Category: Top Stories

1,000-plus new jobs coming to Stockton, Tracy

Two new employers are coming to San Joaquin County, each promising 500 or more well-paying jobs to a region with an unemployment rate that is 1 percentage higher than the state average.

The city of Tracy on Thursday announced that Katerra, a Menlo Park-based firm, will open a 577,000-square-foot manufacturing facility in the first half of 2019. The building is under construction.

Katerra plans to open a high-tech factory that will produce building components including wall panels, floor systems, windows and cabinets.

Downtown Stockton, meanwhile, is the intended home for ConSol USA, a new firm that founder Robert Tibbs said will focus on developing artificial-intelligence technology to be used in the medical and financial sectors.

Of special note concerning ConSol USA is its planned workforce. Tibbs, 63, said he intends to provide jobs to young people from Stockton, giving them opportunities to begin in entry-level positions that will lead to living-wage careers with the company.

“We really have to demonstrate we’re committed to the (geographic) areas that really have the most needs,” said Tibbs, who added that he escaped an impoverished childhood to become a lifelong entrepreneur.

“It’s about zeroing in on communities like Stockton and putting our money where our mouth is. There are thousands of people in the Stockton area that have as much talent, intellect and energy as do I. It’s about giving them an opportunity.”

The ConSol USA plan was announced Thursday at a news conference featuring Mayor Michael Tubbs, the University of the Pacific and Valley Vision, a Sacramento-based nonprofit organization.

The main purpose of the news conference was to publicly release a “workforce development action plan” for Stockton produced with private funds. The 30-page plan offers a road map intended to bring better-paying jobs to Stockton while developing a better-prepared workforce to fill those positions.

“We want to build a future here in Stockton,” Tubbs said. “If we continue the status quo, we will continue to grow low-wage jobs. This report outlines our challenges but it also shows that with the right focus, we can set Stockton on a path toward economic prosperity.”

According to government data, Stockton’s 6.3 percent unemployment rate at the end of May was 2.1 percentage points higher than the state’s jobless rate of 4.2 percent. San Joaquin County’s unemployment rate in the same government report was 5.3 percent. Tracy’s was 3.4 percent.

At roughly the same time as the Stockton announcement, Tracy Mayor Robert Rickman spoke optimistically about the new jobs Katerra will bring to the region beginning next year.

“Tracy’s proximity to workforce talent, affordable land and state-of-the-art building opportunities provide a business-supportive environment for advanced manufacturing companies such as Katerra to thrive,” Rickman said.

Tibbs said he hopes to have a more detailed announcement of ConSol USA’s plan within two months.

http://www.recordnet.com/news/20180712/1000-plus-new-jobs-coming-to-stockton-tracy

Hanford gives preliminary OK to Faraday

 

  • City issues a temporary certificate of occupancy
  • “Building my dream … that will change the way people view transportation”

Hanford has approved a temporary certificate of occupancy for the factory that is to make the all-electric Faraday Future vehicles.

Faraday expects its model FF 91 to start rolling off the Hanford assembly line by the end of the year. The lease for the 1-million square foot site was signed in August 2017, with major cleanup and infrastructural preparation continuing through the first part of last month when the building permit was given and the contractor signed to lead the construction project.

The TCO is the first step in final approval required from a municipality’s building and safety inspectors before a new occupant can fully take over a site or structure, move in, and start their intended activities full-time as a running business.

“This first TCO, specifically allowing ramp-up for assembly of our FF 91 prototypes in the most finished part of the Hanford site, is a real step forward,” says Faraday Senior VP of Manufacturing Dag Reckhorn.

“The Hanford location is ideal for both Southern California and the San Francisco Bay Area for deliveries, among other benefits,” says Faraday Future Founder and Global CEO Y.T. Jia. “It is exciting for me as an entrepreneur to begin with this small step in building my dream of creating the next-generation mobility products that will change the way people view transportation.”

FF Hanford is applying for the Conditional Certificate of  Occupancy (CCO), and then the final Certificate of Occupancy (COO) for the first FF 91s. The Hanford plant is expected to create between 1,000 and 1,300 new jobs in the Central Valley when it reaches full operating capacity, the company says.

