By Faughn New Developments 0 Comments

Visalia builds toward more industrial space

The city of Visalia plans to open up more land for industrial development following a recent report. At its Feb. 3 meeting, the Visalia City Council heard a presentation by 4- Creeks consultants suggesting expansion of industrial park zoning south of Highway 198 adjacent to the airport as well as west of Highway 99 around the city wastewater treatment plant. Currently the industrial park is east of Highway 99 concentrated in the northwest corner of the city. The council voted 5-0 to take the next step to move the project forward that will require a full environmental impact report. Mayor Brett Taylor said he was generally in favor of expansion of industrial lands but not so much west of Highway 99 where the city has the sewer farm surrounded by farmland. The report suggested the city allow for a 248-acre solar farm to provide more renewable power to the community. The site would be near the wastewater treatment plant where the consultant also suggested the city consider new industrial zoning. City-owned land west of the 99 adds up to 1,475 acres that can be potentially developed, the study said. Again, that idea may not move forward.

There does seem to be support for setting up a so-called “reserve” industrial area adjacent to the airport and south of Caldwell stretching down to Highway 99. The report points to the major overhaul of the Caldwell interchange underway over the next 3-4 years.

The reserve area could be around 405 acres. Staff will have to suggest a trigger for opening this land. It will be years before new zoning is in place. The study makes the case that the city needs more available industrial land to meet demand, suggesting there is a low inventory of available space and empty land. The report calculates Visalia has 389 parcels totaling 3,543 acres of industrial space with just 945 acres remaining vacant in its sphere of infuence.

“Visalia could see a demand for up to 6.4 million square feet of industrial space by 2033,” 4-Creeks stated in its report. But the study does not seem to acknowledge that there are active industrial projects lined up to build at least that much right now. That includes the vacant CapRock building, a 1.2 million square foot spec “building 3” on Plaza Drive that has sat empty since completion last July. There is also a new 3.7 million square feet industrial park project north of Riggin and west of Shirk going through a final EIR now.

At the same time industrial building activity in the past year has slowed to a crawl in Visalia and across California. Now the city may lose the 635,000 square foot JoAnn fabrics distribution center, according to a recent letter the company sent to Mayor Taylor.

Consider that Visalia added 1.1 million square feet of industrial space in 2019, 2.4 million in 2020, 1.5 million in 2021, 1.6 million in 2022 and 1.9 mil in 2023 but just 330,000 square feet of industrial space was added in 2024. Things have slowed down. Nevertheless, councilmember Brian Poochigian said the city needs to plan ahead and adding more space in the future could attract new business to town – smaller entrepreneurial industrial projects that could find the area near the airport attractive.

By Faughn Economy • New Developments 0 Comments

Massive Visalia Industrial Park project ahead of schedule, no deal with Amazon

CapRock Partners, a Los Angeles based industrial real estate investor, announced this month that their Central Point III complex in Visalia at 1.27 million square-feet is ahead of schedule for construction.

Building 1, the first phase of a 2.7-million-square-foot, four-building industrial complex, has completed the tilting of the building’s concrete panel walls. Moving ahead of its original development timeline, Building 1 is now slated for completion in summer 2024, probably July. The building sits on 75 acres within CapRock Central Point III, part of CapRock’s larger 5-million-square-foot Central Point master plan in Visalia.

Bob O’Neill, senior vice president at CapRock Partners says the building is “designed to serve Fortune 100 corporations seeking a state-of-the-art industrial complex accessible to a large percentage of the West Coast’s population, CapRock Central Point III is drawing interest from leaders in logistics as well as food processing and manufacturing.”

Despite  rumors to the contrary, O’Neill says there is no lease in place with Amazon – the company that leased CapRocks other two large buildings constructed in the industrial park in the past few years.But O’Neill is optimistic the building will be spoken for soon with California’s strong economy, busy ports and the trend to re-shore companies manufacturing back to the US.

Visalia’s increasingly essential role in California’s industrial warehouse market and the broader U.S. logistics supply chain is drawing prominent corporations looking to benefit from the city’s unmatched connectivity, abundant land at relatively lower real estate costs, and robust supply of educated workers. UPS, Amazon, Ace Hardware, Smuckers, VF Corporation, FedEx, and International Paper, and others, have already established locations within Visalia’s industrial area.

“Visalia is grateful for the investment that CapRock has made in our community,” said Visalia Mayor Brian Poochigian. “CapRock has done big projects and Building 1 at Central Point III is another success in the making. Our city’s location gives us a logistical advantage when it comes to connectivity. That, coupled with our business-friendly environment and growing industrial park, makes Visalia ideal for projects like this.”

Building 1, located at 4001 N. Plaza Drive, is easily accessible to major Central Valley transportation including air, rail and highways, including State Route 99, which runs through the Central Valley and connects to major interstates I-5 and I-80. CapRock Central Point III’s position will allow its future tenants to reach over 50 million customers with one-day ground shipping, making it one of the only locations in the U.S. capable of reaching as large of a population base within the short timeframe.

At completion, Building 1 will feature 40-foot clear height, 274 dock-high doors and two ground-level doors. The cross-dock building will include approximately 6,600 square feet of office space, ample power, ESFR sprinklers and 890 auto parking stalls.

