PALOMAR COMMONS TRANSFORMS CORNER Lowe's retail center opens on Palomar Airport Road.
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IT'S TIME TO CELEBRATE
Start planning your holiday party to reward loyal employees.
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BUSINESS WWW.CARLSBAD.ORG
JOURNAL
VOL. 30, NO. 9
AN AWARD-WINNING, MONTHLY PUBLICATION OF THE CARLSBAD CHAMBER OF COMMERCE
SEPTEMBER 2013
Chamber advocates for better sign ordinance Revision allows for more business-friendly signage Carlsbad Chamber officials are applauding the Carlsbad City Council for revising the city’s sign ordinance to include several provisions that will help businesses in the city maintain a competitive edge and better advertise their businesses. At its Aug. 27 meeting, the Council adopted
Google makes Carlsbad one of its 50 eCities City named California’s ‘digital capital’ Google has named the City of Carlsbad as the “digital capital” of California, singling it out for having the “strongest online business community” in the state. A Google representative presented Carlsbad Mayor Matt Hall with an award, designating the city as one of the 50 inaugural eCities of America at the State of the City Luncheon presented by the Carlsbad Chamber of Commerce on Friday, Aug. 23 at the Sheraton Carlsbad Resort & Spa, 5480 Grand Pacific Drive. The Google eCity Awards honor “the strongest online business community in each state.” “Our eCity Awards recognize the new digital capitals of America,” said Scott Levitan, Google’s director of small business engagement. “We’re proud to recognize this growing entrepreneurial spirit — and the role that it plays in both creating jobs and sustaining local economies. With 97 percent of Internet users looking for products and services online, it’s clear that success is about being connected.” “We are honored to be recognized as an eCity by Google,” said City of Carlsbad Mayor Matt Hall. “It just goes to show that medium sized cities like Carlsbad can lead the way in innovation and technology just like
the revision, including Chamber-supported recommendations that dealt with digital signs and wall signs on large businesses. Under the adopted ordinance, digital signs, or “electronic message boards” — previously prohibited in Carlsbad — could be allowed at regional commercial centers such as Westfield Carlsbad and Car Country Carlsbad that are next to a freeway (either Interstate Highway 5 or State Route 78). The Council required that digital signs be addressed as a part of a Specific
MORE THAN 500 ATTEND SOLD-OUT STATE OF THE CITY LUNCHEON “Carlsbad is a world-class city,” Mayor Matt Hall proclaimed at the State of the City Luncheon, presented by the Carlsbad Chamber of Commerce on Friday, Aug. 23 at the Sheraton Carlsbad Resort & Spa. Hall, in his third year presiding over the annual event, offered more than enough proof of that as he spoke to the sold-out crowd of 500, which featured business and community leaders. During his speech, Hall presented figures that demonstrate how Carlsbad has
managed to grow, even through the tough times of recent years. For example: Property taxes went from $48 million in ‘08-’09 to $52 million today. The price of homes in Carlsbad has gone from $515,000 18 months ago to $630,000 today. Carlsbad brought in $22 million in sales taxes five years ago, and today it’s bringing in $29 million.
Mayor Matt Hall giving his State of the City address before business leaders on Aug. 23.
SEE STATE OF THE CITY Page 6
Photos provided by Google | Melissa McClure
BUSINESS SPOTLIGHT
Books provide tips on becoming a selfless leader Management approach ‘turns organizational chart upside down’ BY ROBIN SWIFT Servant Leadership Institute
5934 Priestly Drive Carlsbad, CA 92008
SEE SIGNS Page 5
CELEBRATING CARLSBAD
SEE GOOGLE Page 3 PRESORT STD U.S. Postage PAID Permit #67 Carlsbad, CA
Plan, establishing design standards that would require approval of a Conditional Use Permit by the City Council for the actual development of a digital sign. A Specific Plan Amendment to allow a digital sign at Car Country would have to be approved by both the City and the state Coastal Commission because Car Country is in a Coastal Zone. The Council also adopted a provision recommended by the Chamber that would allow large
North County entrepreneur Art Barter has a unique approach to his business: servant leadership. “It requires leaders to think more about others than themselves,” he explains. “It turns the organizational chart upside down. I now have a whole organization I can serve. My employees don’t report to me; I report to them.” Barter is owner and chairman of Datron World Communications, Inc. in Vista and CEO and president of Servant Leadership Institute (SLI) in Carlsbad. Founded in 2009, SLI is a leadership training resource center created by Barter to serve and help grow leaders determined to
make a positive difference in their organization and community. SLI helps self-centered leaders become more selfless leaders. As a result of often being asked how to implement servant leadership, Barter and a small group of experienced leaders developed and wrote the "Boots on the Ground" implementation guidebooks to provide proven and practical methods for servant leadership development. For the past 10 years, these servant leaders have been involved in the transformation of Datron from a traditional power model to a servant-led model. They have lived the experience firsthand, beginning with Datron’s inception of servant leadership in 2004, progressing through years of implementation, and continuing the ongoing work of transformation today. The just-released “Boots on the Ground” guidebooks are designed to educate and equip individuals and organizations for their servant leadership journey. Each booklet draws on reallife examples from Datron’s servant leadership
SEE BOOKS Page 7
2 | WWW.CARLSBAD.ORG
Tackling time management One of my weaknesses is time management. I always need assistance in getting all my tasks done. I have lots of help, thank goodness, or this column would be late. How you manage your time is money. Time spent in the right way helps pay for the day to day activities that make you successful. I want to share some thoughts on time and its uses as written in John Maxwell’s book “Success One Day At A Time.” The Top 10 High Value Uses of Your Time: • Things that advance your overall life purpose. • Things that you have always wanted to do. • Things that others say can’t be done. • Things that develop other people’s ability to achieve and lead. • Things that help you grow to your maximum potential. • Things that multiply — rather than merely add — value to yourself and others. • Things that harness your creativity. • Things you can delegate to others. • Things that promote teamwork and synergy. • Things that are now or never opportunities. Always remember what Paul Meyer said: “Time is usually wasted in the same way every day.”
This past month I was fortunate enough to be at the State of the City Luncheon. I gave a version of this speech — our program was so jam-packed I had to condense some of it — to those in attendance as a State of the Chamber, so I’d like to present the whole thing here. Good afternoon ladies and gentlemen. Welcome to the Carlsbad Chamber of Commerce’s state of the City Luncheon. Thank you for joining us. Today, Mayor Matt Hall will be giving us the State of the City. In that spirit, I think it’s a perfect time to give you a mini-state of the Chamber, and what better way than sharing with you some of the great things that our members are doing. First off, the Chamber itself is 90 years old this year. That’s quite an accomplishment. The founders of the Chamber were the first city leaders. We know they came together to put up street lights, trim trees and eventually, pave the way for the incorporation of the City. This organization has always had the best interest of Carlsbad in mind, and we’re lucky to continue that tradition. I’m a big believer in accentuating the positive – and it’s easy to do that here in Carlsbad, because we have it so good. The following are just a few examples of the good things that have taken place so far this year. At our Annual Business Awards, we honored some of the Chamber’s most successful businesses. All of our nominees were previous winners in their category. The winners were • Businessperson of the Decade – Greg Lucier, chairman and chief executive officer of Life Technologies Corp. • Entrepreneur of the Decade – Christine Davis, Coolest Shoes in California. • Small Business of the Decade (1-15 employees) – Isaac's Catering. • Medium Business of the Decade (16-99 employees) – Marrs Maddocks & Associates Insurance Services and the Museum of Making Music (tie). • Large Business of the Decade (100 or more employees) LEGOLAND California Resort. In other areas, our members are leaders in their industries. For example, our hospitals are top-notch. In 2013, Scripps Health was listed as number 43 in Fortune magazine’s
CHAIRMAN’S KUDOS
Chairman of the Board CARLSBAD CHAMBER OF COMMERCE
list of the “100 Best Companies to Work For” in the United States. Also this year, Tri-City Medical Center has been named one of “100 Great Hospitals in America” by the editors of Becker’s Hospital Review. Our members are also leaders in sustainability. Life Technologies Corp. was 33rd among the“Global 100 Most Sustainable Corporations.” Life Technologies rated highly in resource management - reducing its energy use, water consumption, waste generation and CO2 emissions as a percentage of revenue. SDG&E, was recently honored with the Supply Chain Leadership Award by the U.S. Environmental Protection Agencys Center for Corporate Climate Leadership for its push for sustainability. And, as we all know, we have some of the greatest hotels, including the venue of this luncheon, the
Sheraton Carlsbad Resort and Spa. Park Hyatt Aviara Resort, Golf Club & Spa, for example, was one of three San Diego-based resorts that earned a Five-Diamond rating from the AAA. The local hotel was among only 17 in Southern California that received the top ranking, which the Auto Club said is only earned by .3 percent of hotels and restaurants in the United States. And just down the road from here, we have the city’s most recent addition, the LEGOLAND Hotel – the first in North America. It’s a great addition to our worldrecognized resorts, and the opening was truly a cause for celebration for all of Carlsbad. Speaking of big projects, this year also marks the start of Westfield Carlsbad's renovation of our first large mall and we had the groundbreaking of the Poseidon Water project. With these few examples, it’s easy to see why Carlsbad is one of the finest cities in the nation. Since this is my last year as Chairman, I’d like to say that it has been and continues to be an honor to lead our Board of Directors in what is clearly one of the finest organizations of its kind. Thank you and let’s keep the chamber moving toward the next 90 years!