The company says its FF 91 is an all-purpose fully-connected EV with an estimated 0-60 mph acceleration of under three seconds and an expected range of 300+ miles.

http://files.constantcontact.com/2cb20f61601/86dab1c4-e674-483b-8cfe-b766d6d48fef.pdf

California Trade Report for May 2018

Below are highlights from the recently released trade data from the US Census Bureau and US Bureau of Economic Analysis. To view additional data and analysis related to the California economy visit our website at www.centerforjobs.org/ca.

Share of Goods Through US Ports
18.4%
CA Share of Total Trade
Through US Ports

Total US goods trade (exports and imports) through California ports edged down to 18.40% (12 month moving average; compared to 18.44% in Apr 2018 and 18.43% in May 2017).

California remained the #1 state, ahead of Texas with 17.07% (compared to 16.99% in Apr 2018 and 16.61% in May 2017). Trade through the Atlantic port states was at 29.47% (compared to 29.44% in Apr 2018 and 29.7% in May 2017).

The state’s continued lead in this area forms the trade-related base for one of California’s largest centers of middle-class, blue-collar jobs. Transportation & Warehousing alone provided 579,800 jobs in May (up from 559,000 in May 2017), paying an average annual salary of $54.5k. This employment base in turn supports additional blue-collar and white-collar jobs in a range of other industries.

California Goods Exports Increase
$1.7
Billion in Exports

Total California goods exports were up $1.7 billion from May 2017 (up 12.6%). California remained in 2nd place with 11.03% of all US goods exports (12 month moving total), behind Texas at 17.74%.

California’s Balance of Goods Trade
-$22.1
Billions of Goods Trade

California’s balance of goods trade through state businesses narrowed to -$22.1 billion, compared to a level of -$23.7 billion in May 2017. California trade accounted for 31% of the US trade deficit in goods in May 2018.

Top 10 Exports, May 2018
Top 10 exports by value are shown below, along with the change from May 2017.

By shipping weight (vessel and air total), the leading export was Petroleum & Coal Products at 1.1 billion kg (35% of total exports), followed by Waste And Scrap at 0.9 billion kg (29%), and Food & Kindred Products at 0.3 billion kg (9%).

Image Alt

Top 10 Export Markets, May 2018
Image Alt

Closer Look: California’s Trade With China
China and Hong Kong combined accounted for about 16% of the exports originating in the state (produced here or bundled for export here) in both 2017 and 2018 (for the 12 months ending in May in both years), while countries with which US has trade agreements (including NAFTA) accounted for about 41% in 2018, up slightly from 39% in 2017.  Overall exports to China and Hong Kong grew only 2.2% in the last 12 months, compared to 10.1% growth for all Trade Agreement Partners combined.
Image Alt
By value, Top 12 Exports to China & Hong Kong for the 12 months ending May 2018 are shown below.
Image Alt

http://cbrtcfj.cmail20.com/t/ViewEmail/j/C95DAAF4183765B92540EF23F30FEDED/70DD5D838DBEFE94DCC9454293137CA2

Central Valley may buck California’s economic decline

 

  • Economists say state’s economic growth to slow
  • “Attitudes and policies are friendlier to development and growth” in the Central Valley

Central Valley Business Times

June 21, 2018

 

The California economy appears to be sidelined while the broader U.S. economy is accelerating, according to a new report released Wednesday by the California Lutheran University Center for Economic Research and Forecasting.

Its current forecast anticipates annual growth in California’s real GDP of 3.2 percent in 2018 and 2.7 percent in 2019. At the current growth premium could vanish within the forecast horizon, the report says.

But Central Valley growth has picked up to the point of being greater than the state’s growth in 12 of the past 13 months and is increasing at a rate substantially faster than the nation.

“Attitudes and policies are friendlier to development and growth” in the Central Valley, the report says. The economic outlook for the nation continues to be strong relative to the pre-corporate tax reform environment. “We expect growth of the U.S. economy to average 2.7 percent in both 2018 and 2019, better than all but one year since the Great Recession,” says the report.