With a fully secured fenced yard, the property will provide drive-around access, a truck court depth of 185 feet, dedicated truck circulation and 542 excess trailer parking stalls.

“CapRock Partners is an experienced developer and builder of large-scale industrial warehouse facilities,” said Mike Fowler, executive managing director at JLL.

“The firm’s talented team is bringing its capabilities and expertise to deliver a world-class complex that will improve the overall efficiency of the U.S. supply chain, serve leading corporations and provide local employment and economic opportunities for Visalia and the Central Valley.”

https://www.visaliatimesdelta.com/story/news/2024/01/24/visalia-industrial-park-project-ahead-of-schedule-no-deal-with-amazon/72323793007/

By Faughn New Developments • Tourism 0 Comments

Merced Mall is literally on the way up

MERCED, Calif.  – The Merced Mall is on the rise, not only in terms of new businesses but literally after the city announced over the weekend that investors are discussing proposed building elevations.

Citivest, the party responsible for financing the Sears Renovation Project, says the 86,000-square-foot Sears box building is being renovated and re-positioned. Site plans published Saturday also show proposed building elevations to increase the height of the current buildings.

Management says leases for the space have been signed with Burlington, Five Below, Ulta, Petco, Rack Room Shoes, Bath & Body Works and Mattress Firm. Aspen Dental will also be located on one of the planned free-standing pad buildings.

The company says they expect the new stores to open in the fourth quarter of this year.

The new stores announced in January will be joining Boot Barn and Mocha Boba, which have also been announced as moving into the Merced Mall.

https://www.yourcentralvalley.com/news/local-news/merced-mall-new-businesses/

By Faughn Health/Medical • New Developments • Quality of Life 0 Comments

County opens new juvenile center

Kings County announced the grand opening of the Behavioral Rehabilitation Academy New Chance Hub, or BRANCH. This state-of-the-art facility is designed to provide comprehensive rehabilitation services to young people, empowering them to overcome challenges and build brighter futures.

“I am thrilled to witness the grand opening of The BRANCH,” said Leonard A. Bakker II, Chief Probation Officer, Kings County Probation Department. “This cutting-edge facility represents a significant step forward in our commitment to providing young people with the tools and support they need to succeed. By offering comprehensive rehabilitation services, we are empowering these individuals to overcome adversity and build brighter futures. The BRANCH is a beacon of hope for our community.”

The BRANCH offers a holistic approach to rehabilitation, combining educational, therapeutic, and rehabilitative services, the County stated. The goal is to help participants develop coping skills, improve mental health, and successfully reintegrate into their communities.

https://hanfordsentinel.com/news/local/crime-and-courts/county-opens-new-juvenile-center/article_d04f0efe-bcc5-11ef-b990-133930ebf22f.html

By Faughn Economy • Workforce 0 Comments

Governor Newsom today in Stanislaus County — previews 2025-2026 state budget and receives California Jobs First Plan for North San Joaquin Valley, including Ag contributions

What you need to know: Governor Newsom continued his statewide California Jobs First tour today to outline a first-of-its-kind, bottom-up economic vision for California’s future, receiving the regional plan from local leaders in the North San Joaquin Valley. The Governor also previewed toplines of this year’s state budget — a balanced spending plan that makes government more efficient, increases accountability, and improves the safety, health, and well-being of Californians.

Stanislaus County, California – Governor Gavin Newsom, as part of his ongoing statewide California Jobs First tour, today received the North San Joaquin Valley’s regional economic plan from community leaders representing San Joaquin, Stanislaus, and Merced counties. The plan is one of 13 regional plans that will make up the upcoming California Jobs First Economic Blueprint.

Governor Newsom also previewed his 2025-26 state budget proposal by outlining the state’s continued plans to support robust economic growth, high-paying jobs and career development, and strong accountability measures to address housing, homelessness, and mental health.

“California is not only dominating but paving the way for the future of jobs and the American economy, with local homegrown economic plans for every region of our state. With a balanced budget and key investments maintained for the upcoming fiscal year, we are well-positioned to continue the forward momentum we have created. California remains the standard bearer for our nation, and we’re looking forward to another strong year ahead,” said Governor Newsom.

The California Jobs First Economic Blueprint will guide the state’s investments in key sectors to drive sustainable economic growth, innovation, and access to good-paying jobs over the next decade. The complete Economic Blueprint will be released in the coming weeks, along with a grant solicitation for a portion of the remaining $120 million over three years in competitive funding to support “ready-to-go” projects aligned to the state’s strategic sectors, ensuring that every region across California continues to play a critical role in the sustainable growth of the world’s fifth largest economy.

Made up of ten key industry sectors, this framework will help streamline the state’s economic, business, and workforce development programs to create more jobs faster.  The state’s thirteen economic regions engaged more than 10,000 local residents and experts who collectively identified these sectors as key to driving local economies into the future.

Today, leaders in the North San Joaquin Valley region presented their regional plan to the Governor and provided information about their key economic sectors.

  • Advanced Manufacturing, including building materials, mobility technologies, and measurement and testing products
  • Clean Economy, particularly solar energy, green hydrogen, biofuels, and carbon management, an emerging sector with enormous growