Pacific Premier... Were Repurchased Under That Pro- Two Weeks For
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California State University, San Bernardino CSUSB ScholarWorks Inland Empire Business Journal Special Collections & University Archives 7-2012 July 2012 Inland Empire Business Journal Follow this and additional works at: https://scholarworks.lib.csusb.edu/iebusinessjournal Part of the Business Commons Recommended Citation Inland Empire Business Journal, "July 2012" (2012). Inland Empire Business Journal. 222. https://scholarworks.lib.csusb.edu/iebusinessjournal/222 This Article is brought to you for free and open access by the Special Collections & University Archives at CSUSB ScholarWorks. It has been accepted for inclusion in Inland Empire Business Journal by an authorized administrator of CSUSB ScholarWorks. For more information, please contact [email protected]. VOLUME 24, NUMBER 7 $2.00 July 2012 www.busjournal.com AT DEADLINE Blue Shield of California Sued Special for Pushing Policyholders Into Eadie and Payne Sections Bare Bones Coverage and 8 “Be-Attitudes” Financing your Encourages Small of Holding Business with Business Owners to Hiking Premiums People the SBA’s Help Check out Blue Shield’s Illegal Practice Causes “Death Spiral” Accountable Tax Credits for 2012 Blue Shield has used enormous rate hikes, and the threat of rate Business owners are always increases, to force patients into lower-benefit and higher-deductible Pg. 9 Pg. 21 on the look-out for ways to min- imize their tax liabilities. Eadie SUMMER 2012 AND and Payne, LLP (E+P) is always on hand to help them take health coverage in violation of state law, according to a class action BEACH EATERIES advantage of available tax lawsuit filed by Blue Shield policyholders and consumer advocates. incentives. Frank Zabaleta, CPA The lawsuit alleges that Blue Shield is illegally gaming the health and tax partner at E+P, advises insurance system by alternately closing older policies and opening small business owners to check new ones in order to push older, sicker consumers who are more out three key credits that could expensive to insure into lower benefit, higher deductible coverage provide significant tax benefits that requires consumers to pay more out of pocket. during 2012. The lawsuit seeks to stop Blue Shield from shoving its policy- holders into what is known as a “Death Spiral”–the industry term for Expanded Tax Credit for what happens when a health insurer “closes” certain insurance poli- Hiring Veterans cies to new customers, and later raises rates to those remaining in the A law change enacted late closed policy until those enrollees can no longer afford coverage. Pg. 34 last year now provides an Since consumers with preexisting conditions cannot switch to a com- expanded tax credit to employ- parable or better policy, consumers trapped in the closed policies Pacific Premier ers that hire eligible unem- must either accept greatly inferior coverage or face bigger and bigger Bancorp, Inc. ployed veterans. The credit can premium increases. be as high as $9,600 per quali- “Blue Shield closed my family’s policy and then threatened us Announces Additional fied veteran for for-profit with a 23 percent premium increase. We had no choice but to switch Stock Repurchase Plan employers or up to $6,240 for to the only bare-bones policy Blue continued on page 15 tax-exempt organizations. The Pacific Premier Bancorp, amount of the credit depends on Inc. (NASDAQ: PPBI) (the a number of factors, including CSUSB to add Inland Empire “Company”), the holding com- the length of the veteran’s pany of Pacific Premier Bank, unemployment before hire, Business Journal archives to collection announced that its board of hours a veteran works and the By Andrew Edwards, Staff Writer directors has approved its sec- amount of first-year wages paid. ond stock repurchase program. Employers who hire veterans The Inland Empire Business Under the new repurchase pro- continued on page 8 Journal will donate its entire gram, management is authorized archive, and future issues, to be to repurchase up to 1,000,000 MAIL TO: digitized and stored as a part of Cal shares, or approximately 9.7%, State San Bernardino’s special col- of the 10.3 million outstanding lection. shares of the Company’s com- “Every month, they’re going to mon stock. The program may be add a new one. As long as it’s limited or terminated at any time around and as long as Cal State San without prior notice. The new Bernardino is standing. Our life’s program is intended to replace Dean Cesar Caballero (standing) work is going to be there for and supersede the Company’s oversees CA State University, San years,” Inland Empire Business original repurchase program, Bernardino’s President Al Karnig Journal Publisher Bill Anthony which was approved in February (r) and Inland Empire Business said. Permit No. 1 Ontario, CA 2007 and authorized the repur- Journal Publisher William “I may be wrong, but I think it’s chase