“We view the unemployment rate as a flawed measure of labor market strength,” the report says. “The civilian labor force participation rate stands at a low not seen since 1978.

Crisis era policies that continue to unincentivize work nearly a decade after the financial crisis have driven millions of working-age  Americans out of productive economic activity. The U.S. economy cannot return to robust economic growth as long as vast amounts of human capital remain on the sidelines of the economy.”

The March 2018 forecast marked what appeared to be a turning point in the economic outlook for California. “In March, we wrote: ‘We are currently forecasting a convergence in the economic fortunes of California and the nation. While California has historically grown at a rate that is significantly higher than the nation’s, 2017 may have marked a turning point…. While growth was accelerating around the country, it appeared to slow down in California. We are forecasting that this dynamic continues in the years ahead. It is even possible that the growth premium maintained by California may vanish altogether,” writes economist Matthew Fienup.

Because California competes with other regions for the opportunity to host high value-added business activity, other regions can develop a competitive advantage by cultivating pro- business policies, says the CERF report.

“Eventually, businesses of many different kinds will begin migrating to these favorable environments,” it predicts. “Early evidence of this dynamic was provided by California’s world-renowned movie industry — or should we say, Georgia’s world-renowned movie industry,” Mr. Fineup writes.

“So much production in the movie business has already fled California in search of lower-cost regions that California now ranks behind the UK, Canada, and current industry leader Georgia. The exodus of jobs and output in this iconic California industry is actually part of an economy-wide exodus that has accelerated in recent years.”

The apparent slow-down of California’s economy noted in the March publication coincides with a significant increase in net domestic out-migration, the report says.

“Households and individuals, dominated by younger, working age adults, are fleeing California in increasing numbers. In March, the coincidence of these two patterns led us to wonder if the convergence that we have been anticipating between California’s economy and the nation’s might finally be imminent.

“With the advent of this forecast publication, the situation seems a little different than what we observed last quarter, although the fundamental story is unchanged. Most notably, there has been a significant upward revision to California’s growth number for 2017.

The initial estimate of 2.7 percent growth in real GDP has been revised upward to nearly 3.0 percent. That is to say, economic growth was flat between 2016 and 2017, rather than decreasing as we previously thought.”

Even with the revisions, the CERF economists say that the slowdown of California’s economy relative to the nations is real. “We have repeatedly described housing markets in the United States and California as one characterized by restricted supply.

Not only are housing starts low as economic expansions go, but they are lower in this expansion than they were in previous recessions,” writes CERF economist Dan Hamilton.

While housing sales have risen from the depths of the recession, they are still relatively low, although not as dismal as housing starts. This is due to two main reasons: weak job growth and sustained price growth.

“To be clear, we are not saying this price growth represents another housing bubble. Price growth appears to be due to fundamentally low supply,” he says.

Valley employers need mechanics; people need jobs. How this program serves both

BY KEN CARLSON

June 19, 2018 03:26 PM

Opportunity Stanislaus and its industry partners created the VOLT Institute for adults like Gustavo Amezcua of Oakdale.

Amezcua, 27, worked as an operator for Rizo Lopez Foods before the company gave him the chance to become a maintenance mechanic at the McClure Road cheese-making plant.

It’s a prime opportunity for Amezcua to earn a larger income for supporting his young family. On average, industrial maintenance mechanics earn $27.80 an hour in Stanislaus County.

Local industries struggle to find qualified maintenance mechanics and the demand for those blue-collar jobs is forecast to increase 15 percent over the next six years.

Amezcua is among 30 students in the first graduating class at the VOLT Institute, launched in October by Opportunity Stanislaus, industry partners like Pacific Southwest Container and E&J Gallo Winery, and the Stanislaus County Office of Education.

In 2016, SCOE offered space for the trade school in the former Modesto Bee building, at 13th and H streets, which was purchased by SCOE for expanding its services.

Dave White, chief executive officer of the business development agency, Opportunity Stanislaus, said there are 200 unfilled positions for maintenance mechanics in the county. With economic growth, those workers are in short supply as veteran mechanics retire and fewer high school students are trained for vocations.

