Warehouse construction begins for first phase of long-awaited Bakersfield Commons project

A Corona-based company has begun construction of a large warehouse project southeast of Rosedale Highway and Coffee Road that is planned to be the first phase of the long-delayed Bakersfield Commons multiuse development.

Grading work is underway and several earth movers are in place for a speculative project that a local broker involved with the project said has attracted preliminary interest from Fortune 500 companies.

“It’s in a submarket with a lot of pent-up demand that hasn’t had any new product, especially class A projects, in the submarket for a long time,” said Senior Vice President Wesley McDonald with ASU Commercial.

Rexco Development is calling the project Bakersfield Central Logistics Park. Signs nearby say it will include a 91,000-square-foot building on the northern portion of a vacant lot south of the Lowe’s Home Improvement store, and a 209,000-square-foot structure to the south.

Online materials describe a distribution and last-mile logistics project with 62 dock-high doors, more than 80 trailer stalls and 340 parking spaces. Located on 20.7 acres at 2152 Coffee Road, it would be made of concrete tilt-up construction with ceilings up to 36 feet high.

The project description says the buildings would measure a single story and that the larger of the two could be divisible into spaces as small as 45,000 square feet.

The plan is to finish the warehouse project by the middle of next year.

City officials did not respond to a request for information about the project’s approval and design.

The property is located directly north of a property owned by Adventist Health. Three years ago the Roseville-based hospital chain announced its intentions to develop a roughly $10 million ambulatory care and medical office building at the site.

Those plans have not been finalized, and on Thursday, Adventist’s Central California Network president, Jason Wells, said the company is probably 18 months away from a decision on how to proceed with the health-care facility.

Bakersfield Commons, proposed to cover 255 acres, has gone through many iterations since the mid-2000s — at one point it was to include a baseball stadium, and later, a Topgolf entertainment center — but a series of deadlines has come and gone.

As of 2021, the plan was to put more than 300 units of multifamily rental housing on the property by the end of 2022. Commercial space was also contemplated, as was 150,000 square feet of retail space including a movie theater, at least one gym, a grocery store and restaurants. They were supposed to have opened early this year.

Strong demand for logistics centers has made industrial property the hottest segment of Kern County’s real estate market. Major retailers including Amazon, Walmart and Target have filled spaces measuring 1 million or more square feet in areas such as Shafter, the Mettler area and Oildale.

Most of those warehouses are located away from busy neighborhoods, making the Rexco project one of few in Kern to be largely surrounded by existing homes, though it won’t be directly adjacent to them.

With the exception of the Adventist property, land for Bakersfield Commons is owned by South Gate-based World Oil Corp., whose president and CFO said in a news release Thursday afternoon that Rexco was a natural choice because of the companies’ shared comment to high quality, state-of-the-art development.

“We’re very pleased to be working in partnership with Rexco Development to deliver this much-needed logistical resource for the Bakersfield region,” Matthew Pakkala stated.

Rexco President Larry Haupert added in the release that his company was thrilled to be working with World Oil on the first development of the Bakersfield Commons site.

“The demand for modern, advanced logistical facilities in the Bakersfield area continues to grow,” he stated.

Accelerated workforce programs within SCCCD are preparing students for new careers

Accelerated workforce programs are helping get students trained, certified and prepared for new careers. A new partnership in Fresno County is also making it possible for students to receive training free of charge. Raul Salazar has been practicing welding since he was 14.

He says he learned from his dad, who is skilled but has never been certified.

“He told me, he’s like, ‘The only way you’ll become a better welder than me is once you get certified because before that, you can’t catch up,'” Salazar said.

Proposed hydrogen fuel facility in Tracy highlighted at Valley Link luncheon

Tracy’s place in the Valley Link rail project was highlighted during a luncheon last week at the Tracy Community Center.

The Sept. 18 event was hosted by the Innovation Tri-Valley Leadership Group and the Tracy Chamber of Commerce, Tracy Earth Project, the Tri-Valley – San Joaquin Valley Regional Rail Authority and the Livermore Amador Valley Transit Authority (LAVTA).

