Davis Leaves Phase One, a Company He Founded

Steven L. Davis, founder and president of Phase One Development, left the company Wednesday to “pursue other business interests,” according to Tammy Smith, a spokeswoman for Pacific Diversified Capital, the San Diego Gas & Electric subsidiary that acquired Phase One in 1986.

It was not clear on Wednesday how Davis’ departure would affect the future of Phase One, the largest of several unregulated, non-utility businesses owned by PDC. Those companies are expected to generate 10% of SDG&E;’s net income by 1991 and 25% of its net income by 1996.

PDC “is evaluating the future needs of Phase One Development and their involvement in the real estate business,” Smith said. The SDG&E; subsidiary also is “looking at reducing the overhead at Phase One Development.”

That evaluation already has included some layoffs, according to sources familiar with the company. Phase One has about 20 employees, but Smith was unable to confirm or deny any layoffs.

Phase One is best known in San Diego for its ownership stake in Belmont Park Associates, the partnership that is developing a controversial shopping center next to the Giant Dipper roller coaster in Mission Beach.

Phase One also has developed buildings in Sorrento Valley, Claremont Mesa and in various parts of Colorado. Before being acquired by SDG&E;’s PDC subsidiary, Phase One had developed about 2 million square feet of commercial and residential real estate projects.

Even though Davis has left the company, he will “continue to represent Phase One Development in its ownership position in Belmont Park Associates,” Smith said.

Eric Gossett, Phase One’s executive vice president, also left the company on Wednesday, according to Smith.