John Osborne Gina McBride John Lechleiter Carmen Rene Michael Howes, AICP Peter MacLaggan
Vice Chair of Business & Community Development Deb Beddoe
Storrow Law, APC Vice Chair of Strategic Planning Lou Storrow
DIRECTORS Katz & Associates Wells Fargo RAM Enterprises International Fish Window Cleaning Solatube Global Marketing, Inc. NRG West Colliers International Schubach Aviation Law Offices of Stephen M. L’Heureux Edward Jones Lexus Carlsbad La Costa Resort and Spa TaylorMade Golf Company SD Trophy LEGOLAND California Sylvan Learning Center of Encinitas Waste Management Westfield Strategic Results Group Torrey Pines Bank Carlsbad Sterling/Stone Realtors Grand Pacific Resorts, Inc. Scripps Health SDG&E Tri-City Medical Center
Joseph Charest Neil Crapo Mimi Gaffey Lupe Hairston John Hanley Ahmed Haque Tucker Hohenstein Dan Hulen Stephen “Hap” L’Heureux Matt Leonard Gene Manganiello Paul McCormick Trisa Mills Niels Norby Colin Ross Chris Ross Ken Ryan Lara Saab Don Sando Don Schempp Lee Sterling Tim Stripe Michael Uzitas Jim Valentine Francisco Valle
ADVISORY COUNCIL Lola’s 7-Up Mexican Market City of Carlsbad CUSD MiraCosta College NCTD Visit Carlsbad Camp Pendleton
Information Specialist Business Services Manager Vice President, Corporate & Member Relations Director of Communications Military Mentoring Initiative Manager Business Development Manager Director of Sales & Marketing Marketing Specialist Art Director Member Services Manager
Ofie Escobedo John Coates Suzette Lovely Francisco Rodriguez Ryan Ross Sam Ross Sandy Wilson
Lynn Delanzo Bonnie Hoffman Bev Jorgensen José A. López Madonna May Kristina McMahon Julie Miramontes Scott Peltier Edgar Rodriguez Kathy Steffen
ASSOCIATES Journal Printing Advanced Web Offset
MISSION STATEMENT “The Carlsbad Chamber of Commerce promotes business through member services, educational programs, cooperative partnerships and legislative advocacy that balances economic prosperity with the quality of life.”
CARLSBAD BUSINESS JOURNAL 5934 Priestly Drive • Carlsbad, CA 92008 Ph. (760) 931-8400 • Fx. (760) 931-9153 chamber@carlsbad.org www.carlsbad.org
Chairman of the Chamber Board Carlton Lund presents the State of the Chamber at the State of the City Luncheon.
Cpl. Eric Wilcox, left, with Steve Rubino, a system specialist at Scripps Mercy, as highlighted in a news story by KGTV Channel 10. biomedicine and what the opportunities and job market looks like, Eric Wilcox walked out of Scripps Mercy Hospital with a clear direction. After spending eight days at Scripps Mercy, shadowing, observing and doing supervised work with System Specialist Steve
Carlton Lund
STAFF
BOOTS IN BUSINESS PROFILE We’ve all experienced an unclear future at least once in our lifetime. The stress of not knowing exactly what to do or where to go can be daunting. There are a lot of unknowns when you can’t gauge what the job market is like and if the career in mind is a good fit in the long run. This is the beauty of the Boots in Business program, and no one better embodied the goals and mission of the Military Mentoring Initiative “Boots in Business” program better than Cpl. Eric Wilcox while at Scripps Mercy Hospital. Eric Wilcox enlisted into the United States Marine Corps as soon as he graduated high school from Chrystal Lake, Ill. After four years in the service, Wilcox envisioned a medical equipment technician career by pursuing a degree in Biomedical Science, and work at a hospital. With his goals to see what was available for a degree in
OFFICERS The Lund Team Chairman of the Board AT&T Chair Elect McBride Financial Advisory Immediate Past Chairwoman AKT, LLP Treasurer Life Technologies Corp. Vice Chair of Member Services Howes, Weiler and Associates Vice Chair of Public Policy Poseidon Resources Corp. Vice Chair of Economic Development YourOpsManager
President & CEO Ted Owen Executive Vice President & COO Toni Padron
Photo provided by Garrett Lund
President & CEO CARLSBAD CHAMBER OF COMMERCE
The State of the Chamber CARLTON LUND
TED OWEN
WORDS OF WISDOM
Rubino, Eric Wilcox received helpful resume critiques and tips from the human resources department on how to succeed in the area of his choice. This is advice he wouldn’t have received without the Boots in Business program. “I had an absolutely great experience at Scripps Mercy. Everyone
was incredibly helpful and supportive. The department I shadowed was very insightful into what I would be doing. They helped me with my career goals,” Wilcox said. As a result of going through the program, Wilcox has changed his plans. He could have wasted his valuable GI Bill used to pay for tuition on the wrong degree for the career he had in mind. “I changed my primary school of choice to more match up with the national association that primarily deals with my career choice,” said Wilcox. “I want to get a B.S. in biomedical engineering technician at Southern Illinois University, and from there, either work at a manufacturer of medical instruments or work at a hospital.” I truly appreciate the opportunity I got at Scripps Mercy,” Wilcox added. “Everyone was supportive and helped me further myself professionally.” — By Scott Peltier
Published monthly by the Carlsbad Chamber of Commerce. Subscription price is deducted from dues of Chamber members.
INDEX MEMBER DIGEST.........................9-12 EDUCATION NEWS.......................14 CITY UPDATE................................16 VILLAGE BEAT..............................17 REAL ESTATE................................18-19 ADVERTISING SPOTLIGHT: HOLIDAY PARTIES........................15 MEMBER MARKETPLACE..............17
CARLSBAD BUSINESS JOURNAL SEPTEMBER 2013 | 3
customers as well as begin serving new customers in the North County market,” said Turner. Jersey Mike’s Subs is also opening one of its locations at Palomar Commons. The eatery has been in business since 1956, offering “authentic back East submarine sandwiches” at its more than 600 locations. Franchisee Joe Weir, who operates the Jersey Mike’s Subs in Encinitas, is opening the one at Palomar Commons in early October, along with another Carlsbad-based location at 2604 El Camino Real. Weir said Carlsbad has a reputation of being a good place to do business, and he’s excited to be in that location. Weir said that compared with the Encinitas store — which has been very successful — that part of Carlsbad is under-serviced when it comes to restaurants. “We’re excited to be in the Palomar Commons,” Weir said. “We think it’s going to be a great center ... it’s right in the commercial heart of Carlsbad.” Another Palomar Commons tenant, California Bank & Trust (CB&T), opened its doors on Aug. 5, relocating an office it used to
have less than a mile away on Palomar Airport Road. The new branch, at 2501 Palomar Airport Road, is larger, allowing the bank to house its North County Corporate Banking Group. The new office holds 14 employees, half of them working at the bank and the other seven working full time serving the area’s business community in the corporate banking group. “The new branch has all of the bells and whistles that you need in a branch office,” said Kerry Ross, who is CB&T’s senior vice president of corporate banking for North County. Features of the new bank include an enclosed merchant window and a fully lockable night depository that’s well-lit. Ross said CB&T is a full-service bank that is not as big as some of the national branches, “but we can get things done.” Palomar Commons was developed by Sudberry Properties. It’s located on 16 acres of land and is expected to generate more than $450,000 in tax revenue for the City of Carlsbad.
Davis White, Google's public affairs manager for Southern Califonia, presents the 2013 eCity Award to Carlsbad Mayor Matt Hall.
“W
e are honored to be recognized as an eCity by Google. It just goes to show that medium sized cities like Carlsbad can lead the way in innovation and technology just like more well known award recipients like New York, Atlanta and Austin.
“
Palomar Commons, Carlsbad’s new shopping center at the corner of El Camino Real and Palomar Airport Road, took shape quickly during the summer, its progress astonishing passing motorists by the day as the site that once held the Olympic Resort gave way to the new retail center. Now, the businesses are starting to move in, and several grand openings will be held this month, including the following three businesses, who recently joined the Carlsbad Chamber of Commerce. Lowe’s, the anchor tenant, will open its doors to the public on Friday, Sept. 13. This is the eighth Lowe’s store in San Diego County. Grand opening festivities will take place a week later, on Saturday, Sept. 21. Natalie Turner, spokeswoman for Lowe’s said a store of that size — 103,000 square feet of retail space with an adjacent garden center — provides an average of 125 jobs. The store will stock 40,000 different items to help customers build, improve and beautify their homes. “The Carlsbad store will enable Lowe’s to continue serving our
Photos provided by Google | Melissa McClure
Palomar Commons ready for its debut
— City of Carlsbad Mayor Matt Hall
GOOGLE ›Continued from Page 1
Palomar Commons at the intersection of Palomar Airport Road and El Camino Real, is starting to open. Among the tenants are California Trust & Bank, Jersey Mike's Subs and Lowe's.
more well known award recipients like New York, Atlanta and Austin. We have created a climate in Carlsbad that embraces technology, creates jobs and helps foster a strong economy.” Google worked with an independent research firm, IPSOS, to analyze the online strength of local small businesses in cities in all 50 states and determine the leading cities in the digital economy. To determine the winners, IPSOS looked at a variety of factors, including the likelihood of small businesses to have a website,
their use of a blog, promotion on a social network, selling goods directly from their webpages and whether they had a mobilefriendly website. The winning cities exhibited strong engagement and potential for growth within the digital economy. “This award is testament to the entrepreneurial spirit of our small and mid-sized businesses,” said Ted Owen, president and CEO of the Carlsbad Chamber of Commerce. “Here at the Chamber we know first-hand that our members are among the first to embrace new technologies, but this award is a very nice surprise, considering the vastness of our state and its reputation as a leader in technology.”
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The Affordable Care Act (ACA) in California, Covered California, is upon us with a “go live” date of Oct. 1, and an effective date for coverage of Jan. 1, 2014. Even though the employer mandate was pushed back for one year (Jan. 1, 2015), employers must make a long-term decision now about their workforce. This is a major challenge considering the ACA’s 2,500 pages of cumbersome and contested legislation and confusion over the implementation process for businesses and individuals. I anticipate that many of my peers in healthcare would agree, though perhaps not publicly, that the most positive thing one can say about ACA — commonly known as “Obamacare” — at this time is that the process has begun. The overall conversation about the ACA, though, is filled with trepidation and even dread. Sen. Max Baucus (D-MT), one of the key architects of the law, recently referred to ACA as follows: “I see a huge train wreck coming down.” While this statement was in reference to the questioning of U.S. Health and Human Services Secretary Kathleen Sebelius on her proposal to raise money from corporations for the promotion of Obamacare, it nevertheless represents the view of many. While I recognize the popularity of the ACA’s provisions, especially those that were implemented early on, such as the ban on disqualification for pre-existing conditions and the opportunity for dependents under age 26 to continue on their parents’ plans, the devil is in the details. And with ACA, there are lots of details. Recently, the fast food giant White Castle announced that it will be focusing on hiring only parttime employees for the foreseeable
LARRY B. ANDERSON
What employers need to know about implementing the Affordable Care Act STAY INFORMED
CEO TRI-CITY MEDICAL CENTER
future. Many other employers, especially in the temporary hiring and food service industries, are following suit. The reason for this is simple. It is a method to avoid the penalty known as the employer mandate, which kicks in for employees hired at 30 hours per week or 120 hours per month. This penalty is heaviest at the low-hourly-rate levels, at or just above minimum wage. It is estimated that the cost of the employer mandate is approximately $1.30 per hour. For a skilled worker, perhaps, that amount can be absorbed, but at minimum wage, no such opportunity exists. In addition, employers will soon become increasingly aware of misinformation about the financial benefits of the exchange — sold
as the method of allowing everyone to participate in savings generated by having a large pool of insured individuals. In a recent article in Forbes Magazine, “Rate Shock in California,” Peter Lee, executive director of Covered California was quoted as saying that, “rates ranged from 2 percent above to 29 percent below the 2013 average premium for small employer plans.” The truth is that under Obamacare, only people under the age of 30 can participate in the slightly cheaper catastrophic plan. So, if you live in this state and you’re 40 years old, your cheapest option is the Bronze Plan under Covered California at $261 a month vs. $121 a month on eHealthInsurance, or an increase of 116 percent. As the ACA becomes a reality, its impact on employers and individuals will be significant, including increased insurance premiums, loss of coverage by a large number of Americans, deleterious effects on healthcare providers, including hospitals, and financial challenges for employers. Anderson will be the featured speaker at a Chamber-presented symposium that will be held from 7:30-9:30 a.m. on Wednesday, Sept. 4 at Tri-City Wellness Center, 6250 El Camino Real.