A series of speakers addressed the Valley Link/LAVTA Advancing Hydrogen Electrification and Deployment (AHEAD) project, which will bring a proposed hydrogen fuel production facility to Tracy. That facility is planned for a piece of city-owned land along Schulte Road, a site once known as the “antenna farm,” between the Owens Brockway Glass Container plant and the Prologis International Park of Commerce. That site is already slated as an operations and maintenance facility for Valley Link.

The hydrogen fuel production facility will be a central aspect of the Valley Link project, which is designed to relieve traffic congestion on Interstate 580 and the Altamont Pass, while also serving as the nation’s first rail system to be powered by hydrogen fuel.

“Today there is no clean, reliable, high frequency transit alternative to vehicular congestion on Interstates 205 and 580 for the more than 105,000 Bay Area workers now commuting daily from their homes in communities in the Northern San Joaquin Valley,” said Melissa Hernandez, BART Director and Chair of the Valley Link Board of Directors.

“Valley Link seeks to connect the Northern California megaregion with the first passenger rail system in California running on self-produced, green hydrogen and a hydrogen fuel production facility able to support the clean energy goals of other transit and heavy truck operators.”

Over the course of the 2-hour event speakers discussed the plans for the 42-mile commuter rail system, which could begin construction next year and provide service along the first 22-mile phase between Mountain House and Dublin/Pleasanton by 2027-28.

“Even before Valley Link begins operations, the hydrogen production facility will support clean energy for Livermore Amador Valley Transit Authority and other transit operators within the next 2 to 3 years, providing a near-immediate benefit to the community,” said Katie Marcel, CEO of Innovation Tri-Valley Leadership Group.

Speakers commented that Tracy and other communities on both sides of the Altamont Pass will benefit from job creation and economic growth related to the project.

Kevin Sheridan, Valley Link Executive Director, described the 42-mile alignment of the Valley Link route and its connections with the Altamont Corridor Express and BART’s Dublin/Pleasanton station, including the first 22-mile phase between Mountain House and Dublin/Pleasanton.

He noted that $800 million already available in local and state funding will help leverage federal grants to close the funding gap on the project, expected to total up to $1.9 billion. Also giving the rail authority an advantage in the quest for matching funds are the mandates to seek alternatives to widening freeways.

Sheridan recalled how widening Interstate 205 from four to six lanes in 2007-08 cut commute times by 20 minutes, but after new home construction ramped up again in the San Joaquin Valley about 10 years ago those gains are long forgotten.

“All of a sudden 205 looks exactly like it does at six lanes as when we were working on it at four lanes,” he said. “We can’t widen 205 anymore. It’s just not feasible to do it.”

Sheridan went on to explain that new state rules for widening freeways also call for reduction of greenhouse gas emissions from car exhaust.

“In order to widen a freeway you have to show how you are going to mitigate for greenhouse gases, and the only way to really do that is by having a rail or bus system. In this corridor a rail system makes the most sense.”

Sheridan added that efforts are under way to nail down the costs and funding sources for the hydrogen facility in Tracy.

“It really is a unique opportunity for the region to be first in this area, to be able to produce hydrogen and supply it for the buses and the businesses in trying to achieve zero emission goals for the state.”

Christy Wegener, Executive Director of Livermore Amador Valley Transit Authority (LAVTA), noted that her agency already provides feeder bus service to three ACE stations, two BART stations and will go to three Valley Link stations in the Livermore-Dublin-Pleasanton area.

She explained how the Accelerating Hydrogen Electrification and Deployment (AHEAD) project will be a key component of Valley Link and will support her agency as well. To that end, LAVTA is joining Valley Link in a $70 million grant application to the state’s Transit and Intercity Rail Capital Program (TIRCP), another funding source that prioritizes green energy.

Wegener noted that because of their zero-emission goals, LAVTA and Valley Link are well-positioned to get that grant money to help build the hydrogen production facility in Tracy.