of up to 600,000 shares of Anthony (l) signing the library one hell of an honor,” he said. the Company’s common stock. agreement document continued on page 24 continued on page 24 BUSINESS JOURNAL • PAGE 2 July 2012 July 2012 BUSINESS JOURNAL • PAGE 3 REALREAL ESTESTAATETE NOTESNOTES MORENO VALLEY RETAIL PROPERTY PURCHASED FOR $71/SF A private investor paid $5.7 million for Plaza Del Sol, an 80.2k sf ($71/sf) retail property located in Moreno Valley. Plaza Del Sol is Two Weeks for Half a Budget: located at 23080 Alessandro Boulevard, east of I-215 and adjacent to Frederick Street. The property was marketed as a value-add opportu- Worth the Wait? nity for an investor where substantial upside can be achieved through Almost two weeks ago, the Legislature met the requirements of additional leasing in the center beyond its current occupancy level of voter-approved Proposition 25, which prevents the forfeiture of pay 48 percent. for lawmakers if a budget is approved on a simple majority vote. Alan Krueger, senior vice president investments, and Trevor When voters approved Proposition 25, they did so under the impres- Roberts, associate, in Marcus & Millichap’s Ontario office, repre- sion that the Legislature would be required to pass a truly balanced sented the seller, a private investor. The buyer was also repped by budget in order to still collect their paychecks. However, a court rul- Krueger. ing declared that the Legislature can determine itself whether a budg- et is balanced, regardless of whether it is in reality. INDIO MULTIFAMILY PROPERTY GOES FOR OVER The main budget bill, along with six other measures, sat on the $12 MILLION Governor’s desk for 12 days. However, almost two dozen bills in The Andorra apartments, a 186-unit multifamily property located total were required to fully enact the $91.3 billion state budget. at 81720 Avenue 46 in Indio, sold for $12.025 million ($64.7k/unit). While the Governor and Democrat leaders spent almost two weeks The property generated 15 offers and was ultimately sold to an all- negotiating behind closed doors on the full budget package, cash buyer. California Budget Fact Check asks: was the delay worth the wait? Andorra, built in 1987, features all two-bedroom / two-bath units Instead of reversing the Governor’s harmful trigger cuts which averaging about 1.1k square feet in size. Community amenities aim 99 percent of reductions at our classrooms, the Democrats’ include three swimming pools, four spas, a recreation room, and a fit- largest budget sticking points focused on increased welfare spending. ness center. An analysis by California Budget Fact Check found that this year’s Andorra is located close to public transportation, shopping, budget: schools, and services. The Indio Fashion Mall is close by, with major employers within a short commute of the property. Highway 111 is • Adopts the Governor’s full $5.9 billion in education cuts but just a block away, and the 10 Freeway is just minutes to the north. spares welfare programs from trigger cuts: The majority-vote budg- The buyer, ROC | Bridge Partners, plans to renovate and then et adopted the Governor’s trigger cuts which target schools for 99% place long-term financing on the asset. Alex Mogharebi of the of the trigger cuts. They rejected both the Legislative Analyst’s pro- Ontario office of Hendricks & Partners represented the seller, The posal and the Republican proposal to protect education funding. An Situs Companies. analysis by California Budget Fact check found that only $1.2 billion in reductions are permanent, the rest are funding shifts or one-time in THE SAYWITZ COMPANY CLOSES TWO LEASES IN nature. Over $7 billion of the budget solutions are really funding THE INLAND EMPIRE TOTALING 213,000 SQUARE FEET shifts, deferrals and other budget gimmicks that do not reduce fund- The Saywitz Company—one of the largest privately held com- ing. mercial real estate brokerage firms in Southern California – recently • Welfare recipients protected: Governor Brown proposed negotiated two leases located in Ontario totaling more than 213,000 ending the exemption from welfare-to-work requirement by requir- square feet. ing recipients to take job training classes. Getting people back to The Saywitz Company recently represented Pacific Urethanes work not only saves taxpayers but helps to grow our economy. The and Precision Foam in securing new facilities for the company’s west proposal adopted exempts welfare recipients from the work require- coast operations. Pacific Urethanes is a privately held poly ment for the next two years. Democrats adopted some reforms but urethane/resin manufacturer which produces foam for the bedding unfortunately they will not affect welfare recipient eligibility until industry. The new facilities, located at 1671 Champagne Avenue in 2014. Additionally, the proposal mandates that 20% of recipients Ontario will house manufacturing, warehousing and distribution for shall be exempted from the new requirements.