOSS RRIICCOO


The mood in the local con-struction sector appears to bea mix of uncertainty and opti-mism, as expressed by indus-try leaders during a round-table discussion hosted byThe Daily Transcript.

“There is work out there,

but it is few and far between,”said RRooeell CCoonnssttrruuccttiioonn CCoo..CEO Wayne Hickey. “And,when there is a job out there,you might have 20 to 30 con-tractors looking at it rightnow.”

He added that there is “notenough” happening in theconstruction industry.

This is not the first reces-sion that many of the con-struction executives presentat the roundtable have expe-rienced. But many agree that

WWaayynnee HHiicckkeeyy,, CEO Roel Construction Co.

JJoohhnn KKeeeeffeerr,, District Manager Gilbane Building Co.

TTeeee NNeessss,, President Hawthorne CAT (sponsor)

JJaammiiee PPrreevvoosstt,, President Prevost Construction

GGeeoorrggee RRooggeerrss,, President RQ Construction Inc.

JJiimm RRoohheerrttyy,, President Pacific Building Group

JJooeell SSmmiitthh,, VP of Sales ToolUp

KKrraaiigg SSttaahhll,, Owner K.D. Stahl Construction

EErriicc GG.. SStteennmmaann,, President Barnhart

the current marketplace isdifferent from what they haveseen in the past.

PPaacciiffiicc BBuuiillddiinngg GGrroouuppPresident Jim Roherty saidthe slowdown in the mid-1990s was due to over-build-ing and had nothing to dowith the financial sectorcrashing or a lack of lending,as the current recessiondoes.

Hickey added that, thistime around, various privatesectors dried up within threeor four months, which wasnot the case during the mid-1990s slowdown.

“There was more opportu-nity (then) and certainly lesscompetition,” he said.

Currently, the major hotbeds for construction are inthe public sector, specificallyin military and educationwork.

Because of the strong mili-tary presence in San Diego,contractors have a variety ofopportunities. However, withbase realignments and clo-sures taking place, construc-tion industry professionalsare under more pressure toredevelop existing bases, saidEric Stenman, president ofthe local BBaarrnnhhaarrtt IInncc.. office.

Stenman added that, unlikeother sectors, the “federalgovernment has theAmerican Recovery andReinvestment Act, (which isadding) additional funds” tohelp keep business steady.

He explained that the mili-tary sector of construction isdoing pretty well becausetroops returning from over-seas need housing and med-ical care.

However, participating inmilitary projects comes witha variety of prerequisites,which make it challenging forcontractors to get into thatindustry.

On the education front,school projects are becomingmore popular thanks tobonds passed by voters in thelast few years. Most schoolprojects consist of modern-izations and renovations ofexisting facilities.

Some contractors, however,see future opportunities asbanks start lending again andpeople start spending. Thehope is that new areas forgrowth will open up becausenumerous projects arealready designed or shovelready.

Smaller health care renova-tion projects, for example,have been put on holdbecause of various financialissues, Roherty said.

“We have had a lot of peo-ple indicate, if they had themoney, they would buildsomething,” he added.However, Roherty was some-what skeptical and said thecontractors will wait and “seeif that really happens.”

Hickey said there are proj-ects ready to be built in thehospitality sector too, butindicated that he is skepticalany construction would occureven if the money were avail-able.

RRQQ CCoonnssttrruuccttiioonn IInncc..President and CEO GeorgeH. Rogers III said he believesprojects will move forward assoon as banks start lending.He suspects the priority will

be on projects such as thosein the health care sector,rather than hospitality.

“Who wants to build a hotelwith 60 percent occupancyrates?” Rogers asked. “Whatpeople forget is that construc-tion comes from wealth ...and in this economy, wealthhas disappeared.”

Almost all participants atthe roundtable, which wassponsored by HHaawwtthhoorrnneeCCAATT, agreed that it is hard tosay what lies ahead. Theyagreed that, if they want tosurvive, they need to branchout and prepare for many dif-ferent circumstances andprojects in a variety of sec-tors.

Traditionally, general con-tractors specialize in one ortwo sectors. Barnhart, forexample, focuses on institu-tional projects. Industry lead-ers now say the constructionindustry is changing andfirms need to diversify to stayalive.

In the past, Roel’s maincontracts were from the pri-vate sector, but Hickey saidthe company is now ventur-ing to the public side becauseprojects like office buildingsand hotels have dried up.

He added that Roel is “will-ing” to diversify “because weneed that in our business. Weneed that portion of the busi-ness in the future.” Roel’s rev-enue is down 40 percent to 50percent from two years ago.

Many general contractingfirms now offer other servicessuch as construction manage-ment and in-house architec-tural design to broaden theirclient base. Many firms alsoare using new tools and tech-nology, like BuildingInformation Modeling, aswell as embracing “green”and sustainable design.

“We are forced to look atevery aspect of our businessright now and find ways toincrease our productivity.When we come out of this(recession), we are going tobe better companies,” saidJohn Keeker, district manag-er for GGiillbbaannee BBuuiillddiinngg CCoo..

ccaarrllooss..rriiccoo@@ssddddtt..ccoommSSoouurrccee CCooddee:: 2200009900882277ccrraa

WWaayynnee HHiicckkeeyy,, CCEEOO ooff RRooeell CCoonnssttrruuccttiioonn..

JJooeell SSmmiitthh,, vviiccee pprreessiiddeenntt ooff ssaalleess ffoorr TToooollUUpp..

EErriicc GG.. SStteennmmaann,, pprreessiiddeenntt ooff BBaarrnnhhaarrtt..

All photos: J. Kat WoronowiczJJoohhnn KKeeeeffeerr,, ddiissttrriicctt mmaannaaggeerr ooff GGiillbbaannee BBuuiillddiinngg CCoo..

TTeeee NNeessss,, pprreessiiddeenntt ooff HHaawwtthhoorrnnee CCAATT..

JJiimm RRoohheerrttyy,, pprreessiiddeenntt ooff PPaacciiffiicc BBuuiillddiinngg GGrroouupp.. GGeeoorrggee RRooggeerrss,, pprreessiiddeenntt ooff RRQQ CCoonnssttrruuccttiioonn..


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Heritage Park gets new lease on life, expansion BByy TTHHOORR KKAAMMBBAANN BBIIBBEERRMMAANN


A San Diego hotel compa-ny recently took over theHeritage Park leasehold, andwill spend about $13 millionin replica buildings andupgrades to the seven exist-ing 1880s and 1890s-vintageVictorians moved to the OldTown site.

As part of an agreementgranted by the Board ofSupervisors in June, FredGrand, president of PacificHospitality Group of SanDiego will build four newVictorian-style structures atthe park.

Grand, the operator of thenearby Hacienda Hotel down

the hill from the HeritagePark, obtained the 581/2-year ground lease with twoadditional 10-year optionsvalued at $33.5 million.

The four new buildings willtotal 63 rooms, whichtogether with the seven exist-ing structures, will total 84guestrooms.

Parts of the existing build-ings will be for retail usage.

Two of the existing build-ings had been combined intothe 12-room Heritage ParkInn, whose lease was lost byCharles Helsper following acontract dispute inSeptember of last year afterhaving run the inn for about16 years.

Nine of the rooms were inthe Christian House andthree of the rooms were inthe Bushyhead House. Withsome upgrades, these build-ings will be retained for lodg-ing.

The other propertiesmoved to Heritage Park sincethe 8.5-acre park was begunin the early 1970s are theSherman-Gilbert House, theMcConaughy House, theBurton House, the SenlisCottage and Temple Beth.

Grand, who has workedclosely with Save OurHeritage Organization(SOHO) on the plans forboth the existing and the newstructures, said the Temple

Beth building will remain.The Grand has hired Edinger

Architects of San Diego.Edinger, which has

designed residences in SanDiego, Monterey and PalmDesert, is handling both theupgrade of the existing build-ings, and the new buildings.

“These existing buildingsneed a lot of work,” Grandsaid.

While an exact design ofthe new buildings, whosesites are being used as openand/or park space, have yetto be determined, Grand,Edinger and SOHO have anidea of what would be appro-priate for the site.

The buildings’ exact square

footage will depend on thechosen styles.

Two of the buildings wouldbe in a so-called SecondEmpire style.

Although there are varia-tions in this style that wascommon in the late Victorianera, they don’t have theround towers that are visiblein the Christian House.

They have square towers ifthey have towers at all anddormers are typical. Anotherfeature of these buildings isthe mansard roof.

Named for 17th centuryFrench architect FrancoisMansart, the roof structures— with their steep, double-sloped designs — actuallydate back as far as the Italianand French Renaissance.

Another of the re-createdhomes would be in a type ofGothic-revival style.

While this building wouldlook nothing like a Gothicchurch, it would have a rela-tively narrow front and steeproofline to emphasize itsheight.

The last building to bebuilt on the vacant potion ofhillside property will be con-structed in an Italianatestyle.

The Italianate homes comein a wide variety, but typical-ly are rectangular, have gen-tly sloping rather than steeproofs and often have a col-umn-covered entryway thatis large enough to have a siz-able porch that may go muchof the way around a building.

Hunsaker & Associates,which has handled engineer-ing work for a major expan-sion of the La Costa Resort &Spa, and the EastLakeBusiness Park in Chula Vista,is currently handling theengineering work on theHeritage Park job.

When asked about havingbuildings at Heritage Parkthat for the first time won’tbe authentic, Grand notedthat Colonial Williamsburg isa total re-creation, but stillimparts an accurate sense ofhistory.

“We’re trying to make thisas seamless as possible,”Grand said “We want these tobe as nice as the originalbuildings.”

All architectural designswill be created with inputfrom the local communityand reviewed and approvedby the City of San Diego.

Although San DiegoCounty has jurisdiction overHeritage Park, it has decidedto defer the entitlementprocess to the City of SanDiego.

As for the format of thelodging, Grand said while heis using the bed and break-fast as his model, he intendsto be flexible enough toamend this vision if the mar-ket dictates.

Grand, who has been hop-ing to realize this vision forthe past five years, said hehopes to get his entitlementsapproved about a year fromnow.

He said he believes the newconstruction and upgradeswould take about two yearsto complete.

Grand would probablyhave a difficult time if hetried to finance the projecttoday, he believes. However,if it is far enough in thefuture, his lenders will seethe promise of high occu-pancies in one of the mostpopular state parks inCalifornia.

“A percentage of the saleswill be paid in rent,” Grandsaid adding that the formulasare still being worked out.

It also doesn’t hurt, saidGrand that Fiesta de Reyes, arestaurant and shop venuebeing redeveloped on whatwas formerly the Bazaar delMundo property at the bot-tom of the hill, is coming intoits own.

“Chuck Ross (the newoperator) is doing a muchbetter job than DelawareNorth,” Grand said. “He’s get-ting the local customers toreturn.”

bbiibbeerrmmaann@@ssddddtt..ccoommSSoouurrccee CCooddee:: 2200009900662299ttddee

Construction to soon begin onstimulus-funded ocean research facility


An ocean research labora-tory in La Jolla is to be one ofthe largest projects in theregion funded by the federaleconomic stimulus package.The American Recovery andReinvestment Act will pro-vide $102 million for con-struction of an award-win-ning green building andtechnologically advancedtest tank.