As the VOLT Institute is further developed, it’s also expected to provide training in electrical systems and maintenance of automated production equipment. The program is supported by major employers in the county that face a critical need for skilled mechanics to maintain equipment and keep production lines running.

“The typical students in our program are in their 30s and looking for a better job,” White said. “There are a lot of people who have a job, but it’s not a good job, not a living wage and the chances of going to college has passed them by.”

Of the 40 students who enrolled in the VOLT Institute last fall, three quarters were in the 18 to 35 age group. Some were “incumbents” or employees of local companies that want them to upgrade their skills; others were young adults with lower-wage jobs, jobless people referred by county Workforce Development, and SCOE adult education graduates.

The group included a teacher looking for a career change.

Though a high school diploma is a minimum requirement for the VOLT institute, 52 percent of the students had attended some college and 9 percent were college graduates.

Deborah Rowe, director of career training programs for SCOE, said last week that 10 students dropped out for personal reasons or discovered the mechanics’ vocation was not for them. Twenty-six of the students set for a graduation ceremony June 27 are employed and the other four are actively seeking jobs, Rowe said.

Ron Losinski, master instructor at VOLT, said he’s well aware of the need for mechanics and other technical positions at manufacturing plants in the Northern San Joaquin Valley. When he was a maintenance manager for a plant in Lathrop, he said, it was impossible to hire qualified people off the streets.

He said plant closures were an opportunity to snatch up skilled workers and some employees were trained in an apprenticeship program at Modesto Junior College.

At the VOLT Institute, trainees first take a three-week course (12 hours a week) to learn the soft skills of working in the manufacturing environment, including ethics, communication, resolving conflicts, decision making and public speaking.

They advance to mechanical courses offered in the morning, afternoon or evening, where they learn the basics of machine tools, mechanical drives, pumps, pneumatic and hydraulic systems, metal working, torching techniques and mechanical circuitry.

The students can complete the vocational training and be job-ready in eight months.

Students in an afternoon class last week spent an hour on computers absorbing concepts, followed by an hour or two of hands-on learning at training equipment stations.

“Quite a few of our students have no mechanical experience,” Rowe said. “We try to team them up with incumbents who have mechanical skills.”

Cameron Jones and a Crystal Creamery employee were tested at one station on regulating the actuating speeds of a mechanical system. Jones has been working for a shoe business at Vintage Faire Mall and heard about the Volt Institute from a friend, he said.

“I like some of their shoes but don’t get enough hours to buy them,” said Jones, who is close to completing the training and is applying for jobs.

Dan Martin, director of facility services at Doctors Medical Center in Modesto, said he’s hired two students from VOLT’s inaugural class to maintain motors and pumps in the hospital, wire lights and handle repairs.

“It’s a wonderful opportunity for the community because we have such a decline in individuals that have the proper skills for doing maintenance-type work,” said Martin, who’s on the advisory board for VOLT. “We will interview and interview many times just to get a few people who are qualified.”

Martin said the new hires will start at entry level pay for mechanical positions and soon jump to higher levels when they learn the health care side of the business.

As for VOLT’s minimum requirements, the new students must be at least 18 years old, have a high school diploma and complete the WorkKeys Assessment that measures skills for success in the workplace. Trainees must have the reading skills to understand manuals.

Tuition for the maintenance mechanic program is $2,500 per quarter or a total of $7,500. Companies sending employees through the training program may cover all or part of the cost. Self-pay students may be eligible for loans or scholarships and assistance may be available for students coming from adult education or the county workforce development program.

The VOLT Institute was launched with a $700,000 investment from private sources. Rowe said the funding that SCOE receives for the program requires six-month and 12-month reviews on how the graduates perform.

Rowe said the former Bee building is taking shape as a career center also offering training in construction, health care and other industries.

When she was principal of Enochs High School, Rowe said, 45 percent of the 550 students in a graduating class would attend college and not all of them would finish with a four-year degree. The military was always an option, but a large number of graduates were faced with earning a living wage without a college degree.

