CCVEDC Conducts Annual Mission to State Capitol

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.

 

Former State Farm complex, Bakersfield’s largest office building, sells

BY STEVEN MAYER

    Apr 5, 2018
State Farm
Hundreds of State Farm employees still work at the building at 900 Old River Road. But as of Tuesday, the building, with more than a half-million square feet of office space — Bakersfield’s largest — has a new owner.Felix Adamo/ The Californian

Could Bakersfield’s largest office building become the new local headquarters for a big oil company?

In a landmark sale that could affect commercial real estate in Bakersfield for years to come, Cushman & Wakefield and two of its directors said Thursday that the former operations center for State Farm in southwest Bakersfield has been sold.

The commercial real estate agency’s Senior Director Jeff Andrew and Associate Director Pat Thompson closed one of the biggest deals of their careers earlier this week, but due to a strict confidentiality agreement, they can’t reveal key details — except for the fact that after years of work, the sale of the massive, four-story, 556,000 square-foot building closed on Tuesday.

“We can talk about how this could affect the commercial real estate market locally,” Andrew said. “But we can’t reveal the seller, the buyer or the price.”

Fortunately for the curious, that information is part of the public record, and Californian reporters have been checking on the fate of one of the city’s most important chunks of real estate, on and off, for months.

According to information compiled by the Kern County Assessor’s and Recorder’s offices, the seller, represented by Cushman & Wakefield, was listed as LSREF2 Tractor REO BAK LLC.

More interesting, the buyer is identified as California Resources Real Estate Ventures LLC, or California Resources Corp., a Los Angeles-based energy company that spun off from Occidental Petroleum Corp. in 2014.

The price: $48.4 million.

The presence of the insurance company’s center at 900 Old River Road, and the hundreds of jobs it created, had been touted for years as a significant economic driver for the southern San Joaquin Valley. So when State Farm announced it was leaving, the news inspired angst among those concerned about jobs and economic growth in Bakersfield.

State Farm is committed to a reduced number of employees staying in the building, for now, Andrew said, but the new owner — he would not confirm the name of the buyer — would fill out the lion’s share of the space.

Many of those new employees will come from several other local commercial office buildings and will be consolidated under one huge roof. That means office vacancies will be opening up in Bakersfield. But those smaller spaces should be easier to fill, said Thompson.

A building with more that a half-million square feet of office space has few potential tenants.

“We had to go to the largest users of office space,” Andrew said.

And that’s a very short list.

http://www.bakersfield.com/news/former-state-farm-complex-bakerfield-s-largest-office-building-sells/article_c4863ec0-3924-11e8-b71f-dfbdf6a0adaa.html

Clovis’ craft beer scene is heating up: ‘We see a lot of potential out here’

Updated April 04, 2018 03:36 PM

Ex-Fed Ex building sold for $10.45M in Stockton

By BusinessJournal

 

The property at 4730 FIte Court in Stockton, a one-time Fed Ex ground facility, has sold for $10.45 million to Dermody Properties.

An industrial building which once house a Fed Ex ground facility in Stockton has sold for $10.45 million.

Dermody Properties, a company owning distribution, e-commerce and manufacturing sites throughout the U.S., purchased the location at 4730 Fite Court, which is 143,888 square feet off Arch Road, east of Highway 99 in Stockton.

“Dermody Properties has made significant strides at growing their footprint in the Central Valley and proved to be the best buyer to bring in, figure out this somewhat complicated transaction given the existing tenant, underlying sublease and other property related matters, and close on this well-located, quality asset,” said Jim Martin, SIOR, of Lee & Associates Stockton, who represented Dermody Properties in the transaction.

“This is further testament to how our Lee offices are able to execute assignments and work in partnership to provide excellent service to our customers,” Martin went on to say.

The seller was Stockton MAG, LLC., who was represented by Martin and Craig Hagglund, SIOR, of  Lee & Associates Oakland.

https://cvbj.biz/2018/04/05/ex-fed-ex-building-sold-for-10-45m-in-stockton/

ALDI bringing its low-cost grocery stories to two Valley locations

Updated April 03, 2018 01:10 PM

Faraday Future makes headway in Hanford

  • Updated 
Faraday Future sign
Electric car company Faraday Future has a sign with its name outside the old Pirelli Tire plant at 10700 Idaho Ave. in Hanford’s Industrial Park.

HANFORD — It’s been a relatively quiet seven months since electric car company Faraday Future announced its plans to locate in Hanford, but the company seems to be slowly but surely moving forward with its plans.

“Things are absolutely moving forward,” said John Lehn, president and CEO of Kings County Economic Development Corporation (Kings EDC).

Lehn said he is in contact with Faraday officials multiple times a week. He said his office continues to be impressed by the quality of people who work for Faraday Future and has complete confidence in the company’s dedication to Hanford.

Faraday Future signed a lease in August 2017 to locate in a manufacturing facility in the old Pirelli tire plant at 10700 Idaho Ave. in Hanford’s Industrial Park. The company immediately hosted a clean-up event to prepare the 1 million square-foot new site for the move-in of manufacturing equipment.

The facility is supposed to be used to manufacture the company’s first electronic vehicle, the FF 91, and hopefully bring it to market.