Chamber honors Sullivan's solar energy campaign The Carlsbad Chamber of Commerce’s Sustainability Committee recently honored Sullivan Solar Power with the “Commitment to Sustainabilty Award” for the successful program that helped many residents of the city “declare their energy independence.” Sullivan’s Solar Program resulted in 41 solar installations throughout the city that resulted in more than 210,000 watts of energy. It was the largest community campaign in the company’s history, and led to a 5-percent cash-back to all program participants, or more than $65,000. “This was a grassroots community incentive program for property owners,” said Erica Johnson, the director of community relations for Sullivan Solar Power. “It was an extremely successful program, the largest collective deployment of solar power in the city’s history ... it exceeded our expectations.” Johnson said interest in solar continues to spike. The most recent motivator is the upcoming rate hike, in which some ratepayers who live by the coast will see their energy bills rise by up to 39 percent starting with their September bill. That development has kept Sullivan busy, and over the past 30 days it has received more than 1,600 calls of people expressing interest in their technology, Johnson said. Johnson said the level of interest in installing solar energy systems is surprising, given that the state of California’s rebate for property owners that installed solar power units
Sullivan Solar Power Community Developer Tara Kelly received the “Commitment to Sustainability Award” from the Carlsbad Chamber of Commerce’s Sustainability Committee. was exhausted at the beginnig of the year. “Despite what people think, the solar industry had grown by leaps and bounds,” Johnson said. “We have a higher penetration of the market despite working with a non-existent rebate market.” Though the rebate is no more, Sullivan customers can still save. The company is offering rebates of 20 cents per watt. which is the same as the now exhausted state rebate. “I really think we’re out of that ‘early adopter’ phase when it comes to solar,” Johnson said. “The market place is more educated (in the area) and people have already seen many of their neighbors and friends have solar installed.”
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CARLSBAD BUSINESS JOURNAL SEPTEMBER 2013 | 5
ArtSplash returns for 11th chalk-filled year Hot rodders. Skateboard enthusiasts. Art aficionados. Music lovers. Foodies. Creative Carlsbadians and children of all ages. These words describe only some of the 30,000 people who will enjoy the ArtSplash Chalk Art and Entertainment Festival on Sept. 28-29. The free-wheeling, family-oriented event takes place Saturday from 10 a.m. to 6 p.m. and Sunday from 10 a.m. to 5 p.m. on Armada Drive between Cannon and Palomar Airport roads Sporting a colorful theme of “The Wheel Deal,” ArtSplash 2013 marks its 11th anniversary of being a community celebration for arts education. Proceeds benefit arts and music programs in North County schools. The street will be packed with nonstop entertainment, hands-on arts and innovative new features, so it’s no wonder that everybody’s chalkin’ about ArtSplash. ArtSplash is once again proud to have the city as title sponsor. Mayor Matt Hall said: "ArtSplash has grown into a signature event for our city. Not only is it a wonderful celebration of arts and community, but it also supports our thriving local tourism economy.” Mayor Hall will welcome the crowd on Saturday at 12:25 pm. According to Chairwoman Joni Miringoff, ArtSplash attracts people from around SoCal, yet retains a warm hometown feel. “ArtSplash is a Carlsbad-centric event, by design,” she said. “In addition to Carlsbad eventgoers, many sponsors are local businesses, including several Chamber members. We thank the Chamber for putting out the welcome mat – literally – to ArtSplash. We hold our committee meetings there, so you might say the Chamber raises the spirit of community involvement to an art!” ArtSplash 2013 features include Saturday’s Noon-3 pm Taste@ArtSplash offering cuisine from local eateries such as Ignite, The Daily News and many more. Other returning favorites include sand sculpture by worldrenowned Gerry Kirk, Shokenji Taiko Vista Buddhist Temple Drummers and the Euphoria Brass Band, which performs on stage and then takes its New Orleans brass to the street. The big “draw,” of course, is museum-quality replica chalk art created by professionals
SIGNS ›Continued from Page 1 buildings that are more than 50,000 square feet to put up more signs than those that are allowed under the old ordinance. The exact number will be determined based on the size of the building. These revisions were among several that City of Carlsbad staff had suggested as part of a comprehensive update. According to a report from staff, the city had not reviewed its sign ordinance since 2001. The City Council disagreed with some of the revisions the Carlsbad Planning Commission made to the staff recommendation, seeking to keep the prohibition of digital signs in place and limiting the signs on large buildings. The Council understood the Commissioner’s concerns, but believed that it was important to provide the opportunity to allow for digital signs subject to review and approval of the City Council. They also believed that the larger buildings in the office/industrial area needed the opportunity to provide more signage for their tenants. At the meeting, Chamber President and CEO Ted Owen urged the council to proceed
on the pavement while people watch as well as kid-sized chalking and art-making opportunities. “Wheel Deal” features include pro skateboard demos, a Sunday car show, a silent auction of artist-painted skateboards and other activities in the works. Arts education is ArtSplash’s original and continuing impetus. To date, ArtSplash has contributed more than $42,000 to school programs in support of diverse visual and performing arts and music programs. During school year 2012-13, ArtSplash grants totaling $8,672 funded 17 enriching programs; the majority in schools located in Carlsbad. Valley Middle Art Teacher Sue DeWulf, who brings students to the festival to chalk every year, transformed her $700 grant into a beautiful art project involving more than 300 students. She says, “The students sculpted whimsical creatures utilizing 600 pounds of clay and colorful glazes purchased with grant funds.” For more information on ArtSplash 2013,visit www.facebook.com/carlsbadartsplash and www.carlsbadartsplash.org. with the staff recommendation in its original form. “We believe that the staff did a great job on balancing the needs of the business community and the City’s concerns about a potential proliferation of signs,” Owen said. He added that the ability for larger buildings to have more signs is reasonable, and will make it easier for customers and clients to find buildings in Carlsbad’s business parks. “Many of the larger buildings have more than one occupant and need the ability for major tenants to have a visible sign on the building,” Owen said. “Staff’s original proposal was a fair and equitable solution which is especially relevant to large buildings that have more than one tenant.” After the meeting, Owen said that electronic message board signs “bring business to the locations that have them and allow them to compete with regional commercial centers in other jurisdictions.” These types of signs advertise regional commercial facilities throught the state and we believe that they should also be allowed in Carlsbad,” he added. Owen praised the council for its vote, noting that it’s just another example of the city recognizing the importance of its businesses.
6 | WWW.CARLSBAD.ORG
Stockholders OK Life Tech's sale
l u n c h e o n
STATE OF THE CITY ›Continued from Page 1
Chamber of Commerce Board Chairman Carlton Lund, left, presents the 2013 Trendsetting Leadership Award to Carlsbad Mayor Matt Hall and council members Mark Packard, Farrah Douglas and (not pictured) Keith Blackburn and Lorraine Wood.
Photos provided by Google | Melissa McClure
The City “managed through the difficult times,” cutting its work force by 50 members while still keeping parks and libraries open seven days a week and city employees working full 40-hour weeks, Hall said. The Mayor also tipped his hat to the business community, noting that Carlsbad businesses increased hiring, going from 43,000 jobs in 2009 to 47,000 today, a 7.6 percent increase. The City issued 8,700 business licences in ‘09-’10 and 9,000 in this year. Though it only issued 1,500 building permits this year, those permits were for work that was worth $173 million — more than the 2,050 building permits the city issued five years ago, which were worth $104 million. “We still continue to grow,” Hall said. The mayor also noted the accomplishments of several Chamber members, including Datron World Communications, California Pacific Airlines, LEGOLAND California Resort, Life Technologies Corp., ViaSat and 5D Robotics. Also at the State of the City Luncheon, the chamber bestowed the Trendsetting Leadership Award to Mayor Hall and the Carlsbad City Council, honoring the “pay for performance” provision that the city negotiated with the Carlsbad City Employees’ Association. It was one of several awards presented at the event.
Ted Owen, president and CEO of the Chamber at the State of the City Luncheon.
Assemblyman Rocky Chavez, from left, with Carlsbad Mayor Matt Hall and Davis White of Google.
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Chowder is a well-traveled dog, but not by choice. He was a stray dog when he was found in Texas and taken to an animal shelter. When he ran out of time at the shelter he went into a foster home for a year. After that Chowder was transferred to RCHS through the FOCAS program. Ten days later, he was adopted! But after 10 mo. his owner lost his home and he returned Chowder. Now he needs a home where he can spend the rest of his life. He’ll do best with adults and teenagers. The $145 adoption fee for Chowder includes medical exam, up to date vaccinations, neuter, and microchip identification.
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Life Technologies Corporation stockholders voted to adopt the previously announced merger agreement providing for the acquisition of Life Technologies by Thermo Fisher Scientific at a special meeting on Aug. 21. More than 98 percent of votes cast at the meeting were in favor of the transaction, representing more than 72 percent of all outstanding shares. “Today’s approval represents a significant milestone and brings us one step closer to joining Thermo Fisher,” said Gregory T. Lucier, chairman and chief executive officer of Life Technologies. “I want to thank all of our stockholders for their support, which is a testament to the tremendous advantages and opportunities that this transaction provides to stakeholders of both companies. We look forward to joining together with Thermo Fisher in order to accelerate innovation for our customers and achieve greater success in a highly competitive global industry.” As previously announced on April 15, the Board of Directors of Life Technologies approved a definitive agreement under which Thermo Fisher will acquire Life Technologies for $76.00 per share in cash, subject to potential increase in certain circumstances if the merger does not close by January 14, 2014, as described in the definitive proxy statement relating to the merger. The transaction, which is expected to close early in 2014, remains subject to the satisfaction of the closing conditions set forth in the merger agreement, including regulatory approvals.
Rancho Coastal Humane Society 389 Requeza Street Encinitas. Wednesday - Monday from 11 to 5. 760-753-6413 • SDpets.org
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Dine with Your Dog If Fido’s a foodie, you’ll want know about our dog-friendly dining choices! Not only do they support your dog habit they are lending support to help find “forever homes” for other companion animals at RCHS.
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CARLSBAD BUSINESS JOURNAL SEPTEMBER 2013 | 7
The ReadyCarlsbad Business Alliance made its first-ever award presentation at the State of the City Luncheon, bestowing the Commitment to Emergency Preparedness Award upon Air Products and Chemicals, Inc. The award recognizes the “accomplishments and contributions to prepare employees, protect and continue business operations and contribute to community recovery in the event of large-scale disasters.” To determine the winner, the alliance asked all of the nominees a series of questions about the type of emergency programs that they have implemented, how their employees are involved and how other companies might be able to recreate their program. Among the reasons for winning, Air Products and Chemicals, Inc. has: • Mandatory employee preparedness training requirements, • A crisis management plan that includes annual drills with the Carlsbad Fire Department and county hazmat department, • An emergency action plan that is communicated to all employees, • An employee emergency line for off-site employees, • A facility database that includes critical information for all global sites, • And a very robust emergency preparedness, response and recovery organization. Air Products & Chemicals Inc. also has shared its comprehensive emergency action plan with others in its industry at conferences, and shares it with local businesses that have used it to create their own plans. Here are some of the other emergency preparedness steps being taken by the other nominees.
Photo provided by Google | Melissa McClure
Businesses show commitment to emergency preparedness
Fire Chief Kevin Crawford and Eileen Turner of Air Products and Chemicals.
LEGOLAND California Resort has a Security & Safety Team that’s responsible for site safety for employees and guests. Security has daily incident reviews and site inspections including complete documentation to ensure frequent reviews and
BOOKS ›Continued from Page 1
Maxwell, Ken Blanchard, John Izzo and Stephen M.R. Covey.
transformation. Practical examples and insights on how servant leaders handle day-to-day common challenges and obstacles are highlighted as experts reveal what it takes to change a culture. Working together with Datron managers, members of SLI’s writing and development team helped nurture Datron’s transformation through small group meetings, behavioral standards, 360-degree peer assessments, succession planning and training with renowned leadership experts such as John
Scripps Health
Scripps follows the hospital incident command system (HICS), taking an all-hazards approach, ensuring that their staff is trained to respond to anything. It has an annual hazard vulnerability analysis (HVA) to prepare to the hazards that it is most vulnerable to, and implemented an emergency response team and decontamination team. It holds drills for fire, earthquake, shelter in place, evacuation, bomb threat, mission person and special threats such as a hostage situation. Having the ability to provide emergency services to those injured in a local disaster, while continuing to care for hospitalized patients, is a critical community need. Scripps, together with other first-responder agencies (public and private), will engage in a variety of training, outreach and planning initiatives.
Omni La Costa Resort and Spa
Several years ago, the resort updated its entire manual. It consists of 38 sections ranging from bomb threats, power outages, fire, medical emergencies and the resort continues to work on new procedures including wildland fires, active shooter, norovirus outbreak and pandemic preparedness. Every worker takes part in the emergency response. The resort has three main teams: the Crisis Management Team (CMT), the Emergency Response
LEGOLAND California Resort
Team (ERT) and the Internal Emergency Contact Team (IECT). Each Team has specific responsibilities during an emergency. It also reminds employees to plan and be ready for disaster at home. Omni La Costa can also offer shelter for those displaced in emergencies or for emergency responders.
solutions of potential safety and security concern. The resort also has an emergency action plan that outlines emergency procedures and responsibilities and potential external resources for complete incident management. It has a health services clinic staffed with certified individuals and first aid and emergency supplies. It also has a trained management team to help operationally guide the park through emergency situations. LEGOLAND employees are involved at all levels of the organization beginning on day one of employment. “Our (employees) are well trained and live in surrounding local communities which can help in the case of large scale disasters affecting the community,” the nomination stated. “Local guests who choose to visit our park are in good hands should an emergency happen.”
SDG&E
SDG&E’s Community Fire Safety Program (CFSP) includes education and outreach programs to agencies
Southwest Airlines, TD Industries, WD-40, Popeyes Louisiana Kitchen, Nordstrom, Toro Company, Zappos and Starbucks. Servant leadership is a smart leadership approach with a moral imperative to lead for the sake of others. Great leaders model behaviors that equip and inspire others toward individual and community greatness. They do not see their employees as tools, but as humans with dignity who they can empower to make a difference. “Servant leadership has been called the most successful leadership strategy in overcoming lackluster employee performances, poor financial results, and executive
Focus on Servant Leadership AT&T executive Robert Greenleaf launched the modern servant leadership movement in corporate America in 1968, noting that servant leadership begins with “the natural feeling that one wants to serve.” Since then, this method of combined leadership and stewardship that maximizes profits, people, and the planet has transformed corporate cultures around the world. In addition to Datron, well-known organizations that have successfully implemented servant leadership include
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and customers, prevention measures that help reduce the risk of fires and outages, and enhanced readiness and response capabilities. A top priority of SDG&E is the safety of its customers, employees, and the public. It collaborates with first-responder and emergency services agencies throughout the region to improve wildfire prevention and response and to support public safety awareness programs. A cornerstone of SDG&E’s efforts to reduce fire risk is community outreach and education. Each year, SDG&E employees participate in more than 100 organized events, mail nearly 35,000 Emergency Preparedness brochures to residents in the High-Risk Fire Area (HRFA) and distribute more than 10,000 Emergency Preparedness Brochures and 5,000 Emergency Preparedness Z-cards in English and Spanish at community events. SDG&E maintains a 24/7 Dedicated Emergency Operations Center (EOC) that has been activated more than 78 times in 12 years for events including Red Flag Warnings, Firestorms 2003 and 2007, 2011 Pacific Southwest Outage, special events and system emergencies. EOC team members regularly drill for emergencies to ensure the team is ready to respond should a disaster occur. SDG&E maintains three Mobile Command Centers and Satellite Phone Booths to bolster rapid emergency response and communications. The mobile units connect SDG&E and emergency responders with satellite and high-speed wireless communications.
TaylorMade Golf Co.
TaylorMade Golf Co. has implemented Business Emergency Safety Training (BEST involving 50 employees and four buildings. They have plans to roll it out to other buildings in other countries as well. BEST employees are responsible for training in building evacuation, triage, CPR, fire extinguisher use, workplace violence, and various safety subject matters, including safe use of general office equipment. The program has been in place for
1959 Palomar Oaks Way, Carlsbad (855) SLI-LEAD / (855) 754-5323
www.servantleadershipinstitute.com
self-interests,” Barter says. “Our goal is to challenge traditional perceptions of leadership and teach a smarter way to lead that truly makes a difference in our world.” SLI resources include many fieldtested publications, formal training programs, coaching, keynote speakers,
two years and typically meets on a monthly basis. The program builds awareness for all employees throughout the workplace. So far there has been no need to put the plans into action other than for drill purposes. In conjunction with the BEST program, the company has an emergency management team, and a crisis team, that are all rolled into a business continuity plan. In terms of helping the community, in the event of an emergency TaylorMade is hoping to be self-sufficient for a short period of time to maintain the situation until the emergency responders can arrive. Or in the event of an area-wide disaster, when the first responder’s resources are limited, the first responders may be able to respond to a business or community that is less prepared than TaylorMade.
Tri-City Medical Center
Over the last several years Tri-City Medical Center has developed and implemented a variety of comprehensive emergency programs for the hospital to ensure our capability to respond to community wide emergency events. Tri-City has taken the lead in creating a vision with community partners to support the local business in its district, enhanced overall community preparedness planning, developed the Business Emergency Response Initiative, where it has partnered with agencies to help promote business readiness throughout the North County. The hospital sponsored a day seminar for local North County businesses, and provided them with the training on emergency response planning and assisted them in the development of their business emergency response programs. Another way Tri-City Medical Center has supported our community during disaster events was the most recent 2011 power outage where the hospital was able to support local physicians in the community by providing temporary refrigerated storage for their medications and vaccinations.
and conferences and workshops featuring well-known leadership experts. SLI’s 2014 Winter Conference will take place at the Omni Hotel in downtown San Diego from February 3-5. The annual conference, Changing the Game, will include leadership experts and bestselling authors Covey and Olivia McIvor; leaders (game changers) from Kindred Hospitals and Popeyes Louisiana Kitchen; and other special guests to be announced. The conference will also feature a special team-building event at PETCO Park. Visit www.servantleadershipinstitute.com, to order the guidebooks and get general information about servant leadership or call 855-754-5323.
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8 | WWW.CARLSBAD.ORG
BUSINESS EXPO 2013 PRESENTS
MONDAY
NOVEMBER 4
S E RVA N T L E A D E R S H I P I N S T I T U T E 1959 PALOMAR OAKS WAY | 3RD FLOOR | CARLSBAD, CA | 92011
M O R E D E TA I L S C O M I N G S O O N • T O R E G I S T E R F O R A B O O T H , CALL THE CHAMBER AT 760 931 8400 OR VISIT WWW.CARLSBAD.ORG
RIBBON CUTTINGS
Meet some of the Chamber's newest members and those celebrating milestones.
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SEPTEMBER 2013
MEMBER DIGEST
9
WHAT'S INSIDE
› First Friday › Sundowner › Renewals
› Ribbon Cuttings › New Members › On the Move
› And More...
YOUR GUIDE TO WHAT'S HAPPENING AT THE CARLSBAD CHAMBER OF COMMERCE
Do you have what it takes to join our board? Do you envision yourself as a leader? Do you know someone who is a devoted member of the Chamber and would enjoy contributing even more? The Chamber’s Nominating Committee is seeking nominations for its Board of Directors vacancies for 2014. If you are interested in a director position, or if you want to nominate someone, please contact the Chamber by September 20, 2013. The board represents all segments of the local business community, including hoteliers, family-owned companies, corporations, educational institutions, hospitals, and civic agencies. For more information, contact Toni Padron, executive vice president/COO at the Chamber at 760-931-8400 ext. 212
I’m going to tell you a litte story two members recently shared with me. Nerice Kaufman, exective director of Hospice of the North Coast started to chat with Marti Kapocious of Workplace Services/Kuske Interior at the Business Resource Committee meeting. Kaufman explains, “When Marti learned about HNC’s innovative new, six-bedroom, in-patient Pacifica House hospice residence opening in Carlsbad, she offered her design expertise on a complimentary basis, plus her company’s products, including carpeting and furnishings for the main areas, at a very good price.” Both women agree that the result is a beautiful marriage of form and function. “I wanted to help Nerice and her staff create a warm, homey feel throughout the residence while remaining cognizant that Pacifica serves as a healthcare facility with specific standards of use to uphold,” Kapocious said. We have many similar interactions between members at the Chamber. I think this story illustrates very well what networking is all about. It’s not about trying to hand out your business cards to anyone who will take them at a Chamber event. It’s not about setting out to sell your
MEMBERSHIP COUNTS
1-2-3
Vice President, Corporate and Member Relations CARLSBAD CHAMBER OF COMMERCE
products or services to Chamber members, expecting that your Chamber membership can be a directory for leads. Instead, your Chamber membership is about forging relationships first, of being part of the Chamber community. Attend our events to get to know other members. Discuss what you’re doing, seek or offer advice for business-related issues. Through your interactions, establish yourself as a go-to source. When someone you’ve interacted with needs your service or product, or finds about someone else who does, they might pass the referral on to you. If you need a service or product, or encounter a similar need, you do the same for the other business. It’s a more organic relationship building, creating a network of contacts into relationship-building business. It’s the concept at the heart of ”The Go-Giver: A Little Story About A Powerful Business Idea” by Bob Burg and John David Mann. Many
Marti Kapocious and Nerice Kaufman.
“I
wanted to help Nerice and her staff create a warm, homey feel throughout
the residence while remaining cognizant that
“
Focus on forming relationships
BEV JORGENSEN
Networking the Carlsbad Chamber way
Pacifica serves as a healthcare facility with specific standards of use to uphold. — Marti Kapocious, Workplace Services/Kuske Interior
of you have already read it, since the Chamber and its members have been recommending it and applying its “Five Laws of Stratospheric Success” in your approach to business. But for those of you who haven’t read it, I recommend you pick it up.
This book — which is definitely a quick read — illustrates the concept of creating meaningful relationships that help others, and that these could ultimately lead to unexpected rewards. Pick it up, learn from it and instead of being a “go-getter,” set
DID YOU KNOW:
• There are more than 8.3 million women-owned businesses • These businesses generate nearly $1.3 trillion in sales and employ 7.7 million people • Between 1997 and 2012, the number of overall businesses increased by 37 percent — but women-owned businesses increased by 54 percent, more than 1.5 times the national average
AD DEADLINE Sep. 16
SIZES
LOOKING FOR THE
SUPERWOMEN OF BUSINESS October is National Women in Business month and the Carlsbad Business Journal will be commemorating the occasion with a special section celebrating the accomplishments of the female entrepreneurs and business leaders who are part of the Carlsbad Chamber of Commerce.
Reserve your space to advertise in this special edition.
For more info contact Julie Miramontes at 760.931.8400 or julie@carlsbad.org
3.25” x 2” inches - $75 1/8 Page $269 1/4 Page $459 1/2 Page $790 Larger sizes also available
To celebrate National Recycling Day the November issue of the CBJ will focus on recycling, renewables & sustainable goods & services. Deadline to participate in this issue is October 15
10 | WWW.CARLSBAD.ORG
NETWORKING OPPORTUNITIES
MEMBERS ON THE MOVE
Museum hosts next Sundowner Come mingle after work and learn about music when the Museum of Making Music hosts the next Sundowner, from 5-7 p.m. on Thursday, Sept. 19. The Museum of Making Music explores connections between people, instruments and the music we make. The museum does this through selfcurated exhibitions revealing the history and culture of the music products industry, as well as through educational programs, concerts and interactive activities that provide equal access to the enjoyment and benefits of active music making. Through its work, the Museum of Making Music is making the world a more musical place. This event is open to chamber
SEPTEMBER 19 members only. Admission is $5 cash at the door. If you are a prospective member and would like to attend please rsvp to the Carlsbad Chamber at 760-931-8400. For more information or to donate a raffle prize, contact Kathy Steffen at 760-931-8400 or ksteffen@carlsbad.org.
Are you creating a great customer experience? Are you making a great impression with your customers? Come to October’s First Friday Breakfast and learn the importance and benefits of providing a great customer BRICK experience in your organization. The speaker will be Wendi Pomerance Brick, president and CEO of Customer Service Advantage, Inc. The First Friday Breakfast will be held from 7-9 a.m. on Oct. 4 at the Omni Resort La Costa Resort and Spa, 2100 Costa Del Mar Road in Carlsbad. Brick’s 20-year public sector career started with the County of San Diego and continued with the City of San Diego. For the past 15 years she has been developing and implementing
OCTOBER 4 customer service improvement programs for government agencies. Among her accomplishments, she has provided staff and management training, conducted surveys and implemented reward and recognition programs. In 2003 she decided to launch her own business, and it became her
full-time pursuit in 2009. CSA’s mission is to improve the quality of life of its customers, and the customers of its customers, by providing an innovative reliable customer-focused project and process improvement. First Friday Breakfast is the Chamber’s premiere networking and business promotional event, and one of the most regularly attended monthly programs. The cost is $32 for Chamber members who register before Sept. 27. Afterward, the preregistration cost is $55 and $60 at the door. Prospective members must contact the Chamber at 760-931-8400 to rsvp. Tabletop exhibits or Soapbox presentations are available to promote your business for $75 each, which includes one breakfast, and must be reserved in advance by calling Kathy Steffen at 760-931-8400 or ksteffen@ carlsbad.org.
0 1 t e N r e Chamb
ActivCare at Bressi Ranch has announced the appointment of John W. Daly, M.D. as Medical Director of the community. Dr. Daly is one of the most respected Internists specializing in Geriatric Medicine in San Diego County, and has trained many of the physicians in the field today. Dr. Daly has managed the Geriatric Medicine Fellowship program at the UCSD School of Medicine for many years and continues as a Professor Emeritus at the University. We are privileged to have DALY Dr. Daly in our community every week following up with our nursing staff and visiting with residents. California Bank & Trust has named two key leaders of their new Carlsbad branch, which was recently relocated to the Palomar Commons, 2501 Palomar Airport Road. Randy Ferren is vice president and branch manager and Kerry Ross is FERREN ROSS senior vice president and manager of the North County Corporate Banking Group. Ferren previously served as the branch manager of the former location, at 2141 Palomar Airport Road, and brings 18 years of credit analysis, commercial lending and business management to the Palomar Commons branch. Ross brings nearly 40 years of corporate and commercial lending experience to the Palomar Commons office. Previously, Ross was the vice president and branch manager of CB&T’s Vista location. Studio 2055 Brand Development + Design has announced the addition of Annie Sexton as their new lead web developer and named Tawny Perkins as marketing assistant. While working abroad in Japan for over two years, Sexton’s SEXTON PERKINS degree allowed her to expand her knowledge of web development and graphic design. She graduated from the University of North Texas with a BA in International Studies and lives in Carlsbad. Perkins will coordinate social media accounts and lead generation and continue to be involved with Internet marketing, corporate branding and B2B marketing. She is currently president of the Undergraduate Communications Society at UCSD, where she is completing a degree in communications.
Need expert Advice? Turn to the Carlsbad Chamber of Commerce
NCHEON
BROWN BAG LU
P U G N I W O L L O F 10 TIPS FOR WEDNESDAY
OCT. 23, 2013. .M 11:30 A.M. - 1 P
Allen Speaker: Wanda Follow up Savvy
d 10 Tips n a g in k r o tw e N Table Facilitatedess cards! • Bring your own lunch.
f busin • Bring plenty o ation For More Inform
ce ber of Commer Carlsbad Cham 92008 ., Carlsbad, CA 5934 Priestly Dr 931-8400 Phone: (760) 1-9153 Fax: (760) 93 d.org www.carlsba
ovided) (drinks will be pr
- Members $10 Admission
per $10 at the door The workshop is s will nt pa ci r, and parti Chamber Membe -served st fir e, om a first-c be welcomed on . ent only please basis. Cash paym
TER TODAY!
ED REGIS SPACE IS LIMIT
Business Counseling Now Available! The Small Business Success Center, located in the Carlsbad Chamber of Commerce office, has a regular schedule of counselors who donate their time to help you become a SUCCESS. We also have workshops
Consultations & Workshops Available For more information please call (760) 931-8400.
and financial consultations to meet the needs of new and growing businesses.
SMALL BUSINESS SUCCESS CENTER
CARLSBAD BUSINESS JOURNAL SEPTEMBER 2013 | 11
CALENDAR
RIBBON CUTTINGS
Chamber Events F ree Score Business Counseling by Appointment Mondays & Fridays Chamber Closed - Labor Day
SEPTEMBER CARLSBAD BY THE SEA RETIREMENT COMMUNITY 2855 Carlsbad Blvd., Carlsbad 760-720-4580 | www.carlsbadbythesea.org Come live life your way at one of San Diego, California’s best senior living communities. At Carlsbad By The Sea, the Pacific Ocean is your backyard and the quaint Carlsbad Village is at your doorstep.
BRUBAKER & ASSOCIATES, INC. 2585 Pio Pico Drive, Ste. 100, Carlsbad 760-729-1800 | www.brubakerassociates. com After 17 successful years of providing the best in independent insurance services, Brubaker & Associates has moved to a new building in Carlsbad to serve you even better!
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Business Resource Committee
04
Health Care Reform Symposium
05
chamberpl8tes
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September - First Friday Breakfast
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Sustainability Committee The Carlsbad Business Academy
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Ambassador Committee
13
Wildland Fire Breakfast Symposium
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Technology Advisory Committee
19
September Sundowner - Museum of Making Music SHADOWRIDGE GOLF CLUB
MICHAEL GADDIS, J.D. REALTY GROUP
1980 Gateway Drive, Vista 760-727-7700 | www.shadowridgecc.com Shadowridge Golf Club’s $1 million renovation will be completed in the summer of 2014. Call to inquire about a special member-to-member discount for Chamber members.
6104 Innovation Way, Carlsbad 760-754-5626 | www.michaelgaddis.com Quality real estate agency led by Michael Gaddis, J.D., attorney and real estate broker with a decade of experience helping people buy, sell and save their homes. Specializing in luxury home sales, purchases and short sales throughout San Diego County.
™
provides an opportunity for 8 chamber members to meet for breakfast or lunch and learn more about each other’s businesses. A Carlsbad Chamber member hosts and facilitates at a local chamber member restaurant.
P R E PA R E YO U R B U S I N E S S F O R
SEASON WILDLAND FIRE
BREAKFAST SYMPOSIUM
This program is open exclusively to Carlsbad Chamber members;
FRIDAY | SEPTEMBER 13, 2013 | 7:30 - 9:30 A.M.
and the only cost is the price of your meal. RSVP’s are required
Fire Season is upon us – Don’t wait until it starts to learn what to do! Come learn about being prepared for when an emergency strikes in your neighborhood; at your business!
and can be made by contacting the person listed next to the date.
COST: $15 - Breakfast included for all pre-registered by Aug. 30 $20 - At the Door: (no breakfast)
Thursday, September 5
4:30-6 p.m. Call Sherry Courtney-Lawrence 760.579.0850
Thursday, September 26 11:30 a.m. – 1 p.m. Call Paula Anderson 760.696.9733
LOCATION: Carlsbad Safety Training Center 5750 Orion Street, Carlsbad, CA 92010 SPEAKERS: Theodore (Huckle) Berryman Carlsbad Fire Captain
Carlsbad Wildland Fire Plan Dr. Rick Hinrichs
Managing Director for Disaster Services Red Cross
10 Steps to Employee Preparedness
For more info call: (760) 931-8400 or visit www.carlsbad.org
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Military Affairs Committee
25
Education Committee
26
chamberpl8tes
12 | WWW.CARLSBAD.ORG
THE CHAMBER SALUTES ITS JULY 2013 RENEWALS The Angel’s Depot B.A. Worthing, Inc. BJ’s Restaurant & Brewhouse Beckman Coulter, Inc. Benchmark Commercial Insurance Services, Inc California Bank & Trust (Carlsbad Branch) The Carlsbad Charitable Foundation Casa de Bandini Colliers International Carlsbad Coolest Shoes in California Costco Wholesale Cox Business Crepes & Corks Restaurant & Wine Bar Curtis Management Company, Inc. Dave’s Auto Service & Repair Democratic Club of Carlsbad/ Oceanside European Wax Center - Bressi Ranch Farrow Realtors The Fields Church FlooringAmerica by PicketFence Design Foundations for Reading & Learning GlenView Assisted Living & Glenbrook Skilled Nursing Grand Pacific Resorts, Inc. Guardian Association Management Hilton Carlsbad Oceanfront Resort & Spa ITT Technical Institute The JR Phillips Group Inc. JoS. A. Bank Clothiers Kids Smile Pediatric Dentistry Landis Real Estate
Lanikai Mobile Home Park c/o Ocean Park Estates, LLC Leichtag Foundation The Loftin Firm, LLP Lola’s 7-Up Mexican Market & Deli Marie’s Words McDonald’s of Palomar Airport Road MeringCarson Mission Electric Supply, Inc. Modern Postcard Morrison Insurance Services, Inc. My Hooves and Paws My Plumber North County Lifeline Pacific Business Centers Palomar Investigative Group, Inc. Pat Haeckel, Realtor-Real Living Lifestyles Realty Pharmaca Integrative Pharmacy Philips Healthcare Quinn’s Rapid Recharger Reef Slice of Heaven Catering Sudberry Properties Swirlicious Yogurt Tavarua Senior Apartments Tommy Hilfiger Trinity Biotech, Inc. (MarDx Diagnostics, Inc.) The UPS Store 3085 ViaSat, Inc. Waste Management Wells Fargo Commercial Banking (Carlsbad) YourOpsManager
WELCOME NEW MEMBERS For complete listings visit www.carlsbad.org Business Consultants & Services
Bootstrap Incubation, LLC Wyatt Hinshaw | 858-227-4718 www.bootstrapincubation.com Bootstrap Incubation LLC is a private equity firm which invests in talented people, or small companies of talented people, with a sustainable business model who need help growing their business, are looking for strategic assistance, or partial liquidity. ZBglobal Randy Ade 760-444-9467 | www.zbglobal.com ZBglobal is a Zero Boundary Corporation specializing in custom online portals, workforce engagement, learning and development, innovation, cool tools, powering brilliant workplaces.
Education - Colleges & Universities
Kaplan College Vista Maria Baschshi | 760-305-0220 www.kaplancollege.com/vista-ca Kaplan College in Vista, CA can help prepare you for an exciting career in your chosen profession. Our career-focused programs can offer you the training and job knowledge that can provide you with marketable skills.
Candles
Scentsy Naomi Chen |760-846-1122 www.naomichen.scentsy.us Incredibly scented flameless candlewarmers. Works extremely well as a closing gift or customer appreciation gifts to increase referrals.
Insurance - Health Insurance Plans
Health Plans 4 Less Tim Mack | 760-536-4848 www.healthplans4less.com Health Plans 4 Less helps self-employed individuals & small businesses save 30-50 percent on their health insurance and helps them get much better benefits in the areas that matter most.
Insurance
Schack Insurance Services, LLC John Schack | 760-712-4723 Full service Property, Casualty and Financial services insurance agency. With over 30+ years in the insurance industry, we are experts in Personal and Commercial Insurance.
Non-Profit Organizations
Kids For Peace Jill McManigal | 760-730-3320 www.kidsforpeaceglobal.org Kids for Peace is a global non-profit that supports and empowers kids to create peace in their lives, schools, communities and world. TERI, Inc. Kimmy Roberts | 760-721-1706 www.teriinc.org To improve the quality of life for children and adults with autism and special needs. TERI looks to the future by building the Campus of Life, which will provide an inspiring and therapeutic environment.
Pet Stores & Supplies
SISU Concepts, Inc. Carol Coleman | 760-918-9113 www.sisumovement.com Creating bold, authentic and timeless watch designs.
California Pets Joyce Newberry | 760-730-0377 www.californiapetssandiego.com From beautiful birds to cute, cuddly puppies and kittens; we have a vast selection of pets that would make the perfect addition to your family and lifestyle.
Environmental Services
Property Management
Distributors & Wholesalers
Ingenium Heather Dody | 760-745-8780 www.pureingenium.com Ingenium provides full-spectrum environmental and waste management services including transportation, recycling and repurposing of hazardous, biological and radiological materials.
Health & Wellness
Marathon Pain Relief Inc. Patrick Rettew | 949-422-6159 www.marathonpainrelief.com Marathon Pain Relief Inc. is dedicated to significantly improving the quality of life of our customers through superior, innovative and natural topical pain relief products.
Health & Fitness
TITLE Boxing Club Carlsbad Hannah Bassett | 760-633-4822 www.titleboxingclub.com High energy, high-intensity total body boxing and kickboxing fitness workouts in a group setting with a personal training feel. We don’t actually fight, but you may cry uncle!
Manager4Less Anna Jamaa | 760-969-1619 www.manager4less.com Manager4Less is your low-cost property management company. We specialize in both residential and commercial real estate management.
Publishers
ZCode Magazines Derrick Breaux | 619-717-2322 www.zcodemags.com ZCode Magazines publishes local community magazines throughout San Diego County with a distribution of more than 160,000 homes.
Real Estate - Home Builders
Davidson Communities Bill Davidson | 858-259-8500 www.davidsoncommunities.com Davidson Communities designs, builds and markets single-family and multi-family housing that meets diverse living needs, and develops master-planned communities that stand the test of time.
Solar Energy
Home Improvements
Lowe’s Marc Stein | 760-331-0195 www.lowes.com Lowe’s has been helping our customers improve the places they call home for more than 60 years.
Sunpro Solar Emily Barry | 951-570-7914 www.sunpro-solar.com Sunpro Solar is committed to helping families stop giving away their hard-earned money to the electric company by making the smart switch to solar power.
Hospitality Consulting
Tennis Instruction
Zingle Ken Barnes | 877-946-4536 www.zinglenow.com Zingle enables mobile text communication between businesses and their customers. Zingle provides specific solutions for hotels, valet parking, food service and more.
Dennis’ Tennis Dennis Stojewa | 760-602-1013 www.dennistennis.com We provide group & private tennis instruction, also year around apartment/condo communities instruction on a contractual basis.
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THE CARLSBAD CHAMBER OF COMMERCE PRESENTS
CARLSBAD
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SUNDAY 8 A.M. TO 4 P.M. SHUTTLE STOPS FROM WESTFIELD PLAZA CAMINO REAL West of Sears. Off Highway 78, just east I-5; exit Jefferson and go south.
NOV. 3, 2013 THE NATION’S LARGEST ONE-DAY STREET FAIR
OVER 900 EXHIBITORS ARTS & CRAFTS • CHILDREN’S GAMES & RIDES
FROM POINSETTIA TRAIN STATION Parking lot of Coaster station, 6511 Avenida Encinas, just off the I-5; exit Poinsettia, go west.
INTERNATIONAL FOOD CENTER BEER GARDEN• PA N C A K E B R E A K FA S T INFO: (760) 931-8400 OR WWW.CARLSBAD.ORG
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CARLSBAD BUSINESS JOURNAL SEPTEMBER 2013 | 13
14 | WWW.CARLSBAD.ORG
CARLSBAD SCHOOL NEWS
Superintendent CARLSBAD UNIFIED SCHOOL DISTRICT
for some of the most promising careers. A biomedical program will start this year, followed by an engineering program in 2014-15. The school also will develop mentorships and internship with the local business community to guide our young people in becoming tomorrow’s entrepreneurs and innovators. This will be a year of firsts: First pep rally, first school play, first engineering project. What will Bobcats be known for? Our students will play a vital role in determining what these “firsts” will look like and what traditions will be developed for the thousands of Bobcats to follow. Carlsbad Unified School District is excited to offer two comprehensive high schools in which students can pursue their educational dreams. What decision this year will draw students to Sage Creek in the future? Those answers have yet to unfold, but the feeling of genuine excitement is palpable on campus. We are all looking forward to the story of Sage Creek High School.
“T
he school will have a STEM focus, which means that its Science, Technology, Engineering and Mathematics programs will prepare students for some of the most promising careers.
“
Sage Creek High School. The baton has been passed from the voters to the design team to the construction crew to 300 enthusiastic students. Like parents of a newborn, Carlsbad Unified couldn’t be prouder. Set to welcome its first class on Aug. 28, Sage Creek High School sprawls across the hillside at the top of Cannon Road and College Boulevard. Its 57 acres include a gymnasium, 55 state-of-the-art classrooms, an athletic stadium and track, tennis courts, a beautiful library and inviting outdoor spaces surrounded by native landscaping. The community’s newest high school will become a story of its students — the Bobcats. Students have selected electives from an impressive list, offering everything from Mandarin, to drama/theater, to architectural design. They are forming clubs and trying out for 18 different sport teams, including field hockey. The lab supplies are out of boxes and in the hands of eager learners, and clean uniforms are being sported by the athletes flying around on fields and courts. These enthusiastic freshmen, along with their talented teachers, support staff and administration, are busy creating the community of learners that will become the true legacy of Sage Creek High School. The school will have a STEM focus, which means that its Science, Technology, Engineering and Mathematics programs will prepare students
SUZETTE LOVELY, Ed.D.
Sage Creek High School ready for its year of firsts
Sage Creek High School, CUSD's new high school, opened Aug. 28.
Leading a decade-long research initiative with a team of 75 international scientists, CSUSM’s Dr. Betsy Read has documented the first-evel algal pan-genome.
Leading a decade-long research initiative with a team of international scientists, Dr. Betsy Read from CSUSM has documented the first-ever algal pan-genome after sequencing 13 strains of the marine phytoplankter Emiliania huxleyi. Their findings address the alga’s ability to survive in diverse oceanic environments, which opens avenues for new research on climate change, global carbon cycling, biomineralization and the design of novel materials with biomedical applications, such as bone scaffolding, implants and periodontal structures. The phenomenon of a pangenome, or family of species-specific genomes, is commonly seen in bacteria, but this is the first reported
example in eukaryotic algae. Drs. Betsy Read, Xiaoyu Zhang and the late Tom Wahlund from CSUSM and Dr. Igor Grigoriev from the U.S. Department of Energy’s Joint Genome Institute (JGI) coordinated the project, which involved an international team of more than 75 research scientists from 12 countries. The team’s research, touted as filling a vital gap in the tree of life, was published in the renowned journal Nature on June 12, 2013.
A small but mighty organism
The third most abundant phytoplanktonic species in the ocean, E. huxleyi is a single-celled organism enveloped by an elegantly sculpted
DR. JAN JACKSON
Algea discovery unlocks clues for biomedical mysteries HIGHER LEARNING
Vice President of Community Engagement CALIFORNIA STATE UNIVERSITY SAN MARCOS
calcium carbonate cell covering. Although it cannot be seen with the naked eye, E. huxleyi forms massive blooms that can be viewed by satellite imagery because of the remarkable light reflecting properties of its shell, which gives the water a milky
Benefitting SolutionS for Change
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Dinner • Silent & live AuctionS • Keynote ADDreSS $300 per person | TAbles seat 10 | reserve your seats today For more info about tickets and sponsorship opportunities, please call: 760.941.6545 EXT. 320 or visit SolutionsForChange.org/Events We appreciate the generous support and commitment of our sponsors. prESEnTing SponSorS
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ChampionS oF ChangE Datron, Forte for Children (Formerly the DEI Children’s Charitable Foundation) lEaDErS oF ChangE Brian and Blossom Kennedy & Family, Scratch media, Watkins manufacturing Corporation, Wells Fargo
turquoise tint. Arguably no other single living creature has such a striking impact on our planet as seen from outer space. While the chalky fossilized remains of E. huxleyi are prominently displayed in the White Cliffs of Dover, and blooms are often associated with southern coast of England, the microorganism can be found in almost all marine ecosystems. According to Dr. Read, E. huxleyi is in nearly every bucket of water pulled from the ocean, with the exception of the polar seas. As such, it is the basis of virtually all marine food systems.
Where researchers are headed next Embedded in the genetic code are clues about the cellular processes that enable E. huxleyi to produce the remarkably elaborate shell-like scales that surround the cell. Identifying genes and proteins involved in this process could lead to the design of new composite materials and devices for applications related to bone replacement, periodontal reconstruction, sensing systems, optoelectronic devices and the treatment of diseases. “We have some clues,” Dr. Read said, “but what makes this more difficult is that proteins involved in calcification are not conserved across biomineralizing species. What we desperately need in order to identify the genes involved in biomineralization, is a genetic transformation system. Several labs -- including my own -- are aggressively working on this.” To fully exploit the sequence information and to achieve a complete understanding of E. huxleyi, its biological significance and impact on society and the environment, Dr. Read and her colleagues will next begin to study the products of the genome and define the role of each and every gene, how they interrelate and come together in synergistic networks to accomplish complex functions.
CARLSBAD BUSINESS JOURNAL SEPTEMBER 2013 | 15
This holiday season is the perfect time for businesses, reward their faithful employees.
It's Time to Celebrate!
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C
D
A
Consider the services of the following Carlsbad Chamber of Commerce members when planning your holiday party.
C
A Canyons
5800 The Crossings Dr. Carlsbad, CA 92008 For more information please contact Sara Rader at (760) 444-1885 thecrossingsatcarlsbad.com
D
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Hilton Garden Inn Carlsbad Beach
Miguel's Cocina
6450 Carlsbad Blvd. Carlsbad CA 92011 (855) 476-4003
5980 Avenida Encinas Carlsbad CA 92008 (760) 759-1843
(Catering Available)
Kona Ice North County Mobile Shave Ice (760) 420-8886 richardj@kona-ice.com www.kona-ice.com
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(Catering Available)
1901 Calle Barcelona Carlsbad CA 92009 (760) 634-3443 casadebandini.com
(Catering Available)
3292 Roosevelt St. Carlsbad CA 92008 (760) 434-2191
Isaac's Catering Casa de Bandini
Lola’s 7-Up Mexican Market & Deli
(Catering Available) *Small Business of the Decade
2051 Palomar Airport Rd. Ste. 175 Carlsbad CA 92011 (760) 931-0267 isaacscatering.com
ADVERTISING SPOTLIGHT
Book a banquet or party with us before October 31, you get a $50 gift card for every $500 spent
16 | WWW.CARLSBAD.ORG
Campaign seeks to attract professionals to the city For those of us who live and work in the City of Carlsbad and appreciate its many treasures, it can be hard to understand why someone would hesitate to move here for a job or business opportunity. But our business community sometimes loses out when trying to recruit talent because a prime candidate may not be certain where Carlsbad is or has doubts about moving to California. The City of Carlsbad believes that its success stories need to be told, and attracting more bright, talented professionals who can enjoy our community’s vibrancy and quality of life is an important goal, so we have developed a talent attraction campaign to benefit our businesses. Our campaign will be branded “Life in Action,” and will highlight that Carlsbad is the perfect mix of exceptional weather, active lifestyle, innovative companies and dedicated professionals. The campaign will emphasize why so many of us are here and why professional prospects should place Carlsbad first on their list of desirable places to work. We really do live a life in action in Carlsbad. We have the ideal climate for running, surfing and bicycling; we are home to four championship golf courses; we have more than 25 beautiful parks and other areas where our kids can play soccer, tennis, softball and basketball; and we have 46 miles of trails where we can unwind after a busy work day. Our consultant, ChandlerThinks, developed the “Life in Action” theme after surveying 300 to 400 local stakeholders to get an idea of the problem. The City of Carlsbad’s Economic Development Division and our consultant have spent several months collaborating with our local business community to fine-tune the campaign, and we’ve received great buy-in. The city will provide materials to our local business community using the “Life In Action” theme, which our businesses can provide to their job candidates. Much of the information addresses concerns that our business community has been hearing, such as that California is too expensive. Our information will point out that the City
CHRISTINA VINCENT
Welcome to Carlsbad and a ‘Life in Action’ CITY NEWS
Economic Development Manager CITY OF CARLSBAD
of Carlsbad compares favorably with many of our competition when all living expenses are taken into account, and the cost of living here can be much less than elsewhere. Our elementary schools are among the best in the country; we have access to six colleges and universities within a 30-mile radius; and we have three airports within a 50-mile radius. Our wonderful city also offers numerous cultural and culinary delights, is a center of the action sports industry, including golf, and is part of the second largest life sciences industry in the nation. All of these help explain why we enjoy an exceptionally high quality of life in Carlsbad. The campaign also is a nod to two of our largest industry clusters, the life sciences and action sports. But the campaign won’t leave out our other strong industry clusters — cleantech; information, communications and technologies; and entertainment and hospitality. We’re disseminating this information through several different formats, including brochures for our local businesses to distribute, and social media. We’ll work with our local businesses and our regional partners, such as the Carlsbad Chamber of Commerce, the San Diego Regional Economic Development Corporation, the San Diego North Economic Development Council, and with other business associations to distribute the “Life in Action” message. People are the most important factor in whether a business succeeds or fails; attracting the right people and employing them in the right positions is pivotal to a business’ success. The city will do its part to attract the talented people who help keep Carlsbad the special place it is.
San Diego’s
New Gateway to the World Carlsbad to LAX 7 Times Daily with Convenient Worldwide Connections
The City of Carlsbad is launching a new talent attraction campaign highlighting what makes Carlsbad a desirable place to live.
GOLFTIP MAXIMIZING Sand Wedge YOUR
User fees vary, Customs Service Available 24 hours for International Flights
Call (877) 848-7766
1 Make sure the ball is in the same position every time in your set-up and never behind the center of your stance on a full swing shot, if it is too far back the ball will generate too much spin and lose its energy climbing upwards or if it is way way back in your stance it may make the “ultra-thin” shot far more likely.
Parking Fee $5 per day “The Landings” Restaurant ......................... (760) 929-0200 Hertz Rent-A-Car ......................................... (800) 654-3131 Avis Rent-A-Car ........................................... (760) 931-1393 Skywest (United Airlines Reservation) ........ (800) 241-6522
2
Keep the face square to your target, don’t open or close it until you are consistent with the face being square to your target. (opening or closing the face may affect the bounce and it could also affect the loft at impact)
www.sdcounty.ca.gov/dpw/airports/airskeds.html
Glaser on Golf Gary Glaser PGA, General Manager The Crossings at Carlsbad SPONSORED BY
3 Don’t choke up and swing harder, use the full length and swing smooth, again, a hard swing make have you generating too much spin which uses up energy climbing upward. Try using these simple methods to get more consistency out of your Sand Wedge from a lie other than the sand. Once you are consistent with your distance then experiment to your heart’s content! As always, good golfing!
Gary
McClellan-Palomar Airport 2192 Palomar Airport Road • Carlsbad, CA 92011 (760) 431-4646 phone • (760) 931-5713 fax
www.thecrossingsatcarlsbad.com
CARLSBAD BUSINESS JOURNAL SEPTEMBER 2013 | 17
Just because some of us are going back to school doesn’t mean the summer fun has ended! Check out these great events happening in Carlsbad Village in September.
Sept. 4 Carlsbad Urgent Care Blood Drive from 2-7 p.m. Donate blood to those in need with Carlsbad Urgent Care, located at 2804 Roosevelt Street.
Sept. 7
ASHLEY WESTMAN
Village fun doesn’t go away with the summer VILLAGE BEAT
Project Manager URBAN PLACE CONSULTING GROUP
Carlsbad Village Family Fun Ride — A full-day event with more than 1,000 participants at Holiday Park and throughout Carlsbad Village. Activities include music, games, expo, bike rodeo, fitness course, and a chance to win one of two BMX bikes. Bring the whole family for a chance to see all the wonderful new bicycle infrastructure throughout the Village.
Sept. 20-22 Carlsbad Music Festival — Did you miss the spectacular Music Walk in June? Friday night, Sept. 20, is your chance to experience the unique sounds of over 20 groups performing 40 free sets in five hours. On Saturday and Sunday, enjoy ticketed performances from incredible artists.
Ongoing: Friday Night Live: through October 25 New bike racks stationed throughout Carlsbad Village make the area more attractive to cyclists. State Street Farmers’ Market: year-round on Wednesdays For more information on these events and others, visit our website at http://carlsbad-village.com.
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Julie Miramontes | Sales | 760.931.8400 | julie@carlsbad.org
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A brief moment of equilibrium may have been met in a classic battle of supply and demand in Carlsbad’s real estate market. As of Aug. 21, 37 percent of the current for-sale single family homes in Carlsbad have had a price reduction from their original listed price. With some price reductions occurring in as little as 10 days. Also, roughly the same percentage of the 94 single family homes currently under contract and in “pending” status in the Sandicor MLS required a price reduction before selling. This is a recent and telling trend in Carlsbad’s real estate market, as only a few months ago, price reductions were less than 15 percent of the active market. Owners and their agents were continually testing higher prices through the spring as market time stayed low and homes sold quickly. Today’s owners are eager to recapture higher, pre-recession pricing and have been emboldened by spring’s robust results. The average single family home in Carlsbad has become much so more expensive. The price reductions is a telling sign that the market is starting to push back. Carlsbad (and other cities in North County) is over 24 percent more expensive today than in January of 2012. The average 2,600 sq.ft single family home in Carlsbad that sold for $630,000 today sells for around $790,000. And they are paying higher average mortgage rates of about 1 percent; the difference between 3.55 percent and today’s 4.5 percent. Mortgage brokers have been advising their borrowers to lock-in a mortgage rate as they find a home, as rates have been making dramatic increases over a short period. An unpredictable and volatile mortgage market makes it difficult for the borrower to plan and maximize the amount borrowed on a loan. With home price appreciation leveling off, it appears that the local market is entering a more traditional slowdown that typically occurs during the fall to winter months. The number of homes for sale is expected build up into in the fall, as home buyers begin to hunker down for the start of the school year. The number of home sales has historically dropped as much as
TYSON LUND
Carlsbad market reaches equilibrium HOUSING TRENDS
$
Broker Associate THE LUND TEAM
30 percent from the summer months. This does not necessarily mean prices will drop, but it may take longer than a few weeks to sell. Homeowners will need to be aware of the market to stay competitive and have success in 2013. Selling strategies may need to change in the face of possible higher mortgage rates or new competition from newly reduced and unsold homes. A recent article in the Wall Street Journal cites a new study out of Wharton that finds buyers use ‘price anchors’ to value property and that over-pricing a property yields better results. Many real estate agents have long advocated pricing a property competitively, even underpricing a home, to get a bidding war started. See Bravo’s new real estate reality show “Bidding War” with LA agent/host Kennon Earl who encourages pricing a property lower than market to generate a frenzy and drive up the final price. In the entertaining pilot episode, one home bidder puts a bid $150,000 over asking-priceand throws in his Porsche to help secure the home. In an appreciating market (as has been the current market), pricing a home higher, setting the price anchor, and waiting out the buyer has been the favored strategy. Seller’s do not want to potentially leave money on the table if the auction-like environment is unsuccessful. But with the market showing signs of a pushback and price corrections on the rise, homeowners may decide to price their home more aggressively to assure themselves a timely sale. And homebuyers should welcome the news that the possibility to buy better this winter is within reach.
GREYHAWK BUSINESS CENTER
Shelly Tinder
(760) 599-6111
HOW TO BUY RIGHT IN TODAY’S MARKET The local market has appreciated significantly over the past 18 months, and has done so with fewer total sales. But higher prices and mortgage rates are causing the market to pull back and create opportunity to buy better in 2013. Here are three quick tips to help you make sure get a great deal this year. 1) Ignore short-sales: Well not completely. But know that short-sales take a long time to complete which put you in unknown territory for where rates might be. Know that banks in today’s market have become wise to the sub-market offers being put in by flippers wanting a deal. Banks are demanding closer-to-market prices for short-sales. While you wait for bank approval, rates may jump up and make that home more expensive. 2) Consider a Remodel: Closing escrow on a project home is not high on the list for many homebuyers. That is good, because
in means less competition from other homebuyers and most likely a better price. Also, new conventional lending programs are allowing homebuyers to put just 5 to 10 percent down, avoid mortgage insurance and put the rest of the would be 20 percent down towards an interior remodel. Fixers are a great way to secure a better price and personalize the property to your taste. Even add sweat equity. Bonus! 3) Stay Patient: It appears the market appreciation is slowing for the moment. This is good and you should welcome the change. Take your time and consider your housing options. Decide on an area you want to live and get prequalified. Although prices have risen quickly, it is not expected for home prices to continue going up. Consider carefully the area and home you are buying, as a home purchase should be a long -term commitment. If you find yourself wanting to speculate for short-term profit, be careful.
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CARLSBAD BUSINESS JOURNAL SEPTEMBER 2013 | 19
RENTALS
$
Business Operations Manager CHAMBERLAIN PROPERTY MANAGEMENT
So you just hung up the phone and the wonderful tenants you’ve had for a few years told you they’re moving. Now the heartburn sets in; it’s time to find new tenants. You’ve done this before, but you can’t seem to escape that nagging worry or sense of uncertainty. Before considering the nitty-gritty best practices for finding a tenant, let’s take a big step back and make sure you have the right philosophical mindset. Having the right mental perspective will save you from many of the mistakes landlords make and help you move forward with confidence and poise. The 3 keys for a healthy mindset when filling your vacancy 1) If you have a mental image of the “ideal tenant”...you’ve got to let it go. Some property owners come to us with a mental image of who the “ideal tenant” would be for their home. In most cases, these images of the “ideal” are against the law. When housing is placed on the open market and decisions are made about who will or will not be selected as a tenant, the process is regulated by very strict fair-housing laws. These laws are intended to ensure a fair market place and violations can result in significant penalties. In reality, the ideal tenant is one who: 1) Moves in shortly after the property becomes vacant so there is no extended vacancy loss. 2) Pays their rent in full and on time.
3) Treats your home with care and respect and does no damage to the property; 4) Causes no issues for concern with the neighbors. None of these four critical factors has anything to do with race, religious beliefs, disability, marital status or any other conditions that fall under fair housing laws. 2) That’s the home I grew up in, don’t change or damage anything! When a home that has special meaning to you becomes a rental, it can be tough emotionally. Remember two key points: You are competing against other rentals. Also, you can’t allow yourself to be anxious about the inevitable wear and tear and even damage that happens in a rental (note that tenants pay to fix damage, but not normal wear and tear—this distinction can get tricky). No matter how careful you are about screening tenants with stellar references, fixtures will be damaged, plants will be trampled and garage doors will be backed into. It happens with the best of people, with the best of intentions. 3) Setting the rent—what you hope it will be vs. what the market dictates Two very important factors to keep in mind when establishing
the rent: Your mortgage payment and other expenses have no bearing on the rental value. In other words, what you hope or need the rent to be, may not be the rent dictated by the market — that is, what comparable properties are renting for at that point in time. Rents are a moving target and fluctuate based on market forces. If you ignore comparables and focus on what you need the rent to be, your vacancy could extend much longer than it should. Vacancy time is money lost that can never be recovered. If you’re pushing for a price that is too high, and allow your home to sit for longer than it should, most of the additional money you were hoping to make over the course of the year’s lease is gone. There is much that can be written about the nuts and bolts of successfully navigating the search for a tenant, but these three points will give you a perspective that will lead to a more successful and less painful process for finding you next tenant. *By no means is this intended to provide a thorough scope of all that is protected under fair-housing laws. Schmidt can be reached at chris@ cpmteam.com
How interest rate increases affect commercial real estate Doing the math on this one is pretty simple. When interest rates rise, your monthly payments will be higher whenever you’re securing new financing… all other things being equal. So while many people have been happy with what has seemed like a better overall real estate market lately, what impact will rising interest rates now have on our overall market conditions? In the housing market, for example, back in May of this year home buyers could get a $450,000 loan for 30 years at 3.4 percent interest, and have monthly payments in the neighborhood of around $2,000. But as interest rates began rising, home buyers became more likely to experience rates in the 4.75 percent to 4.85 percent range, causing them to now only be able to finance a loan of about $380,000, while keeping the same $2,000 monthly payment. When interest rates remain lower, the resulting lower monthly loan payments can increase the amount of money people will be willing to pay for a property. This can also increase the amount of money someone will pay for an investment property when they correlate it to their desired cash-on-cash return from the property. The cash-on-cash return equals the net income minus all of the loan payments, with the result then being divided by the down payment. So when interest rates remain lower the cash-on-cash return remains higher. The good news is that owners who have buildings and available space to rent to businesses may see an increase in the demand for their rental properties. When the companies that were previously interested in buying a building for themselves see what has now happened to overall affordability as a direct result of these higher
MIKE MERRILL
CHRIS SCHMIDT
Three keys for a healthy landlord mindset
COMMERCIAL
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President, LEED-AP MERRILL COMMERCIAL REAL ESTATE, INC.
interest rates, they may decide to rent instead. So we’re now right in the middle of what may be an adjustment period, and within the coming months we’ll see how all of this may affect the real estate market. Since it took so long for interest rates to reverse their trend and finally begin rising, they’ll probably not be falling again in the near future. The likelier trend will be for them to remain within the same range for a while, or continue to rise. With this in mind, it will be wise for borrowers to lock in their interest rates for financing as soon as they can, to ensure that they won’t get caught paying higher rates. In the midst of all of this, people in general are feeling better about the economy. Let’s hope that people continue feeling more positive about the economy, making it easier for everyone to do business. Mike Merrill can be reached at mike@ merrillcre.com
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