“I want to work for those who are not going to college and not going to the military,” Rowe said. “College is great but we are leaving a lot of folks behind.”

Those interested in training at the VOLT Institute may call 209-566-9102 or send an email to info@voltinstitute.com. For more information on programs, visit http://opportunitystanislaus.com/VOLTInstitute.

http://www.modbee.com/news/business/employment-news/article213140454.html

Fresno State expands business school

 

Central Valley Business Times

June 1, 2018

  • To break ground on Ruiz Foods Executive Classrooms
  • “Vastly improves its ability to offer transformative educational experiences”

The Craig School of Business at Fresno State will host a public groundbreaking for its Ruiz Foods Executive Classrooms that will soon be constructed with stadium seating and the latest technology.

The celebration will be held at 9 a.m. on Thursday, June 7, on the north lawn in front of Duncan Patio. The Ruiz Foods Executive Classrooms are the result of a $1 million pledge made in May 2017 by Ruiz Food Products Inc., a Dinuba-based food manufacturing company.

The gift will help finance construction of an annex to the existing University Business Center and house two new executive classrooms with innovative education technology. “With two new executive-style classrooms, the Craig School of Business vastly improves its ability to offer transformative educational experiences,” says Robert Harper, interim provost and vice president for Academic Affairs.

“While the classrooms will be used for our executive MBA program and accelerated bachelor’s program, they will also serve as vital spaces for other students within the university as well.”

The Ruiz family has a history of supporting business education at Fresno State. Entrepreneur Fred Ruiz is a founder of the Institute for Family Business, a community resource that promotes family businesses as a catalyst for economic growth. Kim Ruiz Beck, chairman of Ruiz Foods, is an alumna of the Craig School and serves on the Foundation Board of Governors for the California State University, Fresno Foundation. In 2017, she earned the Top Dog Distinguished Alumna Award from the Fresno State Alumni Association.

The classrooms will be designed to replicate what executives would expect, allowing for faculty to fully utilize technology in presentations to improve learning outcomes for undergraduate, MBA and executive MBA students. The added space will also serve the community. When not in use for academic purposes, the space will be available for rental as part of the slate of services provided by the University Business Center. Mr. Harper says the anticipated completion date for the project is summer 2019.

Amgen tour launches from Stockton

The Stockton Arena was abuzz with activity on May 17, as cycling enthusiasts and local businesses alike gathered to attend the start of stage 5 of the 2018 Amgen Tour of California, a 109.7-mile journey from Stockton to Elk Grove.

The course is relatively flat with only one major change of elevation, allowing the sprinters among the contestants to shine. “This is a tailor-made sprint stage for the sprinters, and they have been raring to go,” noted announcer Brian Stover.

The Amgen Tour of California is an annual business boon to host cities throughout the Central Valley. Tourism revenue is bolstered by cycling fans following the tour throughout the state. In addition, each stop along the way is an opportunity for local businesses to have booths at the event. This is the second time Stockton has hosted the start of the event, the last time being in 2007.  Modesto and Lodi have also been frequented by the Amgen Tour of California in recent years.

Nonprofit booths made a strong showing at this year’s Stockton start to stage 5.

“One of the things I’ve encouraged the staff to do is to be involved in events like this, bring out some of the food we have … so they can see we’re actually providing healthy, nutritious, good food to those who really need it,” said Rick Brewer, CEO of the Emergency Food Bank. “Sometimes people will come by and throw a dollar in our [donation] box too, so we’ll get a couple donations.”

Amgen tour launches from Stockton

California’s economy now globe’s 5th largest

California was in a bragging mode last week because the state’s economy has climbed in global rankings to 5th place behind only the United States as whole, China, Japan and Germany.

It’s a remarkable factoid, certainly, that one American state generated so much economic production – $2.7 trillion last year – that it could rank among global leaders.

It’s even more impressive that California produces so much even though in terms of population, its 40 million residents would be considered a fairly small country, about the size of Iraq.

California moved into 5th place by slipping past Great Britain, which has 63.5 million people, after previously topping France (65 million) and Italy (61 million).