She noted that the state requires transit agencies to be zero-emission by 2040, beginning with every bus purchase in 2029, and the LAVTA board adopted a plan to be zero-emission by 2034, beating the state mandate by six years

“We cannot do that if we do not have more infrastructure, affordable hydrogen and a skilled workforce,” she said.

“The current type of hydrogen is 2½ times the price of diesel, and is not produced anywhere local. Agencies are trucking it in from Reno, Vegas and Irvine, and that adds more GHGs (greenhouse gases) into the environment, which does defeat the purpose of a zero emissions future,” Wegener said.

“Without a local affordable hydrogen supply, our zero emissions future could be limited to a few bus lines, which will not help in accomplishing the state’s aggressive climate goals.”

Other speakers at last week’s event included Momoko Tamaoki, Deputy Director of Planning and Programming at San Joaquin Regional Rail Commission; and Beth McCormick, Employer Engagement Specialist with Las Positas College.

Tamaoki discussed the advancement of the hydrogen rail vehicle deployment on other passenger rail systems connecting the San Joaquin Valley and Bay Area; and McCormick discussed partnerships with Los Positas College and workforce development as transportation agencies make the transition to hydrogen-fueled transportation.

District 13 Assemblymember Carlos Villapudua provided closing comments, noting that Senate Bill 125 provided funding to the San Joaquin Council of Governments to support the transition of public transit fleets in San Joaquin County to zero emission vehicles.

“Our region’s success depends on the collaboration of everyone at every level of government. Thankfully, we have solutions to bring this opportunity to fruition. An investment in the hydrogen facility will lift all boats by improving the lives of our constituents and our environment.”

https://www.ttownmedia.com/tracy_press/proposed-hydrogen-fuel-facility-in-tracy-highlighted-at-valley-link-luncheon/article_f306488e-7c2b-11ef-a8e0-6b07b161e760.html

Blue Diamond partners with Divert ahead of renewable energy facility opening

Though we may still be months away from the opening of the new 65,000 square-foot Divert Inc. facility that will process unsold food from grocery stores into renewable natural gas, the Massachusetts-based technology company announced last Tuesday that they were entering in a partnership with Blue Diamond Growers.

Blue Diamond — the world’s leading almond company with processing plants in Turlock, Salida and Sacramento creating products like almond flour, almond oil and almond protein powder— will be sending almond processing byproducts to the facility being built at 4407 W. Main St. for it to be transformed into renewable energy.

“We are proud to join forces with a company like Blue Diamond Growers that shares our mission and commitment to sustainability,” said Ryan Begin, CEO and co-founder of Divert. “The organic byproducts from food processing have tremendous value that can be converted into renewable energy to power our communities. With California being the largest food manufacturer in the U.S., there is a real opportunity for the state to adopt the technologies and infrastructure for food processing that will have a positive impact on the climate crisis. We applaud Blue Diamond for being at the forefront of the industry in implementing solutions to better our world.”

The renewable energy created from the byproducts are expected to be used to supply local homes and businesses, as well as soil amendment that allows for the nutrients to return to farmland thereby supporting further food growth.

Prior to the facility’s groundbreaking in April of 2023, Divert came to an interconnection agreement with PG&E. When the project is completed and operational, processed Renewable Natural Gas (RNG) will enter PG&E’s on-site transmission line, replacing fossil fuel gas with a carbon negative renewable fuel.

The process of creating renewable energy starts with unsold food material being liquefied and purified before being processed into a finished clean food slurry. The slurry is then pumped directly into an on-site anaerobic digester, where it is turned into biogas, a mixture of gasses, primarily consisting of methane, carbon dioxide and hydrogen sulfide. The equipment then removes impurities from the biogas and upgrades it into pipeline quality RNG to meet utility company standards.

“Blue Diamond’s long history of furthering the use of almonds and almond byproducts is an important part of our sustainability story and why our almonds have a record of very low waste,” said Dan Sonke, Head of Sustainability at Blue Diamond Growers. “This partnership with Divert is a way to continue our legacy of putting resources to their best and highest value for our farmer-owners and community.”