The total cost of the124,000-square-foot build-ing is estimated at $104.5million and site preparationmay begin as early as thisyear.

Although completion isexpected in 2012, said RogerHewitt, assistant director ofthe Southwest FisheriesScience Center (SWFSC).Overseen by the NationalOceanic and AtmosphericAdministration (NOAA), thefederal research agency ana-lyzes the oceans and atmos-phere and tracks the statusof sea creatures and marine

mammals from six locationsacross the United States.

The new building willreplace SWFSC’s currentfacility located on theScripps Institution ofOceanography, University ofCalifornia, San Diego cam-pus on La Jolla Shores Drive.The 1960s-era building isslated for demolition due toits location atop heavilyeroded cliffs, Hewitt said.The new building will beconstructed directly acrossthe street.

Designed by Gould EvansArchitects, the unbuilt proj-ect received a rare honoraward from the AmericanInstitute of Architects SanDiego Chapter in 2008. Thejudging panel was particu-larly impressed with the pro-ject’s inclusion of 90,000square feet of parking, whichis entirely hidden from streetview.

“The design is inspired byand responds to the dramat-ic site conditions andembraces the culture of that

scientific community,”Anthony Rohr, design prin-cipal for the project said in awritten statement.

The project is expected toachieve the LEED Gold stan-dard for sustainability andrely heavily on natural venti-lation and lighting. Perhapsone of the building’s mostinnovative features is a greenroof designed to collect rain-water runoff, preventing itfrom trickling into the near-by ocean. By incorporatingnative plants, the roof willrequire little irrigation,Hewitt said.

The new building fits wellwith the mission of SWFSC,Hewitt said.

“Our mission is to manageand conserve greenresources in the Californiacurrent,” Hewitt said. “To theextent that we’re in the busi-ness of conservation, it onlymakes sense our buildingexercises conservation aswell.”

The building will alsomake SWFSC a leader in the

global science community.The 2 million liter OceanTechnology DevelopmentTank is the only saltwaterand freshwater test tank inthe world with thermohalinecontrol. The tank willimprove the quality andquantity of NOAA’s monitor-ing activities, by allowingnew technologies to be test-ed in the tank prior to use inthe open ocean. The tankallows for simulation of abroad range of temperatures,salinities and living marineanimals.

The new SWFSC buildingis not the only project toreceive funding. The agencywill make improvements toseveral laboratories nation-wide. In San Diego, SWFSCwill also get a new researchvessel. Funded with approxi-mately $80 million fromARRA, the ship will replacethe David Star Jordan uponits completion in 2014,Hewitt said.

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Westfield puts expansions on hold; renovations continueBByy TTHHOORR KKAAMMBBAANN BBIIBBEERRMMAANN


Australian-based WWeessttffiieellddGGrroouupp, which owns seven ofthe county’s largest malls,says it has the money for mul-timillion-dollar renovationsand expansions of its centers.But while renovations willcontinue, expansions won’toccur until the economyimproves.

Jonathan Bradhurst,Westfield senior vice presi-dent of U.S. development,said each of his centers,which employ a total of15,000 people in San DiegoCounty, is better than 90 per-cent leased. Bradhurst saideven though spaces are usu-ally quickly filled after theyare vacated and Westfieldstill retains more than $3 bil-lion in equity capital despitethe recession, this isn’t the

time to pull the trigger onany major expansions.

“Even with leverage thereis $8.7 billion available, sothe money is there, but thetiming has to make sense,”Bradhurst said.

Westfield malls in SanDiego County includeHorton Plaza, with a report-ed fair market value of$360.8 million as of the endof last year; Mission ValleyCenter, with a fair marketvalue of $331.9 million;Westfield North County, witha fair market value of $243.9million; Parkway Plaza, witha fair market value of $308.7million; Plaza Bonita, with afair market value of $376.6million; Plaza Camino Real,with a fair market value of$196.8 million; andUniversity Towne Center,with a fair market value of

$198.6 million.Each one of these centers

(most with planned or newlycompleted upgrades) sawtheir per-square-foot salesdecline last year. HortonPlaza saw the largest per-centage per-square-footdecline year-over-year, withan 8.4 percent drop to $444per square foot in 2008.Plaza Bonita fared the best,with only a 1.4 percent dropin 2008 to $448 per squarefoot.

UTC garnered the highestannual per-square-foot salesfigure at $619. Plaza CaminoReal posted a $343 persquare foot average at theother end of the spectrum.

University Towne Centerwas on the verge of imple-menting a 750,000-square-foot expansion to its mallwith the addition of 250 mul-

tifamily residential unitswhen the recession hit. Nowthe project going for LEEDGold certification has beenplaced on hold.

Bradhurst said UTC couldbe started within eight to 10months if conditionsimprove.

“It’s a troubled economyright now, but this project isfully entitled and we remaincommitted to do it,”Bradhurst said.

If a LEED Gold rating isachieved, the project will notonly be able to power thecenter, but may actually sendpower back to the grid.

Westfield Mission Valleyalso has a planned majorexpansion, but the size of thisgrowth and other possible ele-ments are still nebulous atthis point and will naturallydepend on market conditions.

When Bradhurst first dis-cussed the proposal beforethe Mission Valley UnifiedPlanning Committee lastAugust, he said the mixed-use project might expand themall by as much as 500,000square feet, add perhaps450,000 square feet of officespace or a hotel and maybe250 residential units.However, that was just daysbefore the economy col-lapsed.

“The only activity we’redoing there right now is ren-ovation work,” Bradhurstsaid.

Bradhurst, who said he hasreceived a favorable endorse-ment of at least the retailportion of the plan, said “theproposal is pretty fungible atthis point.”

While Westfield expan-sions have been placed on

hold — Plaza Bonita’s wasrecently completed, andexpansions had also beenconsidered at the NorthCounty location in Escondidoand Plaza Camino Real inCarlsbad — renovation planshave continued to move for-ward.

No new space will be addedat Horton Plaza, but whenthe work is eventually done itwill be a virtually new mall.

Bradhurst said he hadobtained letters of intentfrom a fashion retailer andrestaurants that would occu-py the old Robinsons-Mayspace at Horton.

“This is going to be a sub-stantial transformation,”Bradhurst added, noting thata Mervyn’s space vacated acouple of years ago has sincebeen replaced with newretail.

Parkway Plaza in El Cajon,which at 1.3 million squarefeet is Westfield’s largestasset here, is in the process ofbeing renovated, as is theWestfield North County mall.

“Westfield North Countyhas a new Apple store, a newCoach store and H&M, aSwedish fashion store,”Bradhurst said. “That’s adelightful center.”

Plaza Camino Real, built in1969, is the oldest member ofthe Westfield family here.

“We’re very close to launch-ing a submission for that,” hesaid. The work there willinclude a substantial renova-tion and a possible expan-sion.

Westfield recently com-pleted a 330,000-square-foot expansion of the PlazaBonita shopping center inNational City. A 14-screenstate-of-the-art AMCTheatres anchored theexpansion, which also includ-ed a new Border’s Books andother retailers.

Westfield may be well capi-talized, but that doesn’t meanit has been untouched by therecession. The company saw$2.6 billion in lost value at its118 malls around the worldlast year, and values mayhave only declined sincethen. What’s more, as of thiswriting, the company’s stockprice had been cut roughly inhalf from a year ago.Westfield Group is traded onthe Australian StockExchange.

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spots in the county, andHawthorne CAT has reposi-tioned some of its staff tocover military contractors. Ithas also gone after more fed-eral business.

Ness said housing hasdriven most of the compa-ny’s local business for thelast 50 years. It moved a lotof dirt when communitiessuch as Tierra Santa, SantaLuz, 4S Ranch and the OtayLakes housing developmentswere being built. Since thecounty is mostly built outnow, Hawthorne CAT isfocusing on roadways andinfrastructure projects suchas sewer, water, electriclines, demolition and urbanredevelopment.

As one of the largest own-ers and suppliers of equip-ment locally, HawthorneCAT has been trying to keepup with the new diesel regu-lations from the CaliforniaAir Resources Board(CARB). Due to concernsfrom the struggling con-struction industry about jobsand the economy, CARBrecently voted to postponeenforcement of the regula-tions for off-road diesel vehi-cles.

“We’ve moved out olderequipment and we are nowat a point where everythingmeets regulations. As a sup-plier, we anticipate regula-tions and try to keep on topof it. So far we haven’t seensales increase (because of theneed for compliance), but itwill happen some time in thefuture,” Ness said.

Nagappan is a San Diego-based freelance businesswriter.

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NessContinued from Page 9

Name

URL

Value of Signed

Contracts

in San Diego

(Jan.-Dec. 2008)

Total Value of

Signed Contracts

Companywide

(Jan.-Dec. 2008)

Value of Signed

Contracts

in San Diego

as of 03/09

Value of Signed

Contracts

Companywide

as of 03/09

Executive(s) & Title(s)

Year

Established

in

San Diego

Year

Established

1 Swinerton Builders

www.swinerton.com$264,918,866 wnd $8,242,747 n/a

Don Adair, Sr.VP/Div. Manager; James Farrel,VP/Operations Manager, General Building; MarkPayne, VP/Operations Manager, Special Projects;Bob Wlson, VP/Chief Estimator; Chris Day, VP,Swinerton Inc.

1993 1888

2 C.W. Driver

www.cwdriver.com$221,805,000 $1,414,000,000 $226,000,000 $1,300,000,000 Joe Grosshart, VP; Darren Mann, VP 2003 1919

3Solpac Construction Inc. dba

Soltek Pacific Construction Co.

www.soltekpacific.com$204,741,735 $279,183,316 $0 $42,094,921

Stephen W. Thompson, CEO; Dave Carlin,President; John Myers, VP; Kevin Cammall, VP;William Naylor, VP

1974 1974

4 Barnhart Inc.

www.barnhart-heery.com$202,530,306 $625,495,634 $32,220,577 $62,508,195

Eric Stenman, President; Arthur “”Tex””Barnhart, Exec. Dir. of Operations; William Sharp,Exec. Dir. of Business Development

1983 1983

5 Turner Construction Co.

www.turnerconstruction.com$201,000,000 $6,500,000,000 n/a n/a

Richard Bach, Sr. VP/Regional Manager; JamieAwford, VP/GM; Ron Rudolph, VP/OperationsManager

1963 1902

6 Harper Construction

www.harperconstruction.com$164,600,000 $268,550,000 $22,650,000 $65,520,000 Jeffrey A. Harper, President 1974 1974

7 DPR Construction Inc.

www.dprinc.com$160,000,000 wnd n/a n/a

Jay Leopold, Regional Manager; Scott Strom,Preconstruction Manager; Frank Jones, ProjectExec.; Kevin Thompson, Project Exec., SmallProjects Group

1992 1990

8 Roel Construction Co. Inc.

www.roel.com$159,165,000 $189,814,000 $61,500,000 $63,775,000

Wayne Hickey, CEO; Kevin Elliott, President; CraigKoehler, CFO; John Elliott, Chairman of the Board

1959 1917

9 Reno Contracting Inc.

www.renocon.com$99,491,000 $99,491,000 n/a $50,346,737 Matthew Reno, CEO; Walter Fegley, President 1993 1993