Even more dramatically, California outproduced Russia (142.5 million) and even India, which has 32 times as many people (1.3 billion).

Okay, so it is something about which Californians should feel proud. It might even fuel those semi-serious efforts to separate California from the rest of the nation and restore the nationhood it briefly had in the 19th century.

However, it’s just as important to keep the new economic rankings in perspective, to wit:

—We’ve been there before. As the state Department of Finance points out, we were 5th in 2002, only to decline as the Great Recession struck a few years later, and we were in 10th place as recently as 2012.

—While the state’s economic output increased by 3 percent in 2017, the economies of five other states grew faster, topped by Washington at 4.4 percent, according to a new report by the federal Bureau of Economic Analysis. Others with larger increases than California were Nevada, Arizona, Utah and Colorado.

—The BEA report also underscored the narrowness of California’s economic growth of late. The big drivers, the agency reported, were the high-technology and health care sectors.

—Health care growth has been fueled by huge injections of federal Obamacare funds, primarily for expansion of Medi-Cal, the state’s medical program for the poor, to about 14 million Californians, more than a third of the state’s population. Obamacare is, however, under assault in Washington and its future is cloudy.

—California’s technology industry is concentrated in the San Francisco Bay Area and its explosive growth has come with high levels of transportation congestion and housing shortages and costs that threaten its future.

—The high cost of housing, born of an acute shortfall in new construction, is the primary reason why California, for all of its economic power, has the nation’s highest rate of poverty, according to the U.S. Census Bureau’s “supplemental” poverty calculation that takes living costs into account.

—The Public Policy Institute of California, expanding on the Census Bureau methodology, says that nearly 40 percent of Californians are living in poverty or near-poverty, with the highest rates in Los Angeles County, home to a quarter of the state’s population.

—Finally, California is, as Gov. Jerry Brown continues to warn, overdue for an economic downturn. It’s the economic version of Newton’s Law. What goes up must inevitably come down, as we have seen several times in the recent past.

California’s economy now globe’s 5th largest

$8.4 billion realty deal includes 29 Northern California properties

Images from the Prologis web site and from a DCT Industrial Trust earnings
supplement, in a montage. Prologis, a huge player in the industrial real
estate market, has struck a deal worth $8.4 billion to buy DCT Industrial
Trust, a major company in the same sector, in a transaction that includes
dozens of Northern California properties.

Prologis, DCT Industrial Trust
Prologis, DCT Industrial Trust

Images from the Prologis web site and from a DCT Industrial Trust earnings supplement, in a montage. Prologis, a huge player in the industrial real estate market, has struck a deal worth $8.4 billion to buy DCT Industrial Trust, a major company in the same sector, in a transaction that includes dozens of Northern California properties.

PUBLISHED: 

Prologis, a huge player in the industrial real estate market, has struck a deal worth $8.4 billion to buy DCT Industrial Trust, a major company in the same sector, in a transaction that includes dozens of Northern California properties.

San Francisco-based Prologis, through its proposed purchase of Denver-based DCT Industrial, would obtain a portfolio of industrial buildings totaling 71 million square feet — the size equivalent of roughly three-dozen regional shopping malls — along with development projects and vacant sites.

According to information in a supplement to DCT’s first-quarter financial results, DCT’s portfolio includes an estimated 29 properties in Northern California. The properties total 5.13 million square feet, including DCT properties in San Leandro, Hayward and Tracy.

“For some time, we have considered DCT’s realigned portfolio to be the most complementary to our own in terms of product quality, market position and growth potential,” Prologis Chief Executive Officer Hamid Moghadam said in a prepared release.

Both companies specialize in what generically is known as logistics real estate, which includes industrial, warehouse and distribution centers.

“This transaction underscores the exceptional quality of DCT’s portfolio, platform and customer relationships,” DCT Industrial CEO Philip Hawkins said in a prepared release.

The deal also highlights the value of industrial properties in hot markets such as the Bay Area.

