LA JOLLA · 2017-06-02 · Advertising SALES & MARKETING DIRECTOR Rebeca Page Get in the loop with SD Metro’s Daily Business Report. Sign up for daily emails on the latest business

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Empty storefronts, horrible traffic, parking nightmares blemish La Jolla’sonce-pristine image PAGE 7

LA JOLLAThe Vanishing Village

NO. 5 VOL. XXXII

Women Who Impact San Diego 2017 PAGE 10

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Chairman | CEORobert Page

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PublisherRebeca Page

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Managing EditorManny Cruz

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Graphic DesignerChristopher Baker

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Photography/IllustrationDavid Rottenberg

Contributing WritersJennifer CoburnRandi Crawford

AdvertisingSALES & MARKETING DIRECTOR

Rebeca Page

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All real estate advertising in this newspaper is subject to the FairHousing Act which makes it illegal to advertise “any Preference lim-itation or discrimination based on race, color, religion, sex, handi-cap, familial status, or national origin, or an intention, to make anypreference, limitation or discrimination. “Familial status includes chil-dren under the age of 18 living with parents or legal custodians;pregnant women and people securing custody of children under18. This magazine will not knowingly accept any advertising for realestate which in in violation of this law. Our readers are hereby in-formed that all dwellings advertised in this magazine are availableon an equal opportunity basis. To complain of discrimination callHUD Toll-Free at 1-800-669-9777. Th Toll-free telephone number forthe hearing impaired is 1-800-927-9275.

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Vanishing La JollaEmpty storefronts, horrible traffic and parking problemsare putting a blemish on La Jolla’s once prestine image.Page 7.

2017 | ISSUE 5 Volume XXXII

Our mission is to always provide quality journalism for our readers by being

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Women Who Impact San DiegoOur choices for Women Who Impact San Diego.

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Tom HomOnly his family and a few close friends are aware of the artistic talents ofTom Hom, a legend in the Chinese American community and in the hallsof City Hall and the state Legislature. The San Diego Chinese Historical Mu-seum is letting others view Hom’s artistic achievements through a new ex-hibit: “Unseen Portrait: The Art of Tom Hom.”

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Commercial Real EstateA new nonprofit organization, the Association for Commercial Tenants, isfighting back against the unethical practice of dual-agency brokerage.

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California Squashes Its YoungIn this era of anti-Trump resistance, many progressives see California as amodel of enlightenment. Yet if one looks at the effects of the state’s poli-cies on key Democratic constituencies, millennials, minorities, and the poor— the picture is dismal.

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Cubic’s Virtual Ticket Agent in test

SAN DIEGOSCENE

NextBus, Cubic’s Real-Time Passenger Information business, pre-sented its Cubic Virtual Ticket Agent to its first U.S. airport industryaudience at the 89th annual American Association of Airport Execu-tives earlier this month.

The Cubic Virtual Ticket Agent is an innovative hybrid of a virtualwalk-up ticket office, video-linked call center and ticket vending ma-chine, which helps public transit agencies to decrease or eliminate theneed for customer service representatives at the least busy stations on arail line.

The technology makes important customer information available inremote locations where there is limited space for a full-ticket office. Itcan also help ease congestion at locations during peak hours thanks toits efficiency and speed of response, according to Cubic. Customer serv-ice operators can remotely answer customer questions, offer adviceabout best fares and reassure passengers about their onward travel. It isalso a practical solution for airports with links to public transportationplus a number of other applications for airports and airlines.

A trial at the U.K.’s Stansted Airport, in partnership with train op-erating company Abellio Greater Anglia, has received positive en-dorsements since its October 2015 debut. Travelers cite the ease of useand how much they enjoyed the experience of talking to, and seeing viavideo link, a remote agent. The Virtual Ticket Agent has received threeindustry awards in the U.K. since the start of the Stansted Airport trial.

Cubic Business Unit to Debut its VirtualTicket Agent to Airport Executives


San Diego is one of the most improvedenergy efficient cities in the country, ac-cording to the American Council for anEnergy-Efficient Economy’s 2017 CityEnergy Efficiency Scorecard. SanDiego moved into 13th place overall witha 54.5 percent score and was recognized asthe second most-improved city from theACEEE’s 2015 Scorecard.

“This new ranking shows how far we’vecome in creating a more energy efficientcity in recent years,” said Mayor Kevin L.Faulconer. “We’re now the No. 1 city forsolar panel installations in the country, weare using cleaner-burning fuels in our cityvehicles and we have committed to pow-ering our city by 100 percent renewable en-ergy. With the passage of our landmarkClimate Action Plan, we’re setting the ex-ample for how to build a better and cleanerfuture for the next generation.”

ACEEE’s City Energy EfficiencyScorecard ranks US cities based on thestrength of their policies and programs ad-

vancing energy efficiency in local govern-ment, buildings, transportation, and acrosstheir communities.

A news conference on May 10 an-nouncing the 2017 Scorecard rankings alsoprovided an opportunity for the city’sChief Sustainability Officer, Cody Hoovento highlight San Diego’s position as an up-and-coming city for energy efficiency pol-icy. The city’s substantial scoringimprovement was primarily due to theadoption of the Climate Action Plan

adopted by City Council in 2015 and itsgoals to reduce energy use in homes andgreenhouse gas emissions throughout thecommunity.

“Our department views energy efficiencyas central to achieving the city’s ClimateAction Plan initiatives,” said Environmen-tal Services Department Director Mario X.Sierra. “San Diego’s efforts to address cli-mate change serves as a model and hope-fully a motivator for other cities to improvetheir energy efficiency.”

San Diego Metropolitan Transit System’s buses powered by clean propane gas.

Sanford Burnham Prebys Scientist Joins Forces to FightChildhood Brain Cancer

San Diego Ranked 13th in Nation on National Energy Efficiency Scorecard

Rady Children’s Institute for Ge-nomic Medicine (RCIGM) announcedthat Robert Wechsler-Reya has beennamed program director for the JosephClayes III Research Center for Neuro-Oncology and Genomics. Wechsler-Reya, a professor at Sanford BurnhamPrebys Medical Discovery Institute, willretain his position as director of theTumor Initiation and Maintenance Pro-gram at SBP’s NCI-designated CancerCenter and will hold a joint appoint-ment at the Institute for Genomic Med-icine.