10 T.B. Penick & Sons Inc.

www.tbpenick.com$88,829,543 $161,106,333 n/a n/a

Marc Penick, CEO; Tim Penick, President; GregLee, Exec. VP; Byron Klemaske II, Exec. VP; JohnBoyd, CFO

1905 1905

11Clark Construction Group -

California LP

www.clarkconstruction.com$79,156,706 $4,489,975,449 $0 $975,008,415 Alan Petrasek, Sr. VP; Carlos Gonzalez, VP 2001 1906

12 BYCOR General Contractors Inc.

www.bycor.com$78,307,979 $78,307,979 $2,448,100 $2,448,100 Scott Kaats, CEO; Richard Byer, President 1981 1981

13 Wermers

www.wermerscontractors.com$78,000,000 $110,000,000 $78,000,000 $122,000,000 Tom Wermers, CEO; Jeff Bunker, President 1957 1957

14 Legacy Building Services

www.legacybldg.com$66,500,000 $66,500,000 $14,464,792 $14,464,792

Thomas R. Remensperger, P.E., President; WilliamKittredge, COO

2003 2003

15TSA Contracting Inc. and new

biotech division DBC

www.tsaci.com$63,253,190 $65,860,000 n/a n/a

Terry S. Arnett, President; Pamela J. Arnett, CEO;Cindy Stempein, Controller; Bill Beckett, Gen.Superintendent

1978 1978

16 Pacific Building Group

www.pacificbuildinggroup.com$50,298,582 $50,298,582 $9,693,190 $9,693,190

Gregory A. Rogers, CEO; Jim Roherty, President;Bill Hansen, VP of Operations

1984 1984

17 Good & Roberts Inc.

www.goodandroberts.com$42,786,095 $42,992,472 n/a n/a

Jack Good, CEO; Tim Umbarger, President; ChuckGlynn, Exec. VP; Elizabeth Good,Secretary/Treasurer; Helen Carter, VP, Finance

1979 1979

18 BSD Builders Inc.

www.bsdbuilders.com$40,000,000 $40,000,000 $38,000,000 $38,000,000

Jeff Blair, Prinicipal; Steve Sherrer, Principal; JimDocherty, Principal

2005 2005

19 Burger Construction

www.burgercon.com$32,835,000 $32,835,000 n/a n/a Jack Burger, President; Herb Krul, COO 1992 1992

20 The Whiting-Turner Contracting Co.

www.whiting-turner.com$23,760,000 $2,219,000,000 $12,000,000 $335,000,000 Steve Likins, VP 2004 1909

21 Prevost Construction

www.prevostconstruction.com$17,600,000 $17,600,000 wnd n/a John Prevost, CEO; Jamie Prevost, President 1989 1989

22 J. Reese Construction Inc.

www.jreeseconstruction.com$15,000,000 $15,000,000 $15,146,400 $15,146,400

Douglas E. Barnhart, Chairman; West Reese, CEO;Tami Barnhart Reese, President

2008 2008

23 DBC Construction Inc.

www.dbccontractors.com$14,000,000 $22,000,000 n/a n/a David L. Begent, President 1978 1978

24 I. E. Pacific Inc.

www.iepacific.com$9,698,734 $25,990,934 $0 $0

Diane Koester-Dion, President; LouAnn HaleGarcia, CFO; Michael Hernandez, ConstructionManager

1993 1993

25 Gilbane Building Co.

www.gilbaneco.com$0 $5,501,773,000 $0 n/a

Andrew R. Faber, Sr. CP/Regional Manager; JohnKeefer, Dist. Manager

2003 1873

Data Source: The Companies. Listed by Value of Signed Contracts in San Diego(Jan.-Dec. 2008). This is a partial list; a more complete listing can be found at sourcebook.sddt.com. N/A: Not Applicable, n/a:not available, wnd: would not disclose. It is not the intent of this list to endorse its participants, nor to imply that a company’s size or numerical rank indicates its quality or service. We reserve the right to editlistings or to exclude a listing due to insufficient information. The following companies either did not respond to our survey or indicated they would not participate: Gafcon Inc., CornerstoneCMS Inc., JaynesCorp. of California, Erickson-Hall Construction Co., Johnson & Jennings, Ledcor San Diego Construction, Powell Construction and Real Estate, Quest Construction Engineering, Straub, Zigman/Shields GeneralConstractors Inc. Compiled by Robin Scott, [email protected]. Last updated 6/2009.

Listed by Value of Signed Contracts in San Diego (January-December 2008)

General Contractors


A few downtown projects keep contractors busyBByy TTHHOORR KKAAMMBBAANN BBIIBBEERRMMAANN


The economy may be slow,but a few downtown projectsare keeping contractors busy,from a new 240-roomMarriott Residence Inn slatedto open next month to theThomas Jefferson School ofLaw on Island Avenue delayedby mammoth and whalebones.

In a Centre CityDevelopment Corp. statusreport, the agency saidMarriott Residence Inn devel-oper JJ 55tthh LLLLCC and contractorRReennoo CCoonnttrraaccttiinngg are puttingfinishing touches on the 240-room hotel’s exterior.

The project, along the southside of J Street between Fifthand Sixth avenues, also hasabout 8,000 square feet ofretail on the ground floor.

While the Marriott is hittingthe market during a very diffi-cult time for the lodging

industry, hotel consultant anddeveloper Robert Rauch saidthe Residence Inn should be astrong performer.

“This hotel is certainly in avery good location. It is in theheart of the Gaslamp and isone of the few extended-stayhotels downtown,” he said.

A companion 362-roomMarriott Residence Inn by thesame developer has been pro-posed across J Street thatwould have about 4,000square feet of ground floorretail. No timetable has beenset for this project due to tightfinancing.

Rauch noted that two fac-tors are keeping new hotelsfrom being started. One is thefact the revenues per availableroom (RevPAR) have been in afreefall and the other is thatoccupancies are down signifi-cantly.

“The occupancies are downabout 13 percent and the rates

are also off by about 13 per-cent. I’m not sure any hotelcan get financing in this dayand age,” Rauch said.

BBFF HHoossppiittaalliittyy hopes to getunder way on its 340-roomhotel at 719 Ash St. in orbefore December of this year,but that timetable may slip ifits financing isn’t secured.

If BF were successful in gar-nering the funding, the hotel,which would also have twocondominiums and 5,000square feet of retail, could becompleted by December of2011.

The planned 89-roomVillage Hotel by BBeellll HHootteellLLttdd.. and MMGGSSDD IInncc.. was sup-posed to get under way earlythis year but is waiting for theright time to start. The devel-opers still hope that could beas early as December.

The Village, with 1,000square feet of associated retail,could be opened by June of

2011, but the economy makesthat date uncertain.

Not every downtown hotelhas fared well in the mean-time. San Clemente-basedSSuunnssttoonnee HHootteell IInnvveessttoorrss(NYSE: SHO) recently elect-ed to walk away from its WHotel at 421 W. B St. ratherthan continuing making pay-ments.

The property is in downtownSan Diego but well away fromthe Convention Center andadjacent Gaslamp Quarter.

In contrast, the problem atthe new 175,000-square-footThomas Jefferson School ofLaw on Island Avenuebetween wasn’t funding, butfossils on site that slowedfoundation work earlier thisyear.

Work on the project’s garagehas recently been completed.BBoovviiss LLeenndd LLeeaassee is the gener-al contractor on the projectnow tentatively slated for com-

pletion in January 2011.General contractor RRuuddoollpphh

&& SSlleetttteenn is building two siz-able projects for San DiegoCity College.

One is the Carrier Johnson-designed, 89,000-square-foot,five-story Career TechnologyCenter along the south side ofC Street between 17th and 18thstreets, slated for completionin February 2010.

An 11-story, 700-car parkinggarage is planned on the sitefor the center, as well as therest of the campus.

The second project is a new73,000-square-foot sciencebuilding nearby that is slatedfor completion in the spring of2010.

While there may still be aglut of condominiums on themarket in downtown SanDiego, projects started beforethe recession have little choicebut to make the best of a badsituation.

Units at both the 679-unitVantage Pointe and the mixed-use 276-unit Smart Cornerdevelopments have gone beg-ging in the downturn.

Since Smart Corner openedits doors to residents inSeptember 2007, only a fewunits have been sold.

Nearly half the remainingunsold units have been con-verted to apartments and alease-to-own program wasstarted earlier this year.

Another residential projectcaught in the downtown isHHaannoovveerr DDeevveellooppmmeenntt’sStrata, with 163 apartmentsand 6,400 square feet ofground floor. Strata, which gotunder way early in the fall of2007 on the southwest cornerof Tenth Avenue and MarketStreet, is expected to be com-pleted in December.

Many projects on CCDC’slist simply have no particulartimetable at all.

TThhee IIrrvviinnee CCoo..’s proposed680,000-square-foot officetower at the foot of Broadwaystill had a listed start date,according to CCDC, ofDecember with completion inDecember 2011.

But the developer hasemphasized the project is onindefinite hold until the econo-my improves.

With more than 1.73 millionsquare feet of direct vacantspace according to JJoonneess LLaannggLLaaSSaallllee (NYSE: JLL), down-town has a lot of space to fillbefore a new office tower maybe justified.

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McCarthy set tobuild project atMiramar College


MMccCCaarrtthhyy BBuuiillddiinngg CCoo. hasbeen awarded a $24.3 mil-lion contract for the designand construction of a newpolice substation and stu-dent/faculty parking struc-ture at Miramar College.

The parking garage will bea four-story structure with828 spaces, 14 interior policeparking stalls and 12 adjoin-ing surface lot stalls.

The scope of work includesreinforced concrete andrelated site work likeinstalling drought-tolerantlandscaping and high-effi-ciency irrigation systems thatuse reclaimed water.

The 6,000-square-footpolice substation is designedto achieve LEED platinumcertification by having agreen roof grid system thatwill cover the entire top anduses modular panels for easeof installation, roof accessand maintenance.

There also will be a “greenscreen” that will cover thewest elevation of the parkingstructure and provide theaesthetic of a vertical garden.These living plants will con-tribute to a microclimatecentral to the facility’s pas-sive thermal and naturalventilation design, accordingto McCarthy staff.

An assortment of othersustainable design featuresalso factor into the building’sLEED platinum design,including terra cotta rainscreens, curtain walls, opera-ble windows, Solatube sky-lights, renewable and recy-cled flooring and low-emit-ting casework materials.

The police substation’sreception area will feature aninteractive flat screen panelthat informs visitors of thebuilding’s sustainable fea-tures and reinforcesMiramar College’s sustain-ability goals.

HHaarrlleeyy EElllliiss DDeevveerreeaauuxx wasthe architect on the project.

Other main contractorsinvolved on this projectincluded JJeesssseenn WWrriigghhttSSttrruuccttuurraall EEnnggiinneeeerrss;RRaannddaallll LLaammbb AAssssoocciiaatteess,electrical engineer; SSCCEEnnggiinneeeerrss, mechanical engi-neer; BBuurrkkeetttt && WWoonnggEEnnggiinneeeerrss, civil engineer;and SScchhmmiiddtt DDeessiiggnn GGrroouupp,landscape architect.