Cupertino-based Apple, Menlo Park-based Facebook, Mountain View-based Google and other tech giants have gobbled up huge amounts of space in Silicon Valley and elsewhere, through a combination of property purchases and leases. That activity has, in turn, prevented industrial development on some parcels where it might otherwise have occurred, and increased the value of existing industrial properties.

Seattle-based Amazon also is among the digital commerce companies that hunger for more industrial sites to support their online retailing activity.

“While we are later in the economic cycle, we believe that the industrial market has a long runway given growing e-commerce-related demand and the subsequent modernization of companies’ supply chains to accommodate for this,” Matt Kopsky, an analyst with St. Louis-based investment firm Edward Jones, wrote in a research note to clients regarding the Prologis-DCT deal, which is expected to be completed by the end of September.

Among the most high-profile of the Prologis properties in Northern California is a vast fulfillment complex in Tracy that’s leased to Amazon.

“We believe this is a positive strategic acquisition for Prologis,” Kopsky said in the research note. “DCT owns warehouses primarily in high-growth markets, which overlap nicely with Prologis’ portfolio. Additionally, DCT has a robust development pipeline in core markets.”

During 2017, Prologis earned $1.64 billion on revenue of $2.87 billion, while DCT Industrial earned $102.8 million on revenue of $429.7 million.

At the end of March, Prologis owned, or had investments in, 683 million square feet of properties, based on the combined size of the existing buildings and potential square footage of future buildings that could be constructed on vacant properties.

With properties in 19 countries, Prologis serves a base of 5,000 customers.

“This deal diversifies our customer roster through the addition of some 500 new relationships,” Prologis CEO for the Americas Eugene Reilly said in a prepared release.

$8.4 billion realty deal includes 29 Northern California properties

CCVEDC Conducts Annual Mission to State Capitol

PRESS RELEASE

For Immediate Release

CONTACT:

Lee Ann Eager, Co-Chair CCVEDC, 559-476-2513

Mark Hendrickson, Co-Chair CCVEDC 209-385-7686

Jennifer Faughn, Executive Director, 661-366-0756

CCVEDC Conducts Annual Mission to State Capitol

 

Photo 1: Left to Right: Asm. Jim Patterson, Mike Ammann, Asm. Devon Mathis, John Lehn, Asm. Dr. Joaquin Arambula, Lee Ann Eager, Richard Chapman, Asm. Rudy Salas, Bobby Kahn, Asm. Vince Fong, Tyler Richardson.

Photo 2: CCVEDC External Affairs Chairman Lee Ann Eager with Governor Jerry Brown.

April 5, 2018 Representatives from EDC’s throughout the Valley met with more than 20 legislators and top government officials to bring the voice of Central Valley businesses to the Capital.

”This annual effort helps to keep the needs of the Valley forefront in the minds of legislators from throughout the state. Needed infrastructure, regulatory reform and assisting all of California’s communities were primary topic of discussion,” according to Lee Ann Eager, External Affairs Chairman for the California Central Valley Economic Development Corporation, comprised of the eight EDC’s from San Joaquin to Kern.

Infrastructure Development for Business was the primary theme of the visit. The priorities list included Upstream Water Storage in Central Valley, Regulatory Reform, Workforce Development and Assistance for Disadvantaged Communities.

“The legislators from the San Joaquin Valley have a deep understanding of the need for upstream water storage, however, it is unfortunate that Sacramento politics are preventing the construction of this critical infrastructure. Water should be the number one concern of all Californians and we cannot conserve our way out of the situation we are in, we need to have additional storage. We were encouraged that the Temperance Flat upstream storage project seems to be a strong contender for Proposition 1A funding to help retain valuable water for use during California’s cycles of recent drought,” noted Bobby Kahn, CCVEDC Board Member and Treasurer.

The Central Valley is a prime location for advanced manufacturing, distribution, energy development, water technology and other industry sectors which support California’s identity as an innovation leader. With available land, buildings and the workforce to support industry, the CCVEDC members work daily to promote the Valley and all of California for business expansion and location.

“As Representatives from the California Central Valley Economic Development Corporation, we were very pleased with the support received from local legislators. Discussions of common issues were extremely productive and we look forward to continuing to work together to ensure that the Central Valley is the best place to live, work and thrive,” stated Eager.