The facility is expected to be completed sometime during the fourth quarter of this year. There will be roughly 40 employees, including plant managers, technicians and truck drivers.

According to Divert, the United States alone generates more than 100 million tons of food waste annually, with over 50% going to landfills or incinerators. Additionally, food waste contributes 8% to 10% of global greenhouse gas emissions. Financially, American food retailers waste $25 billion in food each year. To combat the issue, state and municipal food waste laws have been increasingly enacted in recent years to preserve landfill capacity and curb greenhouse gas emissions. In California, that comes in the form of Senate Bill 1383.

SB 1383 was signed into law by former governor Jerry Brown in 2016, establishing a statewide effort to reduce emissions of short-lived climate pollutants in various sectors of California’s economy, one of those sectors being the food and retail industry. Beginning in 2022, SB 1383 required every jurisdiction to provide organic waste collection services to all residents and businesses. Additionally, businesses had to begin collecting, sorting and transferring organic waste to a specified composting facility, community composting program or other collection activity or program.

https://www.turlockjournal.com/news/local/blue-diamond-partners-with-divert-ahead-of-renewable-energy-facility-opening/

Annexation of Virginia Smith Trust Land is Finalized

The City of Merced is pleased to announce that the Virginia Smith Trust (VST) annexation has been officially recorded and is now complete. This marks a significant step forward in the city’s long-term growth plans, as 650 acres of land just south of UC Merced have now been annexed.

The Local Agency Formation Commission (LAFCo) gave its final approval to the annexation, following a unanimous vote by the Merced City Council earlier this year. The VST property will be developed into an exciting new part of our community, transforming into a vibrant area with new homes, apartments, retail and commercial spaces, parks, and essential transportation routes.

“This has been a multi-year effort involving collaboration with multiple agencies,” said City Manager Scott McBride. “We received notice that the VST annexation is now officially recorded. This project will help provide affordable housing and offer direct support to UC Merced. We are already seeing interest from private developers eager to work in this area.”

Now that the annexation is final, the focus shifts to processing the necessary entitlement applications for maps and permits to begin construction. The development will also create revenue that will directly support local students, as it funds scholarships from the Virginia Smith Trust. Established in 1975, the Trust has awarded nearly $7 million in scholarships to more than 3,500 Merced students. 

“The legacy of Virginia Smith and her brother Cyril will impact future generations of Merced County students,” said Merced County Superintendent of Schools, Dr. Steve Tietjen, who also serves as an advisor to the Trust. “It is now up to us to maximize the potential of this gift.”

The Virginia Smith Trust has played a key role in Merced’s development over the years. In the late 1990s, a large portion of the Trust’s land was donated for the creation of UC Merced, which has since become one of the nation’s top-ranked universities. Another section of land was preserved for environmental conservation, protecting vernal pools that provide a habitat for endangered species.

The City of Merced is thankful for the continued support of the City Council and the efforts of all those involved in making this project a reality. The VST annexation opens the door to future growth and development that will benefit both the community and UC Merced for years to come.

https://www.cityofmerced.org/Home/Components/News/News/1832/17

Valley Children’s Ensures Energy Resiliency With Pioneering Microgrid Project

Valley Children’s Healthcare broke ground today on an innovative microgrid project that will ensure the hospital’s long-term energy resilience and sustainability. The microgrid includes solar panels, fuel cells and battery storage that will allow it to generate, store and distribute electricity and reduce the hospital’s reliance on fossil fuels.

Valley Children’s state-of-the-art system will provide a reliable, clean energy source and ensure uninterrupted care for patients – even during power outages. It will be one of the largest renewable energy microgrids connected to a hospital emergency system in the country.

“Today marks a momentous milestone for Valley Children’s, and this initiative is a testament to our unwavering commitment that our hospital remains a beacon of hope and care, regardless of external circumstances,” said Valley Children’s Healthcare President and CEO Todd Suntrapak. “By investing in this cutting-edge technology, we are securing a reliable energy source for our patients, doctors and staff and contributing to a more sustainable future for our community.”