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Neal Electric sees this Basic Electrical EducationalClass as a great chance for us to better know ourfriends in the industry and a chance for our

Customers to learn what our trade is all about and at thesame time learn some of the capabilities of NNeeaall EElleeccttrriiccand how we can be a further benefit to them.

This eight hour course will give an overview of the elec-trical construction trade. Students will gain an understand-ing of the typical means and methods, as well as some ofthe potential dangers associated with electricity. This infor-mation will assist partici-pants in becoming moreeffective in the manage-ment and coordination oftheir projects and allowthem to better interfacewith the Electrical SubContractors.

WWhhaatt tthhee ccoouurrssee ccoovveerrss::• Quick review of basic

electrical theory.• Understanding the

purpose of the code andhow it applies to installa-tions.

• Examples of basicelectrical materials andwhere they are used.

• Overview of a set of

typical electrical drawings.• Sequential pictures of typical electrical installations.• The planning process and its importance.• Practical information to help you better understand the

electrical installation process.• Provide supplemental information that will not be cov-

ered but can be used for future reference.During the class we will be reviewing over 500 pictures.

The pictures will quickly walk us through different types ofelectrical installations on typical projects starting from

underground to thefinishes. (500 pic-tures can communi-cate 500,000 words)

With a clearerunderstanding ofhow and why we dowhat we do, this classwill serve to furtherimprove the relation-ships between ourfirms and our mutualcustomers and givethem the BestElectrical installationpossible, on time andon budget! We lookforward to seeingyou!

Neal “Electric 101” Class (Basic Electrical)


County to receive $785 million instimulus funds for military construction

BByy EERRIINN BBRRIIDDGGEESSThe Daily Transcript

The federal government’sefforts to stimulate the econo-my opened doors for con-struction and environmentalwork at military installationsacross the country. And SanDiego County received a sig-nificant amount of that fund-ing.

The American Recoveryand Reinvestment Act(ARRA) included $7.4 billionfor Department of Defenseprojects. Of that amount,$785 million will go towardDepartment of the Navy workin San Diego County.

ARRA projects includethose that already had beenidentified as requirements butfor which no funding hadbeen allocated, said NavyCapt. Steve Wirsching, com-manding officer of NavalFacilities EngineeringCommand (NAVFAC)Southwest, which is oversee-ing the work.

“The Recovery Act fundshave allowed us to move for-ward on initiatives that willimprove living and workingconditions for our sailors andMarines,” he said.

There also was an emphasison environmental efforts —something the Navy alreadywas working toward in otherprojects.

“Energy conservation andrenewable energy projectswere one of our main priori-ties for Recovery Act funds,”Wirshing said. “These proj-ects allow us to accelerate analready important Navy ini-tiative to reduce reliance onbrown energy, and helps usreduce our utility costs in thefuture.”

In issuing these contracts,NAVFAC Southwest is work-ing to meet its goals forawards going to small busi-nesses.

As of the end of July, 40percent of contracts by dollar

value went to small business-es, Wirsching said. And hesaid non-small business con-tracts include “aggressivesmall business goals.”

Most ARRA contracts willbe issued in fiscal year 2009with a few slated for 2010.

Navy Region SouthwestARRA Projects alreadyawarded for work at Navyinstallations in San DiegoCounty:

• $813,000 to MMTTMMBBuuiillddeerrss on April 6 to replaceroof mounted boilers at bach-elor quarters 3144 and bache-lor quarters 3150 at NavalStation San Diego (ST09-0561)

• $637,000 to QQ--MMAAXXCCoonnssttrruuccttiioonn CCoo.. on April 7 toreplace the metal roof at thebachelor quarters building,SCI, at Naval Base Coronado(ST09-0605)

• $778,000 to PPaacciiffiicc WWeessttBBuuiillddeerrss on April 29 to repairand modernize 13 living unitsin bachelor quarters, building554 at Naval Base Point Loma(RM525-08)

• $216,000 to AAlllleennEEnnggiinneeeerriinngg CCoonnttrraaccttoorr IInncc..on May 21 to restore mycologyclinical spaces at NavalMedical Center San Diego(TMA-N13)

• SSyynneerrggyy EElleeccttrriicc CCoo.. onJune 30 to replace the invert-er for a 750KW Solar array atNaval Station San Diego aspart of a $910,000 program(RM09-1454)

• Synergy Electric Co.received a contract July 20 toinstall photovoltaic systems atvarious Navy installations aspart of a $31.8 million pro-gram (RM09-1440)

Other NAVFAC SouthwestARRA projects slated for FY2009 and 2010 at Navyinstallations in San DiegoCounty:

• Whole bachelor quartersmodernization, buildings 14and 15, at Naval Station SanDiego with award projected

for Aug. 31• Repair and modernize

Littoral Combat ShipSquadron Building 55 atNaval Station San Diego withaward projected for Aug. 31

• Repair and modernizeDDG1000 training facility atNaval Station San Diego withaward projected for Sept. 1

• Facility energy improve-ments, phase 3, at Naval BasePoint Loma with award pro-jected for Sept. 15

• Facility energy improve-ments, phase 3, at Naval BaseCoronado with award project-ed for Sept. 15

• Facility energy improve-ments, phase 3, at NavalStation San Diego with awardprojected for Sept. 15

• Restore aged and deterio-rated cooling towers atNMCSD with award project-ed for Sept. 30

• Child care center 24/7 atNaval Base Coronado withaward projected for Sept. 30

• Restore interior spaces formental health clinic anddeployment health center atNMCSD with award project-ed for Sept. 30

• Bachelor enlisted quar-ters at Naval Base Coronadowith award projected forSept. 30

• Photovoltaic system atNaval Base Coronado withaward projected for Sept. 30

• Child development centerat Naval Base Point Lomawith award projected for Sept.30

• Photovoltaic system atNaval Base San Diego withaward projected for Sept. 30

• Whole bachelor quartersmodernization, building 783,at Naval Base Coronado withaward projected for Dec. 30

• Whole bachelor quartersmodernization, building 787at Naval Base Coronado withaward projected for Dec. 30

• Photovoltaic system at

See Stimulus funds on 19


Completion of Woodbury School of ArchitectureJJoohhnnssoonn && JJeennnniinnggss GGeenneerraall CCoonnttrraaccttiinngg completed in January the build-out of Woodbury

University, School of Architecture at 2212 Main St. in the Logan Heights community of SanDiego.

The campus was born out of the former Gould Hardware building in Barrio Logan, justsouth of downtown San Diego. The 27,000-square-foot improvements included constructionof two classrooms, a library, three large studio spaces, a model making shop, computer laband faculty offices. Much of the 1960s vintage finishes were incorporated into the build-out.

The project team worked with Sempra Energy’s (NYSE: SRE) Emerging Technologies pro-gram to implement several innovative energy conservation systems on the campus.

Ultra-high efficiency air conditioning units and agricultural shade cloth were utilized forglazing to ensure heat rejection. In addition, Global Positioning System-directed mirroredskylights were installed.

The project was overseen by Steven Shupp, project director for CCuusshhmmaann && WWaakkeeffiieelldd..Todd Rinehart and Catherine Herbst, of RRiinneehhaarrtt HHeerrbbsstt,, were project architects, withMonica Peralta of IIRR22 IInntteerriioorr RReessoouurrccee IInncc.. providing interior space consultation. GregDziewit was project manager for Johnson & Jennings, with Norm Testerman as superinten-dent.

SSoouurrccee CCooddee:: 2200009900882277ccrraazz

Civic Center project nears negotiation stageBByy DDOOUUGG SSHHEERRWWIINN


When officials from the cityof San Diego and developerGGeerrddiinngg EEddlleenn meet again totalk about a new civic centercomplex, they’ll have a lot todiscuss.

Since the Portland, Ore.-based company first proposedits ambitious three-phase,half-billion-dollar project, theeconomy has fallen into a lin-gering recession.

“There’s a lot of moving val-ues going on,” admitted PhilRath, the mayor’s deputydirector of policy. “Their opin-ion of how much the rest ofour land is worth is probablydifferent now than when theygave us a proposal. Their

opinion of how much it willcost to build us a new tower isprobably different than (whatit was) back then.”

Next month, the San DiegoCity Council is expected tovote on whether the cityshould enter into an exclusivenegotiation agreement (ENA)with Gerding Edlen.

The Center CityDevelopment Corp. recentlyrecommended the city sign anENA with Gerding, notingthat the current City Hall is indisrepair and is too small to fitthe city’s needs.

“We have a building and acomplex that’s falling apart,”Rath said. “We know what’swrong with it, and we knowhow much it costs to replace

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that.“We have leases for space

throughout downtown. Weknow how much it costs us, sowe know exactly where we’reheaded, and the line is headedup.”

City officials estimate it willcost $40 million over 10 yearsto renovate the current CityHall and adjacent building.The price tag doesn’t includethe amount it would cost thecity to continue to lease spaceoffsite.

The city’s current leases,obtained at relatively bargainprices in the 1990s, are set toexpire soon, and Rath saidnew rates could be very expen-sive.

How much more the city’srents will increase is a matterfor debate, “but we’re con-vinced it’s going be substan-tial,” he said. “There’s nothingwe can do about that becausewe need more space than weown.”

Approximately 2,000 of thecity’s 3,000 downtownemployees have to use privateoffice space.

Mayor Jerry Sanders hasstated publicly that a new cityhall will have to make senseeconomically or he will notsupport it.

“The mayor’s commitmenton that project has been, if it’scheaper, we’ll do it; if it’s moreexpensive, we won’t,” Rathsaid. “It’s just that simple.We’re not excited about pick-ing drapes and new tile floors.We care about spending thepeople’s money on servicesinstead of real estate. So it’s asimple business decision forus.”

Building a new civic centercomplex would save the cityan estimated $34.5 millionover five years and $74.7 mil-lion over 15 years, accordingto a cost analysis by real estateadvisory firm JJoonneess LLaannggLLaaSSaallllee.

Gerding Edlen is approach-ing the project from threephases, with the first partbeing a 34-floor, sail-shaped

DDeevveellooppeerr GGeerrddiinngg EEddlleenn’’ss iinniittiiaall pprrooppoossaall ffoorr tthhee cciittyy hhaallll bbuuiillddiinngg llaasstt ffaallll wwaass eessttiimmaatteedd ttoo ccoosstt$$553300 mmiilllliioonn..

city hall building with980,000 gross square feet. Itwould house a new fire sta-tion, civic theater, residentialspace and 20,000 square feetof retail space on the firstfloor.

The building’s efficient floorplan design will allow the cityto save money by consolidat-ing 1 million square feet ofoffice space it currently occu-pies throughout downtown to670,000 square feet, accord-ing to Gerding Edlen vicepresident Brent Gaulke.

The sail-shape designwould give San Diego an icon-ic landmark in its skyline, butthe building is environmen-tally friendly as well.

“What this is about is savingthe city money,” Gaulke said.“It can be a model of architec-tural excellence, but it also hasto be energy efficient.”

Gerding Edlen’s proposalwould enable city hall toachieve the highest standardin sustainability — LEEDplatinum. The building willfeature solar panels, rooftop

gardens and an onsite waste-water treatment and reclama-tion system, allowing it to be a“net zero” water user.

“It’s important now, but ifyou’re a believer that waterscarcity will put pressure onprices on water and electricity,it’s a smart bet to put theupfront costs in because theywill pay back themselves in areasonable time,” Gaulke said.