In addition to valley legislators, the group met with the Assembly Committee on Jobs, Economic Development and the Economy; the Governor’s Office of Business and Economic Development (GoBiz), and California Manufacturing & Technology Association officials.

CCVEDC is a not-for-profit Corporation supported by the 8-county region in the Central Valley, PG&E and Central Calif/Central Mother Lode Regional Consortium (CRC) Partnership, whose mission is to attract and retain jobs and investment in the Central San Joaquin Valley counties of San Joaquin, Stanislaus, Merced, Madera, Fresno, Kings, Tulare and Kern.

2018 Legislative Priorities

INFRASTRUCTURE DEVELOPMENT for Business

Infrastructure is a foundational aspect of job creation. California’s most disadvantaged communities struggle to develop the public infrastructure needed to attract and grow jobs and private investment. Needs based funding and incentives are required for public infrastructure in disadvantaged communities. The Central Valley region will benefit from a ‘hand-up’, resulting in full participation in our state’s economic recovery.

a.      Upstream Water Storage

Background:  California will continue to struggle with drought conditions until additional upstream water storage is developed to support people and agriculture. The Water Bond of 2014 provided funding to develop upstream storage at Temperance Flat for agricultural and municipal water storage to serve the Central San Joaquin Valley and all of California.

Action needed:

  • Support administrative and legislative efforts to develop water storage at Temperance Flat and other water infrastructure projects throughout the state.

b.      Regulatory Reform

Background: Of California’s 4 million businesses, 3.1 million are sole proprietorships. 87% of companies have 20 or fewer employees. Environmental regulations in California are a burden on our small businesses, causing them to leave or expand outside of our state. Following are some areas that pose the greatest burden to business:

  • California Environmental Quality Act (CEQA): Litigation brought about under CEQA has resulted in delaying and killing projects that met all environmental protection requirements.
  • AB 32 Cap and Trade costs are significant, and collected fees are ‘invested’ into programs with ‘modest’ ties to air quality improvements.
  • California’s minimum wage and leave laws: The wage and leave costs placed on businesses is a competitive disadvantage, and renders a California location or expansion unsustainable for many.

Action needed:

  • Reform CEQA to limit appeals and delays after the public review process.
  • Review the AB 32 fees distributed over the past 24 months to determine whether they are having the intended effect to reduce pollution.
  • Allow costs related to minimum wage, personal leave laws and wage and hour regulations to stabilize before adding new economic burdens.
  • Evaluate California’s competitiveness with states such as Nevada, Arizona and Texas to determine how we can improve our attractiveness on major projects we have lost to these neighboring states.

c.      Workforce Development

Background:  The Central San Joaquin Valley counties are focused on the development of training and retraining in advanced manufacturing. Partnerships with business and education have been forged to develop a globally competitive workforce. We must raise the academic achievement of Central Valley students in STEM disciplines.

Action needed: 

  • Direct workforce development resources to disadvantaged regions and communities. Support the development and rollout of curriculum that supports advanced manufacturing, including tuition reduction for graduates who go on to teach these skills.
  • Address the lack of qualified teachers in Fundamental Sciences in the Valley. Incentivize STEM graduates to pursue a career path in teaching.

d.      Assistance for Disadvantaged Communities

Background:  California’s most disadvantaged communities are in desperate need of tools and resources to develop the public infrastructure required to attract and expand business. Logistics firms locate out of state to avoid California transportation and fuel requirements and costs. These firms transport cargo from the Ports out of state, and then bring many of those goods back to California for sale.

Action needed: 

  • Grant full sales and use tax elimination on manufacturing equipment purchases in counties or regions with annual unemployment rates equal to or greater than 130% of the average statewide unemployment rate or other defined economic characteristics.
  • Extend the applicability of the Sales & Use tax exemption to logistics and distribution centers (possibly through amendment of AB 398). This would incentivize the location of these facilities within impoverished communities in California and reduce pollution by reducing out of state truck miles and the utilization of cleaner diesel required by CA companies.