Valley Children’s microgrid will incorporate renewable energy technologies, including solar photovoltaic materials designed in the shape of the hospital’s beloved mascot, George the Giraffe. It will reduce greenhouse gas emissions and contribute to cleaner air in a region with some of the nation’s poorest air quality.

When operational in 2025, the microgrid will cover 80% of the hospital’s energy needs, reduce greenhouse gas emissions by more than 50% and save $15 million in energy costs during the next 25 years. Importantly, it will ensure the hospital remains fully functional at all times, even during regional power outages.

In 2023, Valley Children’s joined the U.S Department of Energy’s (DOE) Better Climate Challenge, an initiative aimed at accelerating decarbonization across various sectors in the country.

“Congratulations to our Better Climate Challenge partner Valley Children’s Healthcare for breaking ground on a first-of-its-kind renewable energy microgrid,” said Maria Vargas, Director of the Department of Energy’s Better Buildings Initiative. “By improving community resilience and reducing reliance on fossil fuels, innovative projects like this are what the Better Climate Challenge is all about: meeting the challenge of climate change head-on and leading the way for others.”

“Our mission is driven by the unwavering belief that every child deserves the best possible future,” added Suntrapak. “Every decision we make is guided by our dedication to their health, safety and well-being. This project is not just about energy resilience. It is about ensuring a brighter, more sustainable future for generations to come.”

https://www.valleychildrens.org/news/news-story?news=1400&fbclid=IwY2xjawFpPKhleHRuA2FlbQIxMAABHcopn-xDkk6Ty2CLCsPDsUMeNM5d1g1F4J9SrlX9AZTgYKtaVRnkEOMw7Q_aem_bvBQkL–g_rQ500IFo7IWA

NAS Lemoore plans lease of 425 MW solar farm and construction of data center

The US Navy is working on a lease of 920 acres of land around the Naval Air Station Lemoore base to a Massachusetts company who would construct a large 425 MW solar farm and build a data center the size of three Costcos on the base campus.

This is the third run to lease surrounding land at the base by the government to produce energy that could help protect the facility power supply and offer resiliency. Similar projects were proposed in 2015 and 2023 but no construction ever happened.

Now there is a new investor who could build this project that now includes a 600,000 square foot power-hungry data center — one of hottest commodities on Wall Street these days.

A draft environmental document (Supplemental Assessment-SEA) published in June says a new lessee — Ameresco — could sell the generated power to regional customers, including the onsite data center. In return, the lessee would provide in-kind consideration in the form of energy generation to the Navy that would allow NAS Lemoore to work toward meeting both Navy and Department of Defense energy resiliency objectives. The project would include EV charging stations, a battery storage facility or BESS, backup generation/microgrid and related infrastructure.

A data center is a facility used to house computer systems and associated components, such as servers, storage systems, networking equipment, and other hardware. It serves as a centralized location for organizations to store, process, manage, and distribute large amounts of data. Data centers are

designed to provide a controlled environment with optimal conditions for the reliable operation of the computer systems. They have redundant power

supplies, cooling systems, and backup generators to ensure uninterrupted operation. They also employ various security measures, such as access controls, surveillance systems, and fire suppression systems, to protect the valuable data and equipment.

The data center would be connected to high-speed long haul fiber optic network for receiving and transmitting data. The facility would be primarily powered by on-site solar and battery storage for most of the year and would be connected to grid power for periods of low solar energy production.

The data center would be secured by fences and gates and only accessible by authorized personnel or deliveries. Vehicles onsite would include employee

vehicles, delivery trucks and service vehicles. During operations, the project site would have 20 employees, with staffing seven days per week, 24 hours per day.

A key factor that contributes to the rapid expansion of data center construction in the U.S. is digital transformation. As more businesses undergo digital transformations, the need for robust IT infrastructure to support cloud computing, big data analytics, and online services has skyrocketed, says one analysis.

Federal incentives have promoted investments. There are no data centers in Kings or Tulare counties.