The Joseph Clayes III Research Cen-ter for Neuro-Oncology and Genomicsis applying state-of-the-art sequencingand analysis technologies to each pa-tient’s tumor to establish a profile—afingerprint—that is used to tailor ther-

apy. This includes rapid whole genomesequencing, RNA sequencing, and epi-genetic analysis on every child’s tumor.

The San Diego County investment poolhas reached an all-time high of $10.5 billionwhile maintaining a “AAA” rating, CountyTreasurer-Tax Collector Dan McAllister an-nounced.

The pool, managed by the County Treas-ury, is a local government fund comprised ofmoney from more than 200 public agencies.Agencies that are required to invest theirmoney in the fund include the county, all 42local public school districts, five communitycollege districts, and water and fire districts.Voluntary participants include the SanDiego Regional Airport Authority,SANDAG, MTS, and other special districts.

For 17 consecutive years, the investmentpool has received a “AAA” rating. This year,Fitch Ratings indicated the pool has thehighest underlying credit quality (or lowestvulnerability to default) and a very low sen-sitivity to market risk.

San Diego County InvestmentPool Reaches $10.5 Billion

Robert Wechsler-Reya

SA N D I EG O S C E N E


“Think globally, act locally,” coined byDavid Brower in 1970, is often associatedwith the environmental movement. But Ibelieve that if town centers are to survive,it may be the only way to fight against theseismic shift taking place all over the coun-try with respect to how people shop andspend their time.

I moved to California in 1998. My hus-band and I looked at homes in La Jolla, aplace we had never been before, and could-n’t get over the sheer beauty. It felt like wewere in Europe with the homes on thehills, overlooking the bluffs and the oceanbelow. It was magnificent. And in the heartof this beautiful setting was the downtownwith Prospect and Girard streets thatboasted lots of people shopping, eating andsimply strolling on a beautiful, sunny, Cal-ifornia day.

Today, almost 20 years later, La Jolla,with approximately 48,000 residents is stillsurrounded by its beauty, with exquisitehomes and so much to offer, including:UCSD Scripps Institute of Oceanography,museums, the La Jolla Playhouse, fine din-ing and beautiful hotels. Tourists can watchthe seals and sea lions, snorkel, kayak, hitup the Birch Aquarium, play golf at Tor-rey Pines overlooking the ocean, eat, sipspecialty coffee and shop.

Needless to say, La Jolla has it all. Butdoes it?

Today, when you walk up and down thetwo main streets in La Jolla, you will see alot of empty storefronts and, frankly, it nolonger holds that pristine look.

I spoke with several people who havelived in La Jolla for years (store owners,Realtors, restaurateurs), and have watchedthe decline. They have seen retail storescome and go. When I questioned people, Igot a lot of great feedback, but there aresome things that everyone universally

agrees on, and they are obvious:1. Getting in and out of La Jolla is very

challenging because there is only one road.2. Traffic is horrible. 3. Parking is a night-mare.

I had some people tell me that La Jollaconsists of these three things: restaurants,juice bars and gyms. There are lots oftrendy gyms, regular gyms, yoga studios,Pilates studios, and one-on-one trainingfacilities. One retailer told me about a newgym that was started by a few “hot Aus-tralian men with hot accents and even hot-ter bodies.” Apparently, that’s the place tobe right now. And juice bars are poppingup on every corner. Each one, more pop-ular than the next.

While population demographics con-tribute to the success or failure of a down-town including age, education, income,housing ownership, home pricing and thetown’s employment base, what I’m learningis that the majority of shopping in La Jolla isfrom tourists, and they aren’t shopping. LaJolla definitely has the demographics, but thelocals don’t shop in town because there’s not

much there and it’s inconvenient. Scott Patrick, owner of Village Gifts and

Engraving, moved his business from LaJolla to Solana Beach. He believes that sev-eral factors are contributing to the prob-lem. “Online shopping has changedbehavior. Now people can push a buttonand have something delivered to their doorin two days,” he said. While his business inparticular consisted of locals, he said thatit’s hard to grow a business when peopledon’t drive in and can’t find parking. Healso said that the rents are astronomical, es-pecially on Prospect, and overall La Jolla isgetting stale.

“La Jolla really doesn’t have a nightlifeto speak of, nobody shops except fortourists during the summer, and the land-lords drive the tenants out with the highrents,” said Marc Lipschitz, a Realtor whohas been in La Jolla his whole life.

Sheryll Jackman opened her luxuriousSeaside Homes, selling high-end homefurnishings, in 2009, on Herschel Streetimmediately behind Brooks Brothers. Shesaid her initial lease was attractive but thatthe escalation clauses and falling salesforced her to close the business. She closedSeaside Homes in 2014.

“When combined with our overhead,including the escalating costs of employ-ees, it was impossible to cover the totalcosts by the gross receipts being generateddue to the changes in the distributionchannels,” said Jackman. “These changes indistribution channels and the way peoplewere sourcing home furnishings, i.e., theInternet, imports from Asia, shipping con-cessions to individuals not available tobusinesses, the public’s expectations ofdeep discounts leaving retail vendors verylittle in the way of margins necessary togenerate any kind of profits.”

Jackman also said that local custom fab-

LA JOLLA:The Vanishing VillageEmpty storefronts, horrible traffic, parking nightmares blemish La Jolla’s once-pristine image

By Randi Crawford

Ascot Shop owner Andy White in front of oneof La Jolla’s trendier businesses. The storedoes a tremendous amount of work to bringpeople in the door, and keep them there.


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rication of furnishings, espe-cially upholstery “all led to therealization that we could nolonger sustain the high-endservices and products that hadbeen our trademark.”

Jackman said businesses inLa Jolla are “at the mercy ofthe city of San Diego” and“its much larger businesstaxes, special promo taxes,and a myriad of other taxesthat businesses have to navi-gate and pay for just to dobusiness in La Jolla to helpcarry the rest of the city.”