Gerding Edlen’s initial pro-posal for the city hall building

City to complete $27.3 million worthof recreation projects in coming year


San Diego residents willsoon have more places toslide into sandboxes and tossFrisbees, due to constructionof new parks.

The city of San Diego hasidentified $524 million inneeds for capital improve-ment projects related toparks and recreation, butplans to complete only $27.3million worth of projectsduring fiscal year 2010.

New projects include play-ing fields, community centersand open space.

Among the largest projectsthe city will undertake in2010 are Hickman Fields inKearny Mesa, HourglassField House in Mira Mesaand Carmel ValleyCommunity Park.

Kearny Mesa will soonboast a large new park.Construction is expected tobegin during fiscal year 2010on a $31.4 million undertak-ing to build multipurposefields, a recreation buildingand a swimming pool alllocated on a 44-acre site.

Mira Mesa is set to get a

new recreation center.Hourglass Field CommunityPark offers a gymnasium,shower and locker facilities,multipurpose rooms andmeeting rooms. Situatedbetween Miramar Collegeand Wangenheim MiddleSchool, the fields and fieldhouse will be used for a vari-ety of educational purposesas well as recreation for thecommunity.

Construction of the fieldhouse at Hourglass Parkbegan in 2007 and is expect-ed to be completed by theend of 2009.

The city also has plans toopen a 15-acre communitypark located in the CarmelValley and Torrey Hillsneighborhoods. CarmelValley Community ParkSouth will include a $5.8 mil-lion 16,347-square-footrecreation building. Both thebuilding and park are expect-ed to be completed duringfiscal year 2010. The parksite, which will include land-scaped recreation areas, costa total of $13.57 million.

Another large project inthe works is the expansion of

the Dorothy Petway Park inSoutheastern San Diego.Plans include adding 5.8acres to the park’s current2.7. The park will include pic-nic shelters, a children’s playarea, hard courts, walkways,fencing, an amphitheater,open turf areas and securitylighting. Design of the parkbegan in early 2009 and isexpected to be completed in2010. Construction is sched-uled to begin in 2010 and becompleted in 2011.

The project is located inthe Southcrest neighborhoodin the former Highway 252corridor.

North County skater boysand girls will rejoice theopening of Carmel ValleySkate Park during the com-ing fiscal year. The 33,000-square-foot park includes13,500 square feet of skatingspace, a concessions boothand restroom building. Thepark will also be lighted fornighttime use. Constructionbegan in 2009 and comple-tion is expected in 2010. Thepark cost a total of $3.2 mil-

See Civic Center on 21

See Recreation on 19


lion and will require a$150,000 operating budgeteach year.

Other notable parksexpected to be opened by theCity of San Diego Parks andRecreation Department dur-ing fiscal year 2010 includeMt. Hope Cemetery, OceanAir Recreation Center andPark (formerly Carmel ValleySouth Recreation Center),Naval Training CenterLiberty Station, fields at AliceBirney Elementary Schooland Roosevelt Middle Schooland Hilltop CommunityPark.

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RecreationContinued from Page 18

SPAWAR San Diego withaward projected for June 30,2010

ARRA projects slated for FY2009 funding at MarineCorps installations in SanDiego County:

• Repair Chief NavalAviation and TechnicalTraining Buildings at MarineCorps Air Station (MCAS)Camp Pendleton

• Repair bachelor enlistedquarters at MCB CampPendleton

• Repair gas pipe 31 area atMCB Camp Pendleton

• Repair bachelor enlistedquarters 24083 at MCB CampPendleton

• Repair Gas Pipe 62 Areaat MCB Camp Pendleton

• Repair Gas Pipe 53 Area atMCAS Camp Pendleton

• Repair Gas Pipe 52 Area atMCB Camp Pendleton

• Repair Gas Pipe 43 Areaat MCB Camp Pendleton

• Photovoltaic system atMCAS Camp Pendleton

• Photovoltaic system atMCAS Miramar

• Install solar lights at

MCAS Miramar• Facility energy improve-

ments at MCAS Miramar• Repair HVAC and boilers

aircraft rescue and fire fight-ing at MCAS Camp Pendleton

• Repair obstacle course andtrack at Marine Corps RecruitDepot San Diego

• Repair HVAC Mess HallDining Facility at MCRD SanDiego

• Reconfigure work spacesof aircraft rescue and firefighting building at MCASCamp Pendleton

• Repair recruit underwatersurvival facility at MCRD SanDiego

• Repair roof/HVAC 21 areaat MCB Camp Pendleton

• Repair roof/HVAC 1100area at MCB Camp Pendleton

• Repair roof and HVAC Hqarea at MCB Camp Pendleton

• Repair Fire Pump UtilityBuilding 2390 at MCASCamp Pendleton

• Improvements to FirePump Utility Building 2390 atMCAS Camp Pendleton

• Restoration to dental clin-ic mechanical systems andinterior finishes at the Naval

Stimulus fundsContinued from Page 17

Walk this way: Construction nearlycomplete on downtown pedestrian bridge


If you have parked in thestructure next to the SanDiego Convention Center andnew Hilton hotel to either gosee a game at Petco Park or tovisit the Gaslamp Quarter inthe last few years, chances areyou may have been late.

When Petco Park was built,the intersection to get on ParkBoulevard — formally 12thAvenue — from Harbor Drivewas closed. If you wanted toget across Harbor, you had towalk all the way around toFifth Avenue.

But all this will changesoon, as construction is wellunder way on the new HarborDrive Pedestrian Bridge.

The project entails buildinga 500-foot-long bridge thatwill be 25 feet high and will gofrom the 2,000-space parkingstructure on Harbor Drive tothe main entrance in front ofPetco Park.

It is designed with a curvedspan like an “S” and has a 130-foot, 45-degree angled centerpylon to reinforce the bridgeand to add a unique element.The bridge is made out of 16-foot wide and 3-foot thickconcrete, and stainless steelwith wrapped suspensioncable railing.

The project also involvesinstalling enhanced lightingabove and below the bridge’s

deck and along the center pylonto create a glowing curtain oflight across Harbor Drive.

Conventional metal halidelights, located at the base ofthe cables, will illuminate thecables above. The design alsoincorporates LED under-tread lighting for the stairs.

The project involves plant-ing landscape on the two endsof the bridge, and there will bepublic art on display byMathieu Gregoire.

The Harbor Drive bridge isthe final piece in the Park-to-Bay link project, and is beingbuilt to fulfilling a CaliforniaPublic Utilities Commissionrequirement that calls for apedestrian bridge.

According to the CentreCity Development Corp., theproject is designed to be oneof the longest self-anchoredpedestrian suspension bridgesin the world.

CCDC also says it plans foran at-grade crossing that willinclude pedestrian barriersand enhanced safety crossingtechnologies, thus improvingtraffic circulation and accessto and from the waterfrontand Barrio Logan.

The project is fundedthrough federal, state andlocal agencies includingCaltrans and the Centre CityDevelopment Corp., alongwith private contributions.

The construction budget,

which totals $26.79 million,breaks down as follows: rede-velopment agency, $11.09 mil-lion; California Transpor-tation Commission, $6 mil-lion; Federal Highway Admin-istration, $2.8 million; StateTransportation ImprovementProgram, $2 million; and pri-vate contributions, $4.9 mil-lion.

The Harbor DrivePedestrian Bridge brokeground in October 2008, andthe project is slated to be com-pleted later this winter.

The project officially gotstarted in June 2006, whenthe environmental report wascompleted. In July 2007, aland acquisition was com-plete, and in June 2008 RReeyyeessCCoonnssttrruuccttiioonn IInncc.. was namedthe general contractor.

Although the project seemslike a simple walkway, itinvolves more than 15 architec-ture, engineering and con-struction companies. Theseinclude SSaaffddiiee RRaabbiinneessAArrcchhiitteeccttss;; TT..YY.. LLiinnIInntteerrnnaattiioonnaall, lead bridgeengineer; SSttrraasskkyy && AAnnaatteecchh,structural engineer; LLiinnttvveeddttMMccCCoollll && AAssssoocciiaatteess, civil engi-neer; SSppuurrlloocckk PPooiirriieerr, land-scape architect; SSyysskkaaHHeennnneessssyy GGrroouupp, lighting andvertical transportation; PPrroojjeeccttDDeessiiggnn CCoonnssuullttaannttss, environ-mental planning; NNiinnyyoo &&MMoooorree CCoonnssuullttaannttss, geotechni-

cal engineer; HHaazzaarrddCCoonnssttrruuccttiioonn, cost estimate;and WWiillssoonn && CCoo.., traffic engi-neer.

The city of San Diego is alsoinvolved on this project as anengineer.

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Caltrans, Port of San Diego freeway improvements under wayBByy CCAARRLLOOSS RRIICCOO


If you commute with anyregularity in the central partof the county, it is hard notto run into some sort of con-struction work on the free-ways.

Construction on SanDiego freeways is evident allaround the county, but espe-cially in the central region,where a number of majorprojects are ongoing or slat-ed to begin later this year.These projects total approxi-mately $177 million.

Construction of an HOVlane along Interstate 805just south of the Interstate 5merger got under way thisyear. The $102 million proj-ect also involves construct-ing a northbound directaccess ramp on Interstate805 from Carroll CanyonRoad to the Interstate 5merge. The project calls forextending Carroll CanyonRoad from Scranton Way toSorrento Valley Boulevard.The HOV lane and accessramp are scheduled to becompleted by the end of2012.

Further down onInterstate 805 — in the gold-en triangle — a $21.1 millionproject will begin later thisyear. It consists of convert-ing the current cloverleafinterchange at La JollaVillage Drive to a partialcloverleaf interchange. Thisproject is anticipated to be

completed in fall 2011.A $32 million project is

almost complete along SR52. It involves widening thehighway between Interstate15 and Mast Boulevard, withconstruction of auxiliarylanes in each direction. Thisproject is slated to be com-pleted by the end of the sum-mer.

A new project in 2009calls for the widening ofthree lanes on eastboundInterstate 8 between theSecond Street onramp andGreenfield Drive. This proj-ect is valued at $15.5 millionand is anticipated to be fin-ished in the fourth quarter of2012.

Two smaller projects start-ed at the beginning of thisyear are slated to be com-pleted by the end of 2009.One is slurry seal work on allon-and-off ramps on stateRoute 125 from state Route54 to Mission Gorge Road.This project will cost $3 mil-lion to complete.

The other is a pavementrehabilitation project. Itinvolves work on state Route163 from the I-5 connectionto Washington Street, andhas a price tag of $3.3 mil-lion.

In the county of SanDiego, 20 major freewayconstruction projects areeither ongoing or gettingready to start later this year.All these freeway projectstotal slightly over $1.56 bil-

lion in construction cost andconstruction work beingawarded.

Funding for the projectscomes from a variety ofsources, including the federalstimulus package, federal gastax, Proposition 1B, state gastax, Transnet half-cent salestax, and local contributions.

In addition to the Caltransfreeway projects, the Port ofSan Diego also is working onfreeway project improve-ments, intended to improve“good movement access” tothe Port’s marina terminalsvia San Diego freeways.

Currently there are threesuch projects:

The first is $3.3 millionproject at Civic Center Driveat Harbor Drive for access toand from I-5. These improveflow of traffic through theCivic Center Drive/WilsonAvenue and Civic CenterDrive/Harbor Drive inter-sections. The CivicCenter/Wilson intersectionwill be signalized, and theon-ramp to northbound I-5will be realigned andwidened.

The second project is at10th Avenue and HarborDrive. It involves a two-laneelevated structure fromCrosby Drive over the rail-road tracks and Cesar Chavezand connecting it to HarborDrive. The Port hopes toimprove truck flow and safe-ty for the 10th AvenueMarine Terminal. This work

totals $67.2 million.The third is a proposed

project totaling $118.5 mil-lion. This involves an elevat-ed structure in the median ofHarbor Drive that will con-nect to Interstate 15 over therail tracks, trolley tracks and32nd Street/Norman Scottintersection. It is designed toimprove the flow of traffic inand out of the naval base.

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hospital at MCB CampPendleton

• Child development centerat MCB Camp Pendleton

• Photovoltaic system atMCRD San Diego

• Photovoltaic system atMCB Camp Pendleton

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13771 Danielson St Suite B, Poway CA, 92064P 858.883.2915 • F 858.883.2254 • CA Lic # 851124-B

ww.kdstahl.com

General Construction

Build-to-suite Tenant

Improvements

Medical Biotech

Retail Restaurants

Manufacturing

Industrial

Integrity Honesty

and Uncompromising

Ethical Standards


Affordable housing downtown gets boost with stylish new projectsBByy KKAARREENN WWEEIILL


Mention downtown SanDiego, and people don’t nor-mally think of affordablehousing.

Some new projects down-town resemble more stylish,expensive apartments — buttheir rents range from $237 toslightly more than $1,000 forthose who qualify.

Organizations such asCentre City DevelopmentCorp., Father Joe’s Villagesand the San Diego HousingCommission are heavilyinvolved with development,

and in turn work with localarchitectural firms.

Projects such as theplanned Cedar Gateway and15th & Commercial will alsobenefit the mentally ill orrecovering addicts.

Affordable housing down-town was “lost in the noise” ofthe decade’s early commercialbuilding boom, said BradWiblin, vice president atBBrriiddggee HHoouussiinngg CCoorrpp..

With modern, open designand better management, thenew dwellings are a changefrom “low-income” housing ofthe past, he added.

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Wiblin said the new afford-able housing projects are partof a positive trend.

“I think everybody views itas economic development,” hesaid.

Furthermore, many proper-ty owners are looking toaffordable housing, said EriKameyama, CCDC projectmanager of redevelopment.

Paradoxically, “it’s a reallychallenging time as well,” sheadded. “More pressure is puton local communities to payfor (projects), and that maymean more will be put onhold.”

Here is an overview of proj-ects completed, under way orplanned in downtown SanDiego.

1155tthh aanndd CCoommmmeerrcciiaallFather Joe’s Villages hopes

to start the multi-story struc-ture, located on 1501 ImperialAve., in November.

If all goes well, the 32,765-square-foot building — fea-turing 64 studio apartments— will house tenants in twoyears.

Amenities will include alicensed childcare facility andoutdoor play space. It will alsofeature transitional housingfor single adults.

It “really started as a resultof us getting $6.9 millionfrom the (state) First 5 com-mission,” said MathewPackard, vice president ofdevelopment for Father Joe’s.“Once we received that award,we thought about how to bestuse that money.”

Because state money gener-ally comes after constructionis finished, there was someconcern whether the statewould honor its commit-ments, in light of the currentstate budget crisis.

“We are hopeful, also, thatthe state will be able to pass abudget and honor its fundingcommitments of $7 million,”Packard added.

In the meantime, Packardsaid Father Joe’s is workingwith lenders so the project canbecome a reality.

1166tthh aanndd MMaarrkkeettOpened in February, the

217,115-square-foot, 136-unitbuilding, located at 640 16thSt., is now leased out. Themixed-use project alsoincludes retail space and twolevels of subterranean park-ing. Father Joe’s oversaw theproject, along with CChheellsseeaaDDeevveellooppmmeenntt.

The project represents “thebest practice model for high-density family housing,” withstainless steel appliances andgranite countertops, Packardsaid.

“We’re getting very positivefeedback from tenants,” headded.

Living space for each apart-ment ranges from 553 to 1,300square feet. Occupancy isrestricted to residents earningbetween 30 percent to 65 per-cent of the area median income.Seven units are reserved foradults living with HIV, mentalillness or considered at risk ofbecoming homeless.

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Ten million dollars in multi-family housing funds from thestate of California were to beused, but there is concernwhether the state can sell thebonds.

“The current budget crisismakes us nervous,” Packardsaid. “Until they pass a budgetand send us a check, we’ve gotour fingers crossed.”

PPaarrkkssiiddeeCurrently under construc-

tion at 515 13th St. in the EastVillage, the seven-storyParkside will feature two largeoutside play areas, 13,000square feet of groundfloorretail space and low-flowwater fixtures.

“It’s really a role model forhigh-rise affordable familyhousing,” said Jeff Graham,CCDC vice president of rede-velopment.

He added the $89 millionproject is LEED Silver certi-fied and scheduled to open in2010. Of 229 units, 226 areaffordable and 65 geared forfamilies.

“It was already approved tobe a market-rate condo devel-opment, and that saved thedeveloper a lot of costs goingthough the process,” Grahamadded.

Graham said current finan-cial woes have not affectedParkside’s progress, as allfunding was in place.

CCDC is now compiling an“interest list” of those wantingto live there, Graham said.

CCeeddaarr GGaatteewwaayyTo be located on Cedar

Street, Cedar Gateway isgeared toward moderate tolow-income working classfamilies, said Gary Squire,president of developer

SSqquuiirree PPrrooppeerrttiieess.Designed by JJoohhnn SSiillbbeerr

AArrcchhiitteeccttss, Cedar Gatewaywill feature 54,385 square feetof residential and 4,362square feet of retail space.

At least 23 units will housethose with mental healthissues or those recoveringfrom drug dependency.

Because of issues with severalpublic funding assistance pro-grams, construction has beendelayed until this October.

Last year, with the bankingcrisis in full swing, theCalifornia Housing FinanceAgency stopped making loans.Squire found a new construc-tion and mortgage lender,CCiittiibbaannkk (NYSE: C).

Some Cortez Hill residentsopposed Cedar Gateway at first.CCDC held two communitymeetings so residents couldbetter understand the project.

“It was an important part ofthe process, educating thecommunity,” the CCDC’sGraham said, adding therewill be on-site security.

NNiinntthh aanndd BBrrooaaddwwaayyBridge Housing Corp.

hopes to start on the 16-story,33,000-square-foot buildinglater this year, Wiblin said.

It will feature 250 units, with88 of them reserved for specialneeds residents, he said.

SSttuuddiioo EE AArrcchhiitteeccttss is han-dling the design, with MMVVEE asprincipal architect.

The plan is to build Ninth &Broadway with a large out-door garden, barbecue areasand a photovoltaic componentwrapping the building’ssouthern side as part of itsSilver LEED rating.

Wiblin said the total cost is

UCSD to receive $11 million in incentives to install fuel cellDaily Transcript staff report

The University of California, SanDiego will receive $11 million inincentives for the installation of a fuelcell energy generation and storagesystem through California’s Self-Generation Incentive program.

The award is the largest incentiveever doled out by the CaliforniaPublic Utilities Commission for arenewable energy product and is thenation’s first advanced energy storageproject to receive state incentivefunds.

The system includes a 2.8-megawatt fuel cell and a 2.8-MWstorage system, together costing anestimated $16 million.

The system will allow UCSD tostore power generated during times oflow demand and draw on the powerduring high demand.

The fuel cell is the largest that iscommercially available and will beinstalled by Encinitas-based BBiiooFFuueellssEEnneerrggyy LLLLCC.

FFuueellCCeellll EEnneerrggyy IInncc. of Danbury,Conn., is the manufacturer of the sys-tem, which will convert purifiedmethane gas into electricity withoutcombustion.

Fuel cells produce energy by sepa-

rating the electrons and protons of afuel, such as methane gas, forcing elec-trons to travel through a circuit thatconverts them into electrical power.

The cells operate continuously aslong as the reactant fuel is replen-ished. Methane-powered fuel cells arealready in operation at landfills,wastewater treatment plants and sev-eral breweries throughout the nation.

The methane gas will be collectedat the city of San Diego’s Point LomaWastewater Treatment Plant, puri-fied, compressed and delivered toUCSD by BioFuels Energy. Thewastewater treatment plant’smethane is currently burned off aswaste.

Waste heat generated by the fuelcell will also be used to cool campusbuildings. The system is expected tobe completed in 2010.

“The fuel cell integrated with ener-gy storage is the centerpiece projectfor UC San Diego providing globalleadership in smart grid initiatives,”said Byron Washom, director ofstrategic energy initiatives for UCSD.

Installation of the fuel cell and stor-age system is in line with UCSD’s goalof reducing its carbon footprintthrough energy efficiency and utiliza-

tion of renewable resources. The cam-pus has one of the nation’s mostsophisticated microgrid systems, gen-erating 80 percent of the university’selectricity needs with a 30-MW gasturbine plant and one MW of photo-voltaic solar panels.

The fuel cell and storage system willreduce the university’s carbon dioxidegreenhouse gas emissions by an esti-mated 8,200 tons per year.

California Center for SustainableEnergies, which administers theCPUC’s Self-Generation Incentivewithin San Diego Gas & Electric’sservice area announced the award.

“Advanced energy storage lets ustake the best advantage of renewablegeneration resources and at the sametime, it can improve the reliability ofthe electric system and ensure thelevel of power quality that a modernsociety requires,” said AndrewMcAllister, director of programs forCCSE. “CCSE and UCSD have beenadvocates for inclusion of advancedenergy storage in incentive programsas an important way to develop thisnew marketplace. CCSE is please topartner with UCSD on this and manyother projects.”

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See Downtown on 22


Homebuilder stocks show improvement, buthousing recovery not expected until 2010

For example, BBrrooookkffiieellddHHoommeess CCoorrpp.. (NYSE: BHS),which builds primarily inCalifornia and Washington,D.C., has climbed more than60 percent since the begin-ning of 2009 but remainsdown almost 50 percent fromlast year and down more than85 percent from its price inearly 2005.

Brookfield, which has prop-erties in Chula Vista, ScrippsRanch and San Marcos, trad-ed around $7 in early August.

Some larger, stronger stockshave fared better. The shareprice of KKBB HHoommee (NYSE:KBH), which has local prop-erties in San Diego, Oceansideand Fallbrook, is actually upmore than 4.5 percent from ayear ago but down almost 80percent from its height in2005.

KB Home traded a few dol-lars below $20 in early Augustbut was known to soar abovethe $80 mark during thehousing boom.

The homebuilder has recov-ered more than 35 percentsince January.

In some cases, however,stock performance has only alittle to do with company per-formance. Homebuilder loss-es continued to stack up in thesecond quarter.

Hovnanian took one of thelarger losses in its secondquarter ended April 30, total-ing $118.6 million, or $1.50per share, which was less thanthe second-quarter 2008 netloss of $340.7 million, or$5.29 per share.

CCeenntteexx CCoorrpp.. (NYSE: CTX),which is expected to mergeinto PPuullttee HHoommeess (NYSE:

PHM) this quarter to createthe largest U.S. homebuilder,turned a profit in its fiscal firstquarter ended June 30 on a$410 million tax benefit.Centex posted net income of$85.1 million, or 68 cents pershare, compared to a year-ear-lier net loss of $150.1 million,or $1.21 per share.

Relying solely on profit/lossfigures to gauge companyhealth and performance canbe misleading, said AlanNevin, director of economicresearch for San Diego-basedMMaarrkkeettPPooiinnttee RReeaallttyyAAddvviissoorrss.

“It’s hard to put a finger onreal profits,” he said. “Frankly,I’m not sure that they havetaken all their losses at thispoint.”

Analysts agree that second-quarter impairments were

worse than expected, and bal-ance sheet troubles are farfrom over. Revenues will con-tinue to roll in at lower levelsdue to lower demand andfalling home prices, and com-panies will continue to writedown the value of their land.

“Given our outlook for high-er unemployment, still tightcredit, rising foreclosures andelevated inventory levels, ourestimate for impairmentcharges to represent another30 percent hit to builders’ bookvalues could easily prove con-servative,” JJPPMMoorrggaann (NYSE:JPM) analysts Michael Rehautand Ray Huang wrote in a noteto investors.

Experts aren’t expecting apublic homebuilder to failanytime soon, though. Whiletheir private counterparts arelikely doing better and bene-

fiting from the lack of regula-tory expenses, the publicbuilding companies are sur-vivors, industry observers say.

A housing recovery isexpected to begin late thisyear or in early 2010, with atenuous rise in housing starts.In the meantime, the bestactions homebuilders can takeinclude trimming operatingcosts, improving their mar-gins and stockpiling cash tobetter position themselves forthe recovery, said SSoolleeiillSSeeccuurriittiieess analyst AnnaTorma.

“I think the key is for thebuilders to continue torespond to the pricing thatthey’re seeing on the existinghome market so they can con-tinue to sell homes,” she added.

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BByy RREEBBEECCCCAA GGOOThe Daily Transcript

Most public homebuilderstocks have rallied substantial-ly from recent lows, butexperts and analysts remainwary, citing a long, tepid hous-ing recovery as well as contin-ued troubles related to impair-ments and low demand.

“If you look at the funda-mentals of the stocks, you’renot going to see somethingthat’s extremely healthy,” saidJohn Mecklenburg, a 25-yearindustry veteran and formerdivision president of now-bankrupt John Laing Homes.“I think what you’re seeing is abit of guarded optimism as itrelates to the future, a buy-and-hold mentality.”

For the handful of publichomebuilders with a presencein San Diego, stock priceshave showed positive move-ment since the beginning ofthis year, whether in a jump of7 percent by LLeennnnaarr CCoorrpp..(NYSE: LEN) or 155 percentby HHoovvnnaanniiaann EEnntteerrpprriisseess(NYSE: HOV).

It’s no surprise, given therecent bit of good housingnews combined with a for-ward-looking, easily excitablemarket, with governmentstimulus programs furthergreasing the skids of risinginvestor optimism.

Home sales have jumpedfrom May to June: 3.6 percentnationwide and 9 percent inSan Diego, according to theNational Association ofRealtors and the North SanDiego County Association ofRealtors’ HomeDex, respec-tively.

Median prices in San Diegohave also crept up month tomonth, although they remaindown on the national level.

Of course, the recent positivehousing industry figures arestill low when compared to lastyear, a trend also reflected inthe homebuilding stocks.

Public homebuildersremain deep in the trough cre-ated when the market startedto slip in 2005. Most shownegative performance in a 52-week period and look tragicwhen compared to their peaksfour years ago.

last fall was estimated to cost$530 million.

Since then, however, realestate values have dropped andnew construction has slowed.

But the decrease in projectshas led to a reduction in theprice for certain constructionmaterials, and the economy hasled to new financing options.

The federal government isoffering “Build America”bonds, which are taxablebonds subsidized by the gov-ernment. The program is setto expire in 2010.

“We can hit or beat ournumbers if we’re able to startconstruction in the nearterm,” Gaulke said.

Gerding Edlen would like todevelop the other two blocksin the complex, but is focusingon the first phase now.

The whole project couldeventually be put on the ballot.A section in the city charterstipulates that any large proj-ect that has any private benefitmust be put before the voters.

Rath said Gerding’s initialproposal would fit that crite-ria, but even if it didn’t,Sanders already has said hewould let the voters weigh inon the project.

“The people should have aright to vote on whether ornot there’s a new city hall,”Rath said of the mayor’s view.

City councilman KevinFaulconer, whose districtincludes the city hall property,wants to make sure the proj-ect is economically feasible.

“For the most part, he does-n’t have a problem with con-tinuing to talk, but he hassome certain things he’d liketo see in the ENA,” said TonyManolatos, Faulconer’sspokesman. “He wants tomake sure it’s a good deal forthe city and the taxpayer.”

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Civic CenterContinued from Page 18


slightly over $65 million.CCDC has approved the proj-ect, but it will head to the SanDiego City RedevelopmentAgency board for a final OK.

CCDC will loan $21 millionto get the ball rolling, butBridge must first line upfinancing from other sources,Wiblin said.

2222nndd aanndd CCoommmmeerrcciiaallAs a three-building, LEED-

certified project in BarrioLogan, 22nd and Commercialwould offer senior, family andmarket rate housing.

However, at this point, it isonly a concept because there isno money to start construction.

A city committee justreviewed the concept, said EriKameyama, project managerof redevelopment for CCDC.

“It would be really big, andwe would only be funding thesecond phase,” Kameyama said.“We’re having problems withthe lenders, which have morestringent criteria, so more localfunding is required, (but) we’repushing for it to happen.”

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DowntownContinued from Page 20

SDSU finally gets facility for Alumni Association BByy EELLIIZZAABBEETTHH MMAALLLLOOYY


The state of California’sbudget woes are already hav-ing an adverse effect on publicuniversities and colleges, butthe alumni of San Diego StateUniversity are stepping in tohelp improve the home of theAztecs.

Built mostly by donations, anew Alumni Associationbuilding is under constructionat SDSU, and is scheduled forcompletion in October. TheParma Payne Goodall AlumniCenter is the first time in theschool’s history that theAlumni Association has hadits own building.

“(It) will mean a lot for theuniversity’s alumni to have aplace they can call home,” saidGina Jacobs, media relationsmanager for SDSU.

The two story, 30,000-square-foot center will belocated across the street fromthe Viejas Arena (formerly

known as the Cox Arena) andnext to the Athletics Center.

It’s scheduled to include amultipurpose outdoor pavil-ion area overlooking the ath-letic fields and Tony GwynnStadium, a Great HallBallroom for entertaining upto 260 people, a lounge andlibrary with Aztecs memora-bilia, a boardroom and20,000 square feet of meetingand gathering space.

Finishing work is beingcompleted both inside andout at the new Parma PayneGoodall Alumni Center con-struction site at 55th Streetand Hardy Avenue.

“On the inside, practicallythe entire building is paintedout,” construction managerSteve Nelson of MMiiddwweessttGGeenneerraall IInncc.. said on theschool’s Web site. “A substan-

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New cruise ship terminal on Broadway Pier to be Port’s first green facilityShore power system

will reduce airpollution

BByy MMAARRGGUUEERRIITTEE EELLIICCOONNEEPort of San Diego

A new cruise ship terminal tohelp service the nearly 1 millionyearly passengers who visit SanDiego is under construction atthe Port of San Diego. The two-story terminal, to be built onBroadway Pier on San DiegoBay, will be 52,000 square feetand have room to accommodateup to 2,600 passengers.

Designed by BBeerrmmeelllloo AAjjaammiill&& PPaarrttnneerrss, a multidisciplinary,award-winning design andproject management firm head-quartered in Miami, the termi-nal is being designed as aLeadership in Energy &Environmental Design certifiedbuilding, meaning it will bedesigned to use less water, lessenergy and produce fewer pol-lutants.

JJaayynneess CCoorrpp.., a constructioncompany with offices through-out the Southwest, is the con-tractor on the project, which isscheduled to be open for busi-ness in December 2010. Theconstruction contract alsoincludes a mobile passengergangway and seismic improve-ments to the pier. The estimat-ed construction cost is $21.1million.

In addition to cruise terminaloperations, the terminal willhouse offices for the U.S.Customs & Border Protection.There will be space that can beused for public and specialevents on days when cruiseships aren’t in port. A publicspace will be open in the back ofthe building, with an openpavilion area that will provideviews of the bay. On the secondfloor, another area will be avail-able for public events.

Construction elements thatwill help the project qualify forLEED certification include aphotovoltaic system that willprovide at least 12 percent ofthe building’s energy. Highlyreflective roof paint, low-flowtoilets, urinals and faucets willalso help keep water and energycosts down. Low-emittingmaterials such as low-vocpaints (paints that contain min-imal amounts of volatile organ-

ic compounds), as well as low-voc carpets and sealants willalso be incorporated.

Not only will the new cruiseship terminal help the environ-ment by using sustainable andenergy-conserving materials, itwill include another componentto help reduce air pollution.

Equipment will be installedat the new terminal, as well asthe Port’s main cruise ship ter-minal on B Street, to allowcruise ships to plug into shorepower while berthed. By doingso, it eliminates the need forvessels to keep their dieselengines running to providepower. According to theEnvironmental HealthCoalition, installation of theshore power system for cruiseships has the potential toreduce 300 tons of nitrogenoxides per year. Nitrogen oxidesare harmful emissions thatcome from ships, cars, trucksand power plants.

The estimated cost for pro-viding shore power to the newBroadway Pier cruise ship ter-minal and the B Street CruiseShip Terminal is $7 million.The Port contracted withCCoocchhrraann IInncc.., a Washingtonfirm that installed a similarproject in Seattle. Cochran willprovide and install the equip-ment, which includes a maincircuit breaker, control battery,protection relays, transitionsection to transformer and anequipment enclosure. It alsoincludes a transformer with 20-megawatt capacity, dual voltageoutput and cooling equipment.Additional electrical equipmentincludes a capacitor circuitbreaker, dual voltage breakers,and rated disconnects for eachship connection. Installing theequipment will include trenchwork, conduit runs, pier workand fencing.

The Port is working with SanDiego Gas & Electric to providethe needed 12 megawatts ofpower at the cruise ship termi-nals.

The Port anticipates theshore power at the B StreetCruise Ship Terminal will beoperational by October 2010and that shore power at the newBroadway Pier Cruise ShipTerminal will be available when

Fresh & Easy to open next year in North ParkDaily Transcript staff report

Construction of a new21,000-square-foot shop-ping center, to be anchoredby Fresh & EasyNeighborhood Market, isunder way in North Park.

The $11 million project atthe southeast corner ofUniversity Avenue and 32ndStreet is expected to be com-pleted in the third quarter of2010.

Fresh & Easy will occupyapproximately 14,000square feet above a single-level parking garage.Customers will have directaccess from the parkingstructure into the store byway of a glass elevator thatfronts University Avenue.

In addition to Fresh &Easy, San Diego National

Bank will relocate its exist-ing North Park branch fromthe same intersection to a4,300-square-foot building.

The SSaann DDiieeggoo NNaattiioonnaallBBaannkk building and an adja-cent 1,100-square-footbuilding will have access toa surface level parking lotlocated behind the buildingsand accessed from both32nd Street and UniversityAvenue. An additional2,000-square-foot space islocated at the corner ofUniversity Avenue andBancroft Street below theFresh & Easy.

The combined 3,100square feet represent theonly remaining space avail-able for lease in the project.

The developer isCarlsbad-based MMeerriiddiiaann

PPrrooppeerrttiieess with MikeKalscheur, a principal. Theproject designer is MapleM3 Architects.

Squeezing over 21,000square feet onto a site that’sless than an acre, has 14 feetof elevation change and analley running through thecenter of it was certainly achallenge but we’re thrilledwith the outcome,” saidKeith Minnie, senior projectmanager with MMaappllee MM33AArrcchhiitteeccttss.

WW hh ii tt ii nn gg -- TT uu rr nn ee rrCCoonnttrraaccttiinngg is the generalcontractor and Schwerin &Associates handled civilengineering design. Leasingbrokerage is being handledby Joe Wojdowski, atEEppsstteeeenn && AAssssoocciiaatteess.

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See SDSU on 24

See Terminal on 24


Intended luxury condo project to provide affordable housing downtownBByy MMOONNIICCAA UUNNHHOOLLDD


Among the newest addi-tions to San Diego’s skyline isTen Fifty B, a 23-story afford-able housing project owned byAAffffiirrmmeedd HHoouussiinngg GGrroouupp.

Located in downtown SanDiego’s East Village neighbor-hood, the building will be thetallest affordable housingproject on the West Coast.

Once Ten Fifty B is com-pleted in May 2010, the

19,994-square-foot sky-scraper will be home to 229families and individuals earn-ing between 30 percent and60 percent of the area medianincome.

The building includes 68studio, 57 one-bedroom, 32two-bedroom and 73 three-bedroom apartments.

Rents will depend on apart-ment size and income, rangingfrom as low as $433 for a stu-dio apartment up to $1,437 for

a four-bedroom apartment.The site was originally

owned by KKBB HHoommeess (NYSE:KBH), which planned to builda luxury condominium com-plex. However, the developerabandoned the project in theplanning phases after theeconomy soured.

Affirmed Housing Groupstepped in with plans to buildan $89 million affordablehousing complex with a $34million grant from Centre City

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Development Corp., down-town San Diego’s redevelop-ment agency.

Rather than move throughthe permitting process for anew development, AffirmedHousing opted to build with-in the building envelope forwhich KB Homes hadalready received the neces-sary approvals. Architecturefirm MMaarrttiinneezz && CCuuttrrii CCoorrpp..helped adapt the luxuryhigh-rise to a comfortable

yet cost-efficient affordablehousing project.

The building includesground-floor retail space andthree levels of undergroundparking containing 124spaces. Ten Fifty B will have amodern façade. Though it willoccupy an entire city block,the building is broken up intosections covered in stone,glass, stucco and brightsplashes of yellow and bluecolor.

The interior of the buildingwas designed to provide resi-dents a good quality of lifewith plenty of common spaceand high-quality buildingmaterials, said architectDavid Priest of Martinez &Cutri. Architects envisionedthe building to provide anenvironment very differentfrom the affordable resi-dences built in the 1960s andreferred to as “the projects,”Priest said.

“It was difficult for peopleto have a high quality of lifedue to small living spacesand the materials that wereused,” Priest said of suchprojects.

The building is targetingLEED Silver certificationfrom the U.S. Green BuildingCouncil. Green building mate-

rials include high-perform-ance glass, which helps reducethe need for heating and cool-ing, recycled building materi-als, high-efficiency lighting,and designated parkingspaces for high-mileage vehi-cles and racks to hold 85 bicy-cles. The building alsoincludes a solar hot water sys-tem and will generate 2.5 per-cent of the power it needswith a photovoltaic solar arrayon the roof.

Among the amenitiesoffered to residents are a com-munity room, on-site comput-er lab, laundry rooms, twopublic outdoor terraces, firepits and barbecues, tot lotsand 124 parking spaces.

TTuurrnneerr CCoonnssttrruuccttiioonn is thegeneral contractor on theproject.

Ten Fifty B has already gen-erated interest from morepeople than will be able callthe building home once it iscompleted. Though AffirmedHousing has not yet begunaccepting rental applicationsfor the project, nearly 2,000people have entered theirname on the interest list, saidYvonne DeCarlo of AffirmedHousing Group.

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San Diego sees 14.4% dropin construction employment


During the past 12 months,construction employmenthas taken a dip in San Diego,but it is still relatively lowwhen compared to other met-ropolitan areas in the nationand in California, accordingto a national analysis by theAssociated GeneralContractors of America.

The study shows that fromJune 2008 through June2009, 11,200 jobs were lost,which brings the total num-ber of employed construction

workers to 66,700. This is a14.4 percent drop from a yearago.

“These numbers reflectboth the residential and non-residential sectors,” said AGCChief Economist KenSimonson. “This is why thenumbers are so down acrossthe board nationally. If thereport only looked at nonres-idential, then the numberswouldn’t be so down.”

Local construction expertsagree that these numbers are

See Employment on 24


the new terminal is scheduledto open.

Last year, 297 cruise shipscalled on the Port of SanDiego. Each of these cruiseships has an economic impactof up to $2 million on theregion. That number is calcu-lated from passenger spendingand the businesses that servethe cruise lines. These includeflorists, food suppliers, linencompanies, cleaning compa-nies and bus and transporta-tion services.

The Port has been workingon ways to improve its cruiseship terminal for severalyears. The new terminal willallow the Port to continuewith its successful cruise oper-ations and allow the region tocontinue to benefit economi-cally.

Elicone is a spokeswomanfor the Port of San Diego.

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TerminalContinued from Page 22

tial amount of the ceiling gridis in and the tiling in the rest-rooms is about half done.”

Roofing tiles recoveredfrom the building that for-merly housed the SDSUAlumni Association awaitinstallation of custom guttersbefore they may be placed.Second-floor terraces arereceiving “traffic topping,”which requires several appli-cations and helps with weath-erproofing.

A grand opening for theCenter is planned for home-coming weekend, Oct. 17.

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SDSUContinued from Page 22

reflective of what they haveseen over the past year in SanDiego.

“These numbers seem rea-sonable,” said RRooeellCCoonnssttrruuccttiioonn President KenElliott, who added that mostof the work in San Diegoright now is coming from themilitary, school districts andgovernment agencies likeCaltrans.

Jim Ryan, executive vicepresident of the local AGCchapter, said the analysis is agood indicator of the localconstruction employmentmarket.

“Over the next year I willpredict the (employment)numbers will increase,because of all the militarywork coming,” Ryan said.

President and CEO of theAssociated Builders andContractors San Diego chap-ter George Hawkins said thathe wouldn’t disagree with the

14.4 percent drop in employ-ment AGC is reporting, andthat he sees a “glimmer” ofhope for the next 12 months,due to the very recent spike injobs journeymen havereceived.

In California overall, theAGC study shows a largerpercentage of constructionjobs were lost when com-pared to San Diego.

In the last 12 months, thestate has seen an 18.9 percentdrop and a total of 152,000jobs lost.

The report also stated thatthere are currently 653,400employed construction work-ers across California.

The analysis, which ranksthe 12-month constructionemployment change report-ed by the Bureau of LaborStatistics for 352 metroareas, shows that few placesin the United States havebeen spared the widespreaddownturn in constructionemployment over the pastyear.

San Diego ranks 124 out of352 metropolitan cities in thenation in terms of lowest per-centage change in construc-tion employment since June2008.

Construction employmentdeclined in all but 19 commu-nities in the United States.

The worst hit werePascagoula, Miss., andReno/Sparks, Nev. — bothlost one out of every threeconstruction jobs over thepast year.

More than 200 metropoli-tan areas suffered double-digit percentage declines inconstruction employment.

Only 10 cities saw increasesin construction employmentsince the previous June.

These include Columbus,Ind. — where constructionemployment jumped morethan 31 percent — and theWeirton-Steubenville areaalong the West Virginia-Ohioborder, where constructionemployment rose almost 17percent.

Nine other metro-areassaw no change in construc-tion employment.

“Construction workersremain, unfortunately, on theleading edge of job lossesduring this recession,”Simonson said. “While othersectors of the economy havebeen hit hard, constructionemployment has been devas-tated.”

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EmploymentContinued from Page 23

Stimulus funds to offer local youth jobs, solar industry trainingBByy MMOONNIICCAA UUNNHHOOLLDD


Highways, federal buildingsand border crossings are onlya few of the projects to bebuilt with funding from theAmerican Recovery andReinvestment Act. Federalstimulus dollars will also givelocal youth the training andexperience necessary to buildcareers in a variety of fields,including the green industry.

The San Diego Regionreceived $10.5 million in fed-eral stimulus funds to create3,200 jobs for youth ages 14 to24, according to Mayor JerrySanders’ office.

The Hire-a-Youth programwill be administered by SanDiego Workforce Partnership,which is joining with a host ofservice providers, nonprofitsand businesses to provide jobopportunities in a variety offields.

One such program is

administered by Metro UnitedMethodist Urban Ministry inpartnership with GridAlternatives. Ten youth havecurrently been hired on for theprogram and there are plansto hire more, said Laila Aziz,program manager for UnitedMethodist Urban Ministry.

Youth are trained to installsolar panels on low-incomehomes. The most recentinstallation was completed inMarch on four homes built byHabitat for Humanity in theMount Hope neighborhood.

In addition to serving theircommunities, youth in theprogram will earn a NorthAmerican Board of CertifiedEnergy Practitioners (NAB-CEP) certificate, which willlikely help them secure theirnext job in the solar industry.

The NABCEP certificaterequires education aboutOSHA regulations for electri-cal systems and knowledge of

the workings of photovoltaicsolar panels. Youth willreceive training on electricaldesign and selecting theappropriate system for a par-ticular home or business.

The certification is currentlyin such high demand, Azizexpects that 80 percent to 90percent of the youth who com-plete the program will go on towork in the solar industry.

“It’s a good opportunity,”said 22-year-old GiuseppeMarquez, who is workingthrough the Hire-a-Youthprogram. “It (the solar indus-try) is going to grow.”

After completing the pro-gram Marquez hopes to find agreen job, possibly working asa solar installer, he said.

While most youth in theHire-a-Youth program arepaid minimum wage, $8.25per hour, youth involved withGrid Alternatives will be paid$10 an hour due to the spe-

cialized training they arerequired to receive, Aziz said.Youth hired into the greentraining program will work 40hours a week for the durationof the program.

In order to qualify, youthmust meet certain incomerequirements. A youth thatdoes not qualify as a depend-ent must have an annualincome of less than $10,828per year, and the requirementincreases by $5,996 for eachadditional family member. Ayouth from a family of fourmust have an annual familyincome of less than $29,980.

The Hire-a-Youth programbegan May 1 and will runthrough Sept. 30. Sanders andother elected officials willhold a press conference June3 at Jackie Robinson YMCAto announce the start of theprogram.

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soaring dimensions 2009

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