Approximate Construction Timeline

Construction of the overall project would be expected to begin in 2024, says the document, with data center operations most likely commencing in 2025. The project can be constructed in single or multiple phases that are determined by the data center customer. Data center development typically can include up to five phases of approximately 20-25 MW increments that may extend construction time through 2027.

History of lease

The document is a Supplemental Assessment because the 2016 environmental study led to a lease of lands around the base that is still in place. NAS Lemoore encompasses 18,784 acres of Navy-owned land.

On Oct. 12, 2016, approximately 930 acres (i.e., Project Site) were leased to Liberty CO LLC for a term of 37 years (expiring Oct. 31, 2053). The existing lease with Liberty CO LLC was then transferred to Bright Canyon Energy on Feb. 14, 2019. In January 2024, Bright Canyon was acquired by Ameresco, and thus, as of 2024, Ameresco is now the current lessee of the undeveloped land.

Under the Navy’s 2024 Proposed Action, the existing lease would be modified to allow the lessee to construct and operate additional resilient energy systems within the leased 930-acre Project Site.

The existing lease allows the lessee to construct and operate up to a 125 MW solar PV system and associated infrastructure. The changes proposed as part of the 2024 Proposed Action would include the construction and operation of an additional 300 MW of solar PV systems (for a total of up to 425 MW) and an option to construct a data center, EV charging stations, BESS, backup generation/microgrid, and related infrastructure.

Ameresco, Inc. completed the acquisition of Clean Energy Asset from Bright Canyon Energy for $76.8 million, says their website.

Ameresco develops, owns and operates renewable-energy projects across the United States, Canada and Europe. In California, its projects include battery storage installations, including a $1.2 billion, 537.5-MW project that was delayed due to COVID-19 lockdowns and resulted in the company declaring a force majeure in April 2022. Ameresco was contracted to construct the battery storage systems for SCE at the utility’s substations in Ventura and the Los Angeles area.

The environmental document says once construction starts, it will employ about 400 construction workers.

Visalia tills crops into industrial plants

Dairyman Jay teVelde, Jr. is the latest north Visalia landowner to request a large annexation within the city limits to capitalize on the need for greater industrial space.

TeVelde, Jr. is requesting annexation of more than 300 acres into the City of Visalia that will add more developable land to the Visalia industrial Park. The site is north of Riggin and east of Plaza. The multiple parcels reach close to Highway 99 to Road 68 on the northern edge of Goshen. His mixed-use proposal consists of some residential and commercial designations with 225 acres zoned for industrial uses, according to a recent plan filed with the city.
The proposed annexation adds to five other recent annexations that will bring more residential, big box commercial and industrial uses as the city expands its reach to accommodate growth. A number of these projects are still in the works, including land for Costco to build a new retail store at Riggin and Shirk and add some 500 new homes around it.

Other annexations include a 320-acre industrial project on land owned by the Ritchie family that is in the middle of an environmental review seeking approval probably early next year.

Landowners on the northern tier of Visalia have in the past few decades, cashed in on the fact that development, from residential to industrial, has been moving their way. Names include long time farming families such as Doe, Shannon and Ritchie, and now teVelde, who all own or owned mostly low-value, field-crop land north of the historic city limits. It’s not low value anymore.
Some families have taken a direct hand in the development of these lands like the Shannons, who have developed Shannon Ranch and mixed use residential and retail projects like the new northside Costco project expected to break ground in a matter of months.

Of course, the Doe family has a street in the industrial park named after them and annexed 156 acres into the city a few years ago at the NW corner of Plaza and Riggin, later sold to Fresno developer John Brelsford who is marketing it.

Also, as mentioned, the Ritchie family, who is now annexing a whole section of land into the city, has sold off the development rights to Seefried Industries awaiting completion of their environmental impact report before annexation is approved. This project is a behemoth as Seefried has come to an agreement with the Ritchie family to build a proposed 3.8 million square foot industrial complex north of Riggin Road between Kelsey Street and Shirk Road. The project is expected to employ 4,100 workers at build out.

Another industrial annexation was recently approved on 80 acres at the southwest corner of Riggin and Shirk by YS industries. The project was recently challenged with the lawsuit claiming that the city allowed the project to move forward without proper environmental studies. The city has rejected the assertion and the applicant expects the project to move forward early next year. Part of the land used to be a dairy.

Now to the west, the dairy family led by Jay teVelde, Jr. is planning to develop over 300 acres north of Riggin and west of Plaza (See maps). The specifics of the new teVelde proposal include some 225 acres of industrial, about 50 acres of high density residential and 25 acres of commercial fronting on Riggin. There’s also land set aside for a water storage basin.

Asked this week if he could comment on his annexation request, Jay, Jr. said he could not. Visalia-based 4 Creeks consultants are steering the project through the city approval process.

Family history

The teVelde family have expanded their already successful dairy operation since arriving from Southern California in 1989. Their Facebook page states Double J Dairy started Dec. 1, 1988, as a partnership between Jay teVelde, Sr. and Jay teVelde, Jr. Originally located in Chino, California, the dairy relocated to Visalia in June of 1989. The facility was an open-lot style dairy equipped to milk approximately 1,000 cows. By 1998, the herd expanded to 4,400 milking cows and was remodeled to freestall barns. Over the next two decades, teVelde, Jr. was able to expand his surrounding land base and is now self-sufficient in terms of forages while also diversifying into nut crops.

The teVelde dairy is north of the proposed annexation on Ave 328. Dairies typically own acreage around their dairy to provide a home for their dairy waste and to grow feed crops for their cows. So, it’s not unusual that teVelde owns substantial acreage nearby.

Jay, Jr. penned a paper for his CalPoly studies in 2016 mentioning some family history: “The family finds its dairy roots all the way back to George teVelde, the owner’s grandfather. George immigrated to the United States from the Netherlands in 1920. After arriving in California, George found a job as a milker in southern California. Over time George saved up enough to buy some cows of his own. He was fortunate to have the support of his boss, who helped him get started. George spent much of his working life adding to his business. Eventually George’s sons discovered their own passion for the dairy industry. One of his sons, Jay TeVelde, branched off and started his own dairy. Jay, like his father, spent most of (his) working life expanding his business. Also like his father George, Jay’s children discovered a passion for the dairy industry.”

Flurry of construction

This new annexation project is happening after a flurry of industrial construction took place in the past few years. Now the boom in industrial building activity has turned quiet in the past year. That can be seen by the shiny new 1.2 million square-foot spec building constructed by CapRock completed earlier this summer that sits empty for now. The building on Plaza north of Riggin is a close replica of two other Amazon buildings nearby. But Amazon remains mum on whether they would lease this massive building as well.

CapRock bought several sections of the land on the northeast corner of Plaza and Riggin in the 1990s from a farm family. They worked for a decade unsuccessfully trying to attract major logistic players to Visalia until they did. The big boom began when CapRock sold the corner of Plaza and Riggin to UPS for a Central Valley shipping hub. Many industrial firms use UPS for their daily package shipments.

At the time the paper reported “The Visalia UPS super hub’s location is critical, says CapRock’s Pat Daniels, because “only the Visalia/Fresno area can reach 99% of California with overnight shipments. The UPS Fresno facility is landlocked for growth and the current Visalia UPS terminal is quite small. On July 10, UPS pulled their permit for the shell of the building valued at $21.2 million. The general contractor is Layton Construction.”

CapRock set off the Visalia logistics boom, selling acreage to UPS that became a 450,000 square-foot package distribution hub that opened in 2020. That was followed by construction of the 1.1 million square-foot Amazon fulfillment center, operational as of 2021.  Between the two locations, 1,700 people are employed. That was followed by a second Amazon warehouse now operating.

As the paper has noted before, it took 60 years, 1958 to 2018, for the Visalia Industrial Park to get to 16.6 million square feet. But it may take just a few years, say 2018 to 2024, to double that square footage with all the million-square foot warehouses on tap. Looking at land, the district had 381 acres in 2018 and has already doubled that acreage today.

Not unlike the expansion of retail on Mooney Boulevard from 1980 to 2000, where we saw a steady move to open land to the south, the Visalia Industrial Park has seen a steady move north to more open land and adding larger parcels. The recent move north also includes a big retail push along Dinuba Boulevard replicating many of the retail tenants we see on South Mooney. Retail has followed a rapid construction of homes in the north in recent years. That in turn has been allowed by the city council decision to open its city limits on all sides. But that was held back for a while by a lawsuit requiring ag land mitigation – now an adopted policy. Tulare County’s Local Agency Formation Committee, which oversees municipal district boundaries, has been busy mostly approving new annexations in Visalia at nearly all of its recent meetings.

The opening of vast tracts of land for new industrial uses has its pluses and minuses, you could say. For Visalia, opening all these industrial areas promotes new jobs and tax dollars and growth of the city that may be positive or not. The tracks of land are owned by over a dozen major players allowing for competition on land prices. That helps keep locating a large complex here much cheaper to build than in the big metro areas of California.

There might be a slowdown in tenant decisions to locate here. But a number of spec builders are building in anticipation that the gravy train will continue in the next year or two and that their investment in building before the tenant shows up will pay off. That will require more land. It appears Mr. teVelde is joining the crowd

https://thesungazette.com/article/news/2024/10/17/visalia-tills-crops-into-industrial-plants/

H2B2 and 2G Energy Receive 2024 CHP Project of the Year Award for SoHyCal’s Renewable Hydrogen Impact

H2B2 USA LLC, a leading vertically integrated hydrogen solutions company, and 2G Energy, Inc., a global CHP solution provider, are elated to announce that their collaborative SoHyCal project has been distinguished with the highly coveted 2024 CHP Project of the Year Award by the Combined Heat and Power Alliance. The award ceremony will take place on Wednesday, September 25th at the National Summit on CHP held at the Westin in Alexandria, Virginia.

The SoHyCal project, managed by H2B2, represents a significant step forward in the quest for sustainable energy solutions in California. By producing renewable hydrogen through electrolysis powered entirely by renewable energy, SoHyCal is paving the way for a cleaner, more sustainable future. A key partner in this project is 2G Energy, whose state-of-the-art biogas engine plays a critical role in powering the hydrogen production process.

Pedro Pajares, CEO of H2B2, emphasized the importance of collaboration in achieving the project’s success: “Receiving this award is an incredible honor and a testament to the hard work and dedication of our teams. The SoHyCal project is more than just a technological achievement—it is a symbol of the progress we are making towards a sustainable future. We are proud to lead this effort and to have such a committed partner in 2G Energy.”

2G Energy’s cutting-edge biogas technology not only provides the necessary energy for the electrolysis process but also ensures that the entire operation remains carbon-neutral, a vital component in California’s broader climate goals. “Our partnership with H2B2 has allowed us to showcase the potential of biogas in large-scale renewable energy projects,” said 2G Energy, Inc.’s Managing Director Darren Jamison. “We are honored to receive this award and are committed to continuing our work in advancing renewable hydrogen solutions.”

This award recognizes the SoHyCal project as a pioneering effort in hydrogen production, showcasing the successful integration of H2B2 and 2G Energy’s innovative technologies, which not only meet current clean hydrogen demands but also set a foundation for future expansions to support California’s climate goals and inspire similar global initiatives.

About H2B2 USA LLC:

H2B2 USA LLC is a pioneering California-based company, at the forefront of renewable energy innovation with their groundbreaking renewable hydrogen production and integrated solutions to its customers across the whole hydrogen value chain and covering all business scales. H2B2’s customer-centric, one-stop-shop offering enables seamless and effective support through the entire lifecycle of a hydrogen production facility (including the identification of the opportunity, R&D, design, permitting, construction, and operation services for the exploitation of the hydrogen facility), and complete solutions for transportation, storage, and sale of renewable hydrogen.

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