She said she believes an-other impediment whichbusinesses in La Jolla have to cross is thelack of major tourist hotels in the village.“With convention hotels located miles away,it is most likely that their occupants wouldnot visit the La Jolla Village.”

Jackman also thought that the ObamaAdministration, when it took office in2009, would “do something to help spurthe economy. Silly Me!”

The Ascot Shop does a tremendousamount of work to bring people in thedoor, and keep them there. They hostevents every other weekend, they havetrunk shows, and they stay progressive tokeep up with customer needs.

AndyWhite, Ascot Shop owner, has per-sonally seen several “big corporate retailchains” come and go within a three- to six-month time period. “The rents are high andthere is virtually no foot traffic. There are alot of tourists, but they just aren’t doing thattype of shopping,” said White. He said thatsomeone will come in from out of town, talkwith him for 20 minutes, walk around thestore admiring everything, and then leave.

White said his store is like a “museum”to travelers. When asked why he no longercarried the brand Vineyard Vines, he saidit’s because no matter how much inventoryhe carries, if he doesn’t have exactly what acustomer wants at that exact moment, theywill go home and order it online. Even ifWhite offers to order it and have it shippeddirectly to their house, they prefer to orderit online. The Ascot Shop La Jolla is a fam-ily run business and they aren’t going any-

where. They may watch thebig guys come and go, (LikeSaks Fifth Avenue whichtried not once, but twice inLa Jolla), but this family isdetermined to keep thatsomething special going.

Not so for another re-tailer. After 62 years, theBurns Pharmacy closed in2014, bringing to an end astoried history in La Jolla.Burns was one of La Jolla’soldest independentlyowned retail stores when itshut it doors in April, 2014.

Wayne Woods, a co-owner, said the financial via-

bility of an independent drugstore on GirardAvenue was a driving force in their decision.

At the time of the closing, Woods toldthe La Jolla Light that “in recent years in-surance companies has narrowed profitsmargins such that the pharmacy is nolonger a profitable business.” He addedthat mail order pharmacies had also takenits toll on Burns.

Warwick’s is the country’s oldest familyowned and operated bookstore located inthe heart of La Jolla, but how do they stay inbusiness with Amazon taking over theworld? They sell books as well as specialtygifts, stationary and colorful office supplies.I met with Nancy Warwick and JulieSlavinsky, director of events and communityrelations, and they had a lot to say. I specif-ically asked them about their customer base,because it reaches far and wide, and War-wick’s does a lot to keep their customershappy. If you just go to their events calen-dar, it may look busier than your own. Theyhave weekly author readings, a blog on theirwebsite, coffee every other Tuesday withtheir customers to discuss what’s new andworth reading, and an entire kid’s corner.

Warwick’s main attraction is the authorsthey bring into the store for book signings.

Despite the empty storefronts on Girardand Prospect, Warwick and Slavinsky re-main positive about La Jolla. There are alot of wonderful dining establishments forlunch and dinner that boast a thrivingbusiness. In fact, during lunchtime, War-wick always feels good to see so many peo-

ple out and about because it makes La Jollafeel like it’s alive.

They agreed that it could use mainte-nance and upkeep, which is why they arehappy with the MAD (Maintenance As-sessment District) funds, which will becoming this year to start to make La Jollalook beautiful again. The community will begetting $502,000 annually to enhance thecommunity including the landscape, streetand sidewalk cleaning, litter and graffitiabatement, upgraded trash cans, benches,public art and tree canopies. This shouldhelp attract more independent store ownersto consider La Jolla to open up for business.

They both felt that independent shopswould do well, but they really like the ideaof a “food hall/marketplace.” Their visionincludes a fine cheese shop, a chocolatier, abutcher with organic grass-fed meats, abakery, an olive vendor, a wine shop andspecialty foods. Something like that wouldoffer the locals and tourists a place to cometogether and have the experience they arelooking for, while reinvigorating the village.

Amazon has clearly impacted their busi-ness. Their customer base comes in regu-larly, but their book sales are off. After ourconversation, I realize that shopping withAmazon isn’t just a threat to retailers, it’s athreat to all of us, and we don’t even realizethat we are the ones creating it. Almostnothing compares to the convenience ofAmazon. In fact, nothing even comes close.But what we aren’t focusing on is the col-lateral damage that online shopping is cre-ating within our own communities.

A study by Civic Economics analyzedAmazon and empty storefronts and con-cluded that the reality of the limited demandfor retail space will ultimately affect everybusiness district and shopping center inAmerica. In 2015, Amazon sold $55.6 bil-lion worth of retail goods nationwide, whileavoiding $704 million in sales taxes. Thesesales are the equivalent of 39,000 retail store-fronts or 133 million square feet of com-mercial space, which might have paid $528milion in property taxes. That’s a total ofmore than $1.2 billion in revenue that is lostto state and local governments.

A woman who specializes in analyzing e-commerce said La Jolla isn’t an anomaly, butrather the norm. People are shopping on-

Despite the empty storefrontson Girard and Prospect, NancyWarwick of Warwick’s remainspositive about La Jolla.


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line, period. But while you see the physicalstores, and plenty of people walking around,do you actually see people shopping?

In order to survive, La Jolla must evolveto meet consumer demands. It needs to

figure out its strengths because it can’tcompete on price and convenience withonline shopping.

There are some places that will surviveand thrive in this new marketing world:

specialty shops that give customers an ex-perience, food, coffee and juice bars, andplaces where people need to physically gofor waxing, eyelash extensions, jewelry re-pair, fitness programs and such.

The Village of La Jolla, “The Jewel by theSea,” has lost some of its luster. Dirty sidewalks,potholed streets, overflowing trash cans andlitter don’t go unnoticed by affluent visitorsand business men and women who comefrom all over the world to look at investmentproperties with Mike Slattery of CushmanWakefield, an industry-wide market expert,specializing in La Jolla since the mid-80s.

“It’s the first thing they notice when theycome here. La Jolla has not been given theattention that they think it deserves. They areconfused by this,” said Slattery. The problemis, in a nutshell, that La Jolla has not receivedthe funds needed to improve and beautifyitself. And La Jolla is unable to implement anyprojects in the public right-of-way (sidewalks,streets, medians) due to city liability regula-tions. But that’s about to change.

