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South County uses pro-business attitude to attract companies to area
 
By LAURA MALLGREN
The Daily Transcript
South San Diego County has long been a diamond in the rough. It is a region bounded west by the Pacific Ocean, south by Baja California, Mexico, and east and north by both dense urban areas and rural communities.

Those who love it are fiercely loyal. Many of them are energetically and resolutely chipping away at shedding images mired in decade’s-old stereotypes. Detractors, and there have been many, are starting to become a thing of the past.
This metamorphosis, in part, stems from an increasing interest in doing business in South County, according to the region’s boosters. So much so, that for the first time in the South County Economic Development Council’s 15-year history, it’s in the process of seeking a full-time director.
"We’re there. We’re overdue because we really need it," said Marilyn Lassman, interim deputy director and co-founder of the council. "I think the growth will continue, there’s no question about that. New industries are coming in all the time. The interest is there."
What South County offers is affordable, developable land; proximity to the border; good infrastructure; relatively affordable housing; and perhaps most importantly, local political support, according to Lassman.
"Politically, the climate in South County is very pro-business," she said.
The community benefits from an "absolutely outstanding" small business and international trade center at Southwestern College in Chula Vista, Lassman said.
One project the SCEDC has been working on with partners in Mexico for several years is a trans-border terminal that would link the United States with Tijuana International Airport.
At this time, passengers and cargo must cross the international border at either the San Ysidro or Otay Mesa ports of entry. The trans-border would be roughly between them and would include customs and Homeland Security, Lassman said. How soon it comes on line is unclear.
"A couple years ago I would have told you fast, but now with all the changes with homeland security," it’s an unknown, she said.
The council has been able to offer incentives to certain kinds of businesses by administrating federal low-interest loans, helping them to grow and hire more employees.
Knight & Carver Yacht Center, a marine facility in National City, received such a loan through the council a few years ago and was able to hire more than 100 people, said Lassman. The company designs, engineers, manufactures and repairs vessels for private and commercial use. It also specializes in the manufacture and repair of wind turbine blades.
In addition, McCune Motors will be hiring 55 new employees at a new location in National City, as the result of a loan administered by SCEDC, she said.
"That’s the whole purpose of this, to generate jobs in the community," she said.
This interest in doing business in the region will be complemented or even enhanced by the formation of an urban development corporation, or a public-private nonprofit organization, according to Chris Lewis, chairman of the Chula Vista Urban Development Committee.
The concept is modeled after the Centre City Development Corp. in the city of San Diego.
It’s a more focused approach to redevelopment that produces a good revenue stream for the city, he said.
"It really works," said Lewis, a McMillin Co. branch manager for realty in Otay Mesa. "The city winds up making money over time with redevelopment." The city of San Diego has made millions of dollars from related redevelopment efforts.
A group of business people have been meeting to discuss creating the urban development organization for about 15 months. A report of the enterprise has been submitted to the city.
"Council members, as a rule, support this," said Lewis, emphasizing that if adopted, the whole region would benefit.
Not everyone sees business prospects in the South County in the same light, however. Hans Ganz, president and CEO of Chula Vista-based Pacific Trust Bank, said he thinks any business growth mainly will be in the service industry and border crossing-related businesses.
"I don’t see any big manufacturing coming online in South County," he said.
Rohr, which was the largest employer in the area for decades, hit the skids in the early 1990s when the aerospace industry slumped. At one point, it employed up to 15,000 employees, Ganz said.
"It’s been a huge adjustment," he said. "A lot of well-paid blue collar workers lost their jobs in the process. It wasn’t pretty."
BF Goodrich subsequently acquired Rohr. "It’s still a large employer, but not as dominant as it was 10 or 15 years ago," he said.
Ganz described South County as basically a sleeping community. "A lot of them work north of (Interstate) 8 either downtown or in Sorrento Valley," he said. "That’s where the big employment centers are."
Growth has occurred primarily in eastern Chula Vista, where developable land is being converted to thousands of residential neighborhoods.
"They’re selling houses like hotcakes out there," Ganz said. "It’s probably one of the fastest growing cities in the nation. Most people that live out there either work in Tijuana or north of 8. If you look at the traffic patterns, you see that’s where they’re going. I think with the big exception being BF Goodrich in Chula Vista, everything else in South County is service industry, retail stores or has to do with maquiladoras down in Tijuana."
Ganz noted, however, that many moving to eastern Chula Vista are affluent. "It probably has to do with the fact that it’s still cheaper than Rancho Bernardo or anywhere else, with the exception of Temecula."
Retail space in EastLake is commanding prices as high as or higher than in central or northern San Diego, according to Ganz. "Retail space is being leased in excess of $3 a square foot triple net," he said. "That’s a pretty high price for retail space in the South Bay."
South County cities and communities differ from North and East counties in that there is a higher Spanish-speaking population. "I think it has the lion’s share of people who work in Tijuana in maquiladoras or have their own business there," Ganz said.
Big changes are in store for Chula Vista’s bayfront, in terms of potential residential, hotel, commercial and entertainment venue development, and National City’s marina, where an aquatic center is planned.
Among large employers in the South County are the Sweetwater Union High School District, Sharp Chula Vista Medical Center, Scripps Memorial Hospital Chula Vista and National City’s Paradise Valley Hospital, according to Lassman. The U.S. Navy is one of the biggest employers. BF Goodrich and Pasha Services, a company that processes vehicles in National City’s port, are others.
Government, school districts and the retail industry also provide a high number of jobs in the South County.
Chula Vista’s EastLake Business Park is or soon will be home for international high-tech electronics companies.
Hitachi Home Electronics (America) Inc., the third high-tech electronics company to locate in Chula Vista, is building its American headquarters at the EastLake Business Park.
DNP Electronics America LLC, a high-tech subsidiary of Dai Nippon Printing Co. Ltd. (OTC: DNPCY), and the Leviton Manufacturing Co. are other high-tech electronics tenants in the business park.
The city of Chula Vista hopes to attract a university to the eastern part of the city, where land has been designated for such a use. The city of National City has partnered with San Diego State University and the Sweetwater Union High School District in plans for higher education opportunities to be offered a hop, skip and jump from its civic center.



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