Little tidbits of information have surfaced every once in a while since the announcement. Dag Reckhorn, Faraday Future’s senior vice president of global manufacturing, visited Hanford in September and October 2017 to talk publicly about the car and the company’s goals.

Faraday Future said it wanted a turn-key facility that offers a faster path to production, and picked the site in Hanford because it is strategically located between the country’s two largest electronic vehicle markets: Los Angeles and Silicon Valley.

But there have also been troublesome news surrounding the company as well, including shake-ups and departures within the company’s top executives and funding difficulties.

Lehn said he understands the skepticism the news has elicited, especially taking into account the scope and scale of what the company is trying to do.

Darlene Mata, Hanford’s community development director, said Faraday was recently issued a demolition permit for the inside of the plant and has been doing asbestos removal and lead paint remediation.

Mata said Faraday is also currently in the site plan review process with the city, meaning the department is making sure the entire site has the proper access and parking spaces that meet city standards.

“No building permit application has been submitted yet,” Mata said. “I don’t know when one will be submitted, but they said soon.”

Requests for comment from Faraday Future were not returned.

Lehn said Faraday is moving forward with the hiring process and is currently taking applications online only. He said his office has been involved with facilitating a few interviews already.

Faraday’s website has posts for several job openings in Hanford, including administrative positions, various “team member” positions and even a few management positions.

In addition to working with both Tulare and Fresno counties’ workforce boards, Lehn also said Kings EDC and Faraday are working in conjunction with West Hills Community College District to offer some type of introductory manufacturing course.

“A lot of things are happening all at once,” Lehn said. “Everything’s moving full speed ahead.”

http://hanfordsentinel.com/news/local/faraday-future-makes-headway-in-hanford/article_06b04ce2-7f91-529e-8c9c-61aea192edc2.html

Two more housing developments set for Visalia

 

  • San Joaquin Valley Homes and Presidio Residential Capital to build
  • “Greystone” and “Ashton Park” to be designed for entry-level buyers and young families

Two new residential communities, called Greystone and Ashton Park and totaling 218 detached single-family homes priced from the mid-$200,000s, are planned for Visalia by San Joaquin Valley Homes and Presidio Residential Capital. The developers say they have closed on 29 acres (151 lots) and plan to close an additional 19 acres (67 lots) next year for the projects.

Groundbreaking is expected in April and the neighborhoods are expected to be open for sale by early 2019. Their retail value is estimated to exceed $52 million.

“Ideally located on prime Visalia land in the Northwest with easy access to excellent schools, these communities will be extremely appealing to first-time and move-up buyers and young families,” says Danny Garcia, vice president of sales at SJV Homes, which is based in Visalia.

Greystone will offer 127 traditional homes with six floor plans ranging from 1,658 to 3,205 square feet on lots ranging in size from 6,800 to 8,200 square feet with some premium lots over

10,000 square feet. Ashton Park will offer 91 garden homes with three floor plans ranging from 1,297 to 1,597 square feet on lots ranging in size from 4,700 to 6,000 square feet. These homes will feature nine-foot ceilings, pitched tile roofs, tile flooring, granite countertops, stainless appliances and two-car garages.

The new communities are located on the northeast corner of West Riggin Avenue and North Akers Street across the street  from the new Ridgeview Middle School. The new residential neighborhoods are located less than four miles from downtown and about four miles east of Highway 99.

Founded in 2013 by Joe Leal, Jim Robinson and Randy Merrill, SJV Homes closed on its 1,000th home in late December 2017.

The Visalia communities are SJV Homes’ 17th and 18th joint venture projects with Presidio Residential Capital, a San Diego based real estate investment company that funds 100 percent of the projects and operations of SJV Homes.

According to the National Association of Home Builders’ formula to determine the local impact of single-family housing in typical metro areas, adding 218 single-family homes will generate $63.7 million in local income, $7.9 million in taxes and other revenue for local governments and 875 local jobs.

http://files.constantcontact.com/2cb20f61601/1b2a39c3-547d-46c7-98a9-b72e265c8d72.pdf

Gap bringing fulfillment center to Fresno, expected to add more than 500 jobs

Clovis Community Medical Center to add beds, expand services

 

  • Expansion planned over next four years
  • To cost $390 Million

Community Medical Centers’ Board of Trustees today approved a four-year construction project that will add 144 private beds and expand several services at Clovis Community Medical Center in the Central Valley city of Clovis.

The $390 million, 190,000-square-foot expansion project will feature a five-story bed tower and will add 15,000 square feet to the hospital’s emergency room, create six additional operating rooms, 24 additional ICU beds, and expand the hospital’s radiology, pharmacy and laboratory services along with the kitchen and dining areas.

The project also will include an additional parking structure and a two-story, 60,000-square-foot clinical and administrative support building.

When the project is completed in 2022, Clovis Community will have 352 all-private inpatient beds while providing jobs for an additional 420 nurses, therapists, technicians and support staff.

“We need to significantly expand inpatient capacity in our hospital system, and this Clovis project is the quickest and most cost-effective way to do it,” says Tim Joslin, Community’s president and CEO.

Site work will begin next month, and Community anticipates the expansion project to employ some 2,500 construction workers, the overwhelming majority of them local.

Funding for the expansion will come from Community’s operations and from donations.

http://files.constantcontact.com/2cb20f61601/50ddefe4-7c4a-4dc4-b5a1-e0c3ce2a241c.pdf