The La Jolla Community Foundation sup-ported an effort to establish a MaintenanceAssessment District (MAD) for the Village of LaJolla, which was approved by those withinthe district by mail ballot and ratified Nov. 15,2016, by the San Diego City Council.

“La Jolla will join 63 other MADs in San Diego;it’s a time-tested solution for raising addi-tional money for the communities,” ex-plained Nancy Warwick, owner of Warwick’sBookstore and a member of the steeringcommittee.

Starting in December 2017, commercial,recreational, nonprofits, multi-family and sin-gle-family residents will be assessed based onwhat each property owner would realize fromservices provided by the MAD. Residentialowners will pay about 16 percent of the totalcollected and commercial properties will pay84 percent of the total assessments.

The district has 1,347 properties with 1,158owners. The city owns six parcels and mustcontribute $37,500 annually. The MAD annualbudget is an estimated $502,000. Its bound-aries are Coast Boulevard, La Jolla Boule-vard, Pearl Street, Girard Avenue and TorreyPines Road.

The funds raised will be applied to ongoingefforts to enhance the community, includinglandscape maintenance, street and side-walk cleaning, litter and graffiti abatement,upgraded trash cans, additional trash col-lection, benches, enhanced signage, traffic-calming, public art, and tree canopies. This

increased maintenance will begin in 2018.

Some maintenance of public parks within thedistrict will be included in the MAD. EnhanceLa Jolla will work with city Parks and Recre-ation Department to determine what serv-ices should be provided in these areas.

The MAD will be administered by Enhance LaJolla, a nonprofit formed by the La JollaCommunity Foundation, with a board of di-rectors consisting of property owners andcommunity stakeholders within the district.Enhance La Jolla will be responsible forpreparing the annual draft budget, retainingcontractors, and overseeing and administer-ing the maintenance services.

It will have the ability to see projects throughfrom fundraising to completion. The city ofSan Diego will oversee Enhance La Jolla’sadministration of the MAD to ensure compli-ance with local and state statutes.

Warwick believes that there are many resi-dents who will donate money to beautifica-tion projects, now that the MAD is in place. “Iexpect Enhance La Jolla, which will manageboth the MAD assessments and spearheadcapital campaign projects, will be very suc-cessful because the residents truly treasurethe Village,” she said.

A proposed project through the MAD is “TheBelvedere Promenade,” which will imple-ment the 2004 La Jolla Community Plan of apleasurable shopping and outdoor-diningpedestrian promenade on Prospect Street.Designed by architects Alcorn & Benton, TheBelvedere plan relocates parking spacesand modifies the roadway for efficient andpedestrian-friendly vehicular travel. The newpublic Belvedere vista point will overlookEllen Browning Scripps Park and the PacificOcean beyond—a destination for touristsand residents alike.

MAD compliments La Jolla’s Business Im-provement District (BID); while the MAD fo-cuses on physical projects and ongoingmaintenance, the BID focuses on businessdevelopment and retention.

The BID was established about 30 years agoand is managed by the La Jolla Village Mer-chants Association, an all-volunteer associa-tion whose mission is to enhance villagemerchants’ opportunities to do business. SheilaFortune is the association’s executive director.

In the BID, business owners are assessed an-nually to fund activities and improvements topromote the business district. A BID is a toolfor strengthening small business communities,creating new jobs and attracting new busi-nesses through marketing and promotionalevents. BID boundaries are Torrey Pines Road,Prospect Avenue, the heart of the Villagedown to Coast Walk, La Jolla Boulevard andPearl Street.

“What’s happening now is that there are a lotof foreign investors coming in and buying upthe properties for investment and they don’thave an emotional connection to the Villageor the property,” said Fortune. “So the all-vol-untary association board is trying to reach outto them to help them develop a sense ofplace. To educate them why La Jolla is spe-cial. Why we need people to be engaged.Why they need to not just look at the bottomline. We watch the market and try to work withthe new tenants, whoever that are, to care ifthey make it.”

The association is currently doing surveys tosee what residents would like in the Village.“We are trying to find out what the residentswant, what the tourists want, and proactivelygo after that type of business that fits theirparticular space.”

According to Warwick, La Jolla’s businesscommunity, with over 1,300 businesses, hasmanaged to maintain a thriving residentialbase of support, despite being a popularand busy tourist fitness destination.

“In my opinion, we only need more children’sapparel stores and a gourmet market, nowthat Jonathan’s is gone. My dream is to havea gourmet food hall with a cheese shop,local butcher, chocolatier, bakery, and beerand wine purveyor. It would attract both res-idents and tourists, and it would add an ex-citing element to the community.”

Warwick is especially excited about a newarts district, developing on Fay Avenue. It in-cludes the transformation of Jonathan’s mar-ket to The Lot, a state-of-the art movietheater, and The Conrad—The Conrad Pre-bys Performing Arts Center which will serve asa heart of cultural, community and arts edu-cation event activities in La Jolla.

Challenges Ahead for La Jolla’s Business District By Delle Willett

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Dr. Amanda Gosman is a board-cer-tified plastic surgeon and is the chief of thePlastic Surgery Division and director of cran-iofacial surgery at Rady Children’s Hospital.She is also the director of craniofacial and pe-diatric plastic surgery at UC San Diego Med-ical School. Fueled by her personal drive toaddress the disparities in class and privilegeamong people around the world since highschool, Gosman began working with different

international medical organizations after medical school, traveling toEcuador, Guatemala and remote parts of Central and South America.With this extensive experience providing health care and education tounderserved communities around the world, she selected aspects of herexperiences that she admired most for her own international nonprofitorganization. In 2010, she founded ConnectMed International, a hu-manitarian nonprofit that provides free surgical services and supportmultidisciplinary care and educational outreach to underserved com-munities. She and her team have provided free reconstructive and cran-iofacial surgeries for the most vulnerable people in Guatemala, Mexico,Vietnam and Malawi.

Women Who Impact San Diego 20171 0 O U T S T A N D I N G P R O F E S S I O N A L S

Lisa Chappel is vice president for facilities management atMission Federal Credit Union who is shaping sustainable practicesacross San Diego’s member-owned, nonprofit cooperative. At Mis-sion Fed, she oversees all management aspects of the organization’smore than 30 retail branches and corporate office buildings. Sheworks behind the scenes to ensure Mission Fed’s facilities functionin a manner that effectively supports the organization’s objectives,current needs and future goals. Her strategic planning touches nearlyevery aspect of the credit union’s daily operations. In 2014, Chap-pell founded Mission Fed’s Green Team to provide education, sup-

port and planning of eco-friendly solutions. Her planet-first initiatives led Mission Fed toreduce total greenhouse gas emissions by274.9 metric tons in 2015 — savings equivalent tomore than 650,000 miles logged by an average passenger car. From October 2015 to Octo-ber 2016, nine branches cut peak hour energy consumption by nine percent of their total en-ergy costs. She is a member of CREW (Commercial Real Estate Women) of San Diego,founder of the Giving Club, a community-centric group that gives to Rancho Penasquitos-based organizations and residents. She also heads the San Diego chapter of the InternationalFacility Management Association.

Teresa Stivers is the chief executive of-ficer of Walden Family Services and her ex-tensive community involvement withorganizations tackling the isssues of educa-tion, health and community services and af-fordable housing positively impacts SanDiego. She overseas the organization’s five of-fices throughout Southern California, offer-ing foster care, adoptions and youth services.Under her leadership, Walden has launched aprogram to service young people staying in

foster care until age 21; established visitation centers that provide su-pervised visits for birth families and children in foster care; andlaunched programs to support pregnant women and parenting teens.Stivers also is an avid volunteer. She is a member of the San Diego Re-gional Chamber’s Education and Workforce Development Commit-tee, a member of the San Diego County Taxpayers Association and onthe executive board of Housing YOU Matters, a broad-based coalitionthat advocates for sound solutions for increasing housing supply andlowering costs of building new homes.

Shari Brasher is chief executive officer of Fresh Start Surgi-cal Gifts. While she has been a driving force behind Fresh Start asCEO for the past 13 years, prior to her current role she was an in-tegral Fresh Start volunteer, board member and donor for over 11years. With her leadership at Fresh Start, it has been able to providefree reconstructive plastic surgeries to over 8,000 disadvantaged in-fants, children and teens at a cost of over $35 million. In addition, sheis the key leader in cultivating and nurturing Fresh Start’s donorbase. She helped raise over $1 million each year to expand the num-ber of patients Fresh Start reaches. In 2014, she expanded Fresh Startto Chicago and was the leader in creating a partnership with the

American Society of Plastic Surgeons, a nonprofit arm, and the Plastic Surgery Foundationto fund the expansion project at the University of Chicago Children’s Hospital. She is a mem-ber of the board of the San Diego Sports Medicine Foundation, the Sage Creek Foundationand has received the Philanthropic Council’s award for Volunteer of the Year for her out-standing service to the San Diego community.

Ann Albert is chief financial officer of Voice of San Diego andvice president ofd Girard Capital Inc. Voice of San Diego, founded in2005 by Buzz Woolley and Neil Morgan, is San Diego’s first nonprofitnews organization producing hard-hitting investigative reporting. Shehelped with the startup, set up the accounting, operations and humanresources systems. She does all of the accounting for both Voice andGirard Capital. She also provides accounting and management servicesfor Glorietta Bay Inn in Coronado. She is also the accountant for theGirard Foundation, a private nonprofit foundation supporting K-12education in San Diego County.

Lisa Hitt is the chief financial officer of Pacific Building Group,a 33-year-old local general contracting firm. As the CFO, one of herbiggest achievements has been building systems which support ac-counting, IT, operations, risk management, safety, and insurancefunctions. She established the internal safety group to create a safework environment for the firm’s 150 employees, sub-contractors andclients who are often on-site during construction projects. She is alsopresident of the San Diego Construction Financial ManagementAssociation (CFMA). She also invests her time in the East CountyPosse, whose mission is to assist people who need help with a “hand

up, instead of a hand out.” Hitt is one of a handful of women in the male-dominated group,but this hasn’t stopped her from leaving her mark. She serves on the board of directors andchairs the appropriations committee, working with the YMCA Armed Services to start andfund Operation Hero. She is also on the board of trustees of the Institute of Certified Con-struction Industry Financial Professionals.

Karen Burges During Karen Burges’30-year tenure managing and directingNAIOP San Diego, she has helped grow thechapter from 50 to more than 750 members.Over the past six years, NAIOP San Diego hasexperienced a 30 percent growth in member-ship. She took the lead in creating the Devel-oping Leaders Mentorship program, where200 industry professionals, 35 years andyounger, receive intensive mentoring from sea-soned commercial real estate professionals

through seminars and individual access. Through NAIOP Foundationshe helped start a scholarship program for commercial real estate stu-dents at three San Diego universities. With her coordination, NAIOPhas also had significant impact upon local, state and national legislation,with the goal of promoting job growth and enhancing economic devel-opment within the commercial real estate industry. She helped NAIOPadopt the 1st Marne Special Operations Raider Battalion from CampPendleton. NAIOP provides supplies and assistance to these Marinesand their familites.

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Debra Rosen is president and chief executive of-ficer of the North San Diego Business Council. Inher eight years as president, she has built the cham-ber into a respected regional business organization,diversifying the membership and its board of direc-tors. She has aggressively advanced a competitiveagenda which includes building a strong chambermembership and advocacy, strengthening political re-lationships, forging a Think Local First initiative, andprotecting business interests on a local, state and fed-

eral level. She is credited with turning around two underperforming nonprof-its. Rosen has developed and implemented strategic plans, restored profitabilityfor member programs and won market share in competitive regions while de-livering growth for the chamber, its members and business community. Beforetaking over the chamber, she was with the Downtown Business Association ofEscondido. She holds a bachelor’s degree from San Diego State University.

Crystal Sargent is a big-thinking sales andmarketing executive who is passionate about helpingbusinesses and people grow. She recently establishedInvested Advisors Inc., a San Diego-based business-to-business management consulting firm. She has alsolaunched Invested Traveler, whose motto is “take yourteam father.” Invested Traveler believes that “compa-nies with happy, engaged teams perform better —much better and Invested Traveler takes you therewith custom-curated travel experiences for your teamthat will educate and inspire them to reach their fullest

potential.” Before launching Invested Advisors and Invested Traveler, Sargentwas a senior vice president of marketing for Torrey Pines Bank. She serves onseveral boards, including the Old Globe Theater and the Alzheimer’s Associa-tion. She earned her bachelor of arts degree in history from the University ofWisconsin-Madison and has a master’s degree in business and marketing fromthe Illinois Institute of Technology.

Renae Arabo Renae Arabo is the chief market-ing officer for RJS Law. She brings to the firm morethan 20 years of finance and accounting backgroundalong with a strong talent for marketing and public re-lations. She previously worked at Neighborhood Na-tional Bank where she assisted in community outreachand public relations. Her diverse background includesmore than 10 years as a property manager for ShamounInvestments Co., where she marketed and managed animpressive portfolio of commercial and real estate

properties throughout San Diego County. This experience led her to serve asproject manager and and chief designer on a number of large-scale residential andcommercial projects, including the remodeling of the RJS Law Building inDowntown San Diego. She is particularly passionate about promoting businessdevelopment in the East County where she has lived for more than 40 years. Sheis a prominent member of the San Diego Chaldean Community.


C O M M E R C I A L R E A L E STAT E

A glaring and dubious conflict of interest has long been ram-pant in the world of commercial real estate. This practice knownas “dual agency” describes a brokerage firm that represents bothlandlords and tenants in the same negotiation. It should be ob-vious to a first-year law student — or even someone with just apassing knowledge of law — that those two parties have oppos-ing interests.

Unfortunately for most tenants, most commercial real estatebrokerages primarily represent landlords. That makes buyers sec-ond-class citizens in negotiations. Adding to the frustration fortenants are international organizations such as the BuildingOwners and Managers Association (BOMA), which have broadreach and help stack the deck against tenants.

What recourse do representatives of tenants/buyers have? Forstarters, there’s a new nonprofit association ready to fight for theunderdogs in this equation. The Association for CommercialTenants (ACT) was specifically created to provide educationalsupport, legislative guidance and industry unification. ACTstands in opposition to the inherent conflict of interest created bydual-agency brokerage, and is striving to even the playing field.

Many would say it’s about time. Here, then, is a look at the his-tory of this unfair relationship, the unveiling of a ray of hope forthose on the wrong end of landlord-tenant negotiations, and arundown on the weapons tenants now have to fight back.

The Opening ACTLandlords own buildings and tenants rent space in those build-

ings to operate their businesses. Tenants represent all kinds ofbusinesses — law firms, supply companies, bio-techs, pharma-ceutical start-ups and so on. Some companies own thebuildings they occupy; some rent to save upfront cap-ital that can be used to later grow the business.

Commercial brokerage was created more than acentury ago, and it began as a way to help landlordssell and lease properties. It was only later that tenantrepresentation became part of the industry.

BOMA came along and helped create a huge sup-port system for landlords and their professionals. Thisunion-like organization aggregated the voice of land-lords, and gave a boost to a group that already had anunfair advantage.

Rental dollars paid for the industry to flourish.Holding all the cards, landlords were then able to ma-nipulate the system to unfair advantage.

For example, over the past two decades there’s the all too com-mon example of buildings magically growing in size. How is thatpossible? Building owners have found ways to get architects tobe creative in their square-foot measuring guidelines. A space thatwas 100,000 square feet 20 years ago may suddenly be listed at

110,000 square feet today. Artificially growing the space meansthat the price can be bumped up. The building hasn’t gotten anybigger — but the interior spaces that are added to the measure-ment equation somehow grow, to the delight of owners. Theseare the kinds of practices that can be installed when a group isbacked by money and clout.

Tenants, on the other hand, have long treated office space as a“need-to-have” expense. For tenants, leasing space is not their ex-pertise. Therefore, they continually get taken advantage of —legally, economically and flexibility-wise.

Buyers have long had no bargaining power, no voice, and nosuper hero standing up for them (except for a fewtenant-representation companies that exclusivelywork for tenants in lease and purchase transactions).

Now one of the leading providers of exclusive ten-ant representation has created an organization to bethe counterbalance to BOMA—a group whosemembers today represent 10.5 billion square feet ofproperty in the United States. The goal of ACT isto bring tenants the bargaining power, voice and pro-tection that they deserve.

Why ACT Now?After 25 years of providing award-winning pro-

fessional service in commercial real estate brokerageand serving as a pioneer in the industry that exclu-

sively represents tenants, my wife (COO of Hughes Marino)Shay Hughes and I founded ACT. Our mission is to expose land-lords and other organizations that take advantage of commercialtenants, and shine a light into the dark corners of commercial realestate.

New nonprofit fights back against the unethical practice ofdual-agency brokerage

Commercial real estate tenants need and deserve an organiza-tion that is empowered to stand up for their rights.

By Jason Hughes

Shay Hughes


C O M M E R C I A L R E A L E STAT E

Shay and I own and operate commercial real estate firm HughesMarino — a nationally recognized, 100-percent-family-ownedbusiness headquartered in San Diego. With offices up and downthe West Coast, Hughes Marino has partners that span across thecountry and around the globe.

Commercial real estate tenants need and deserve an organiza-tion that is empowered to stand up for their rights. BOMA wieldstremendous influence, monitors and lobbies legislative issues andpublishes codes and standards on building measurements andother industry issues. ACT gives tenants a seat at the table and avoice to demand truth, justice and fairness.

Prior to founding ACT, I have personally taken on an active rolein changing the industry. In 2014, I was responsible for gettingCalifornia’s Legislature and Gov. Jerry Brown to sign Senate Bill1171 into law. Dubbed the Dual Agency Disclosure Law, it wentinto effect in January 2015. It was a small step toward overalltransparency in commercial real estate brokerage disclosure, and alarge victory for tenants.

Following that passage, in December 2016, California’s StateSupreme Court upheld an appellate court ruling (Horiike v. Cold-well Banker) stating that dual agents have an inherent conflict ofinterest — and also encouraged Sacramento to modify the lawson dual agency in the state.

Our goal now is to make dual agency illegal in California —and across the United States.

Benefits of ACTionWho can join ACT? Any company, or representative of a busi-

ness or firm, that engages in the act of renting commercial officespace.

One of ACTS’s major functions is to create awareness and pro-pose legislation regarding the conflict of interest within dual-rep-resentation agencies. By becoming a member of ACT, companiesare gaining strength in numbers. How? By uniting together withother tenants who negotiate with powerful landlords.

ACT is a nonprofit, and not a union, but members realize eco-nomic benefits in the same way any interest group with a sharedinterest bands together and stands united for a common cause.

Members have access to educational content, are frequently up-dated on codes, standards and practices, and can enter into trans-actions with the peace of mind knowing they are supported byunified clout.

Another benefit: ACT is revolutionizing the landlord-tenantrelationship by creating a private registry of landlords that includesratings by member companies. The nonprofit’s members can ratelandlords on a scale that will note if certain entities are blacklistedfor unacceptable business practices.

The ACT team is available by telephone or email, and deliversmonthly bulletins to members, annual white papers on industrystandards and updates on legislative and legal matters.

Examples of common lease discrepancies that ACT can pro-vide information on include: base year expenses; operating expensereconciliation; capital expenses versus recoverable expenses; meas-urement of space; landlord relocation provisions; damage and de-

struction provisions; subleasing and assignment provisions; optionto renew, contract, expand provisions; and parking expenses anddouble dipping with building expenses.

Coming soon, there are plans in the works for an ACT annualmeeting, where members can participate in educational sessionswith commercial real estate experts, as well as network with like-minded peers.

For more information about ACT, or to find out about how tojoin, visit actrealestate.org, or email [email protected].

Jason Hughes is president, CEO, and owner of

Hughes Marino, an award-winning California com-

mercial real estate company with offices in San

Diego, Orange County, Los Angeles, San Francisco

and Silicon Valley. This article originally appeared in

Attorney Journal (www.attorneyjournalsd.com)


EC O N O M Y

California Squashes Its YoungThe state’s suffocating economic policies are driving out a new generation

In this era of anti-Trump resistance, many progressives see Cali-fornia as a model of enlightenment. The Golden State’s post-2010recovery has won plaudits in the progressive press from the NewYork Times’s Paul Krugman, among others. Yet if one looks at theeffects of the state’s policies on key Democratic constituencies —millennials, minorities, and the poor — the picture is dismal.

A recent United Way study found that close to one-third of stateresidents can barely pay their bills, largely due to housing costs.When adjusted for these costs, California leads all states — evenhistorically poor Mississippi — in the percentage of its people liv-ing in poverty.

California is home to 77 of the country’s 297 most “economicallychallenged” cities, based on poverty and unemployment levels. Thepopulation of these cities totals more than 12 million. In his newbook on the nation’s urban crisis, author Richard Florida ranks threeCalifornia metropolitan areas — Los Angeles, San Francisco, andSan Diego— among the five most unequal in the nation. Califor-nia, with housing prices 230 percent above the national average, ishome to many of the nation’s most unaffordable urban areas, in-cluding not only the predictably expensive large metros but alsosmaller cities such as Santa Cruz, Santa Barbara, and San LuisObispo. Unsurprisingly, the state’s middle class is disappearing thefastest of any state.

California’s young population is particularly challenged. As wespell out in our new report from Chapman University and the Cal-ifornia Association of Realtors, California has the third-lowest per-centage of people aged 25 to 34 who own their own homes — onlyNew York and Hawaii’s are lower. In San Francisco, Los Angeles,and San Diego, the 25-to-34 homeownership rates range from 19.6percent to 22.6 percent — 40 percent or more below the nationalaverage.

No big surprise, then, that California’s millennials are more likely

to stay at home with Mom and Dad into their 30s. Approximately47 percent of Americans aged 18 to 34 lived with parents or otherrelatives in 2015, according to the American Community Survey— but in California, the figure is 54 percent. California’s youngergeneration, particularly in the cities, seems increasingly destined tolive as renters.

The biggest losers from California’s housing crisis are, ironically,the very people whom progressives claim to care about most: thepoor and minorities, who also constitute most millennials. Hispan-ics, now approaching a majority of the state’s population, account for43 percent of the 25-to-34 cohort. Rates of homeownership forAfrican-American and Hispanic Californians have dropped at fourtimes the rate of Asians and non-Hispanic whites in the last 10years, while minority homeownership in the Golden State now lagsmost of the country, notably Texas and the southeast.

Much of this can be traced to California’s long-standing biasagainst suburban development. Reducing greenhouse-gas emissionsremains an obsession. But unless the rest of the country (or theworld) adopts California’s strict emissions rules, the state’s regula-tions are likely to have little or no impact on climate change. Re-cently passed legislation will make things worse by imposing evenmore stringent regulations on greenhouse gases, mandating a 40percent cut from 1990 levels by 2030. This represents the ratchet-ing up of a regulatory regime that will slow California’s already-tor-pid rate of issuing building permits, which is well below the nationalaverage.

California’s housing policies pose a profound long-term threat tothe state’s social stability and economic viability. The state has seena net loss of about 1.7 million domestic migrants since 2000. Afterslowing during the Great Recession and its aftermath, out-migra-tion is again growing, even in the booming Bay Area. Some 29,000more people left the Bay Area than arrived in 2016. The San Fran-

By Joel Kotkin and Wendell Cox

Commercial real estate tenants need and deserve an organization that is empowered to stand up for their rights.

cisco metropolitan area saw net migration plunge from plus-15,000in 2013 to minus-12,000 three years later.

Contrary to some reports, the people leaving California are notpredominantly poor and uneducated. IRS data show that California’soutmigration between 2013 and 2014 was concentrated among mid-dle-aged people with higher average incomes than households thatstayed in California or moved there. This trend contrasts dramaticallywith Texas, arguably the state’s strongest economic competitor.

Here again, new policies will only make things worse. The BayArea’s 2040 regional plan calls for concentrating 75 percent of newhousing development on barely 5 percent of the region’s developedland mass. One alternative planassumes that 78 percent of new hous-ing in the Bay Area would be multi-family and 22 percent single-family (detached and attached). The regional Air Quality Agencyhas drawn up intrusive plans, seeking to levy tolls on all freeways,ban gas stoves, and urge less meat consumption.

Young people overwhelmingly prefer single-family houses, whichrepresent 80 percent of home purchases nationwide for people under35. If millennials continue their current rate of savings, notes onestudy, they would need 28 years to qualify for a median-priced housein San Francisco—but only five years in Charlotte and just three inAtlanta. This may be one reason, notes a recent ULI report, why 74percent of Bay Area millennials are considering moving out in thenext five years.

Regional planners and commercial chambers should indeed look

to California as a model — of exactly what not to do. The state’slarge metro areas are no longer hot growth spots for millennials, whoare flocking to suburbs and exurbs elsewhere. Since 2010, the biggestgains in millennial residents have been in low-density, comparativelyaffordable cities such as Orlando, Austin, and Nashville. Ultimately,the battle for California’s future — and much of Blue America’s —will turn on how these regions meet the challenge of providing hous-ing and opportunities to a new generation of workers and youngfamilies. A California that works only for the wealthy and well-es-tablished is not sustainable.

America’s “youth culture” was invented, more or less, in Californiain the 1960s, from the surfing spots of L.A. and Orange County tothe countercultural hotbeds of the Bay Area. But today, California isturning on its young, with policies that ensure that most millennialswill never fully “launch,” leaving many destined either to move else-where or become wards of an ever-expanding welfare state. TheGolden State can still create an environment for growth and familyformation — but only if it reclaims its historical role as the nation’sbeacon of opportunity and youthful enthusiasm.

Joel Kotkin is the presidential fellow in urban futures at Chapman Uni-

versity and executive director of the Center for Opportunity Urbanism.

Wendell Cox is the principal of Demographia, a public-policy consul-

tancy, and a senior fellow at the Center for Opportunity Urbanism,

based in Houston.


EC O N O M Y


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SECT ION T I T L E


H I S TORY

Only his family and a few close friendsare aware of the artistic talents of TomHom, a legend in the Chinese Americancommunity and in the halls of City Halland the state Legislature.

The San Diego Chinese HistoricalMuseum is determined to let others viewHom’s artistic achievements through anew exhibit: “Unseen Portrait: The Art ofTom Hom.” It is being shown throughAug. 20 at the Downtown San Diego mu-seum, 328 J St.

Now at 90 years old, for the first timeever, Tom Hom is going public with his art.

The exhibition features over 50 workson display that capture over 70 years ofthe artist’s work, including sketches, car-toons, watercolors, and oil paintings. Fromhis early pencil sketches created whenHom was receiving treatment for tuber-culosis at a sanatorium, to his recent wa-tercolor works thatexplore themes ofidentity, “UnseenPortrait” is a rare lookat the artistic journeyof this ChineseAmerican commu-nity leader.

As the son of Chinese immigrants,Hom grew up in a San Diego where racialdiscrimination kept minorities from get-ting certain jobs and living in certainneighborhoods. Hom was born in 1927on the site where the museum now standsin the historic Chinatown, San Diego.

Until his first day of school, Hom didnot speak a word of English. Despite theodds, he and his 11 siblings went after the

American dream and built a better life forthemselves. In 1963, Hom became thefirst minority elected to the San DiegoCity Council and the second Asianelected to the state Legislature.

Eventually, he started his own businessand was in the position to give back to thecommunity — to preserve the rich her-itage, including the San Diego neighbor-

hoods where Asianswere once forced tolive. This heritageand journey is alsocaptured in his origi-nal artworks thatdocument Hom’shopes, dreams, and

achievements, complimenting his recentmemoir, “Rabbit on a Bumpy Road.”

“’Unseen Portrait: The Art of TomHom’ is close to our hearts because ofTom Hom’s extraordinary legacy in SanDiego’s historic Chinatown and theGaslamp Quarter,” said Tiffany Wai-YingBeres, executive director of the San DiegoChinese Historical Museum. “Hom hasplayed a vital role in making San Diegothe great city as we know it today. We arethrilled to reveal the unseen portrait ofTom Hom as an artist.”

Exhibit viewers will see a portrait ofTom Hom’s experience in San Diegothrough:

• An introduction about Tom Hom’slife, career and artwork.

• 1950s cartoons and sketches during histime at the sanitorium with tuberculosis.

• Watercolor and oil paintings of theAsian American experience in San Diego.

Tom Hom and the Chinese American ExperienceMuseum exhibit reveals artistry of one of San Diego’s most talented political leaders

Living the American Dream

Tom Hom, son of two Chinese im-migrants, was born in San Diego’sChinatown in the 1920s when muchof American society was segre-gated, socially and economically.

He entered school in San Diego,like other children who lived in Chi-natown, speaking only Chinese. Ashe grew older, he faced limited jobopportunities and discrimination inhousing.

He never lost faith in the Americandream and went on to achieve suc-cess for himself, his family, and thegreater good of a diverse America,breaking age-old barriers of preju-dice and segregation.In 1963, Hom made San Diego his-tory by becoming the first minor-ity ever elected to the San DiegoCity Council. Later, this ChineseAmerican won a seat in the Cali-fornia Assembly.

Among Hom’s many contributions,he helped transform San Diego’sskid row into the vibrant GaslampQuarter and led efforts to establishthe San Diego Chinese HistoricalMuseum.

In 2014, Tom Hom published hisautobiography, “Rabbit on aBumpy Road,” that told his story ofbeing an Asian American whoachieved the American Dream withsome adverse times and tri-umphant times along the way. Today, Tom Hom is a respectedelder who has contributed to thesuccess and growth of San Diegoand has inspired a new generationof Americans to greater achieve-ment in economic growth and civicresponsibilities. His journey andwords of wisdom offer encourage-ment to all who believe in the fu-ture of America.

Living the American DreamSan Diego Chinese Historical MuseumDr. Sun Yat-Sen Memorial Extension Building328 J St., San DiegoExhibit runs through Aug. 20, 2017General Admission: $5

Tom Hom and cover of his autobiography.

Family Outing, watercolor painting of whatHom observed on one of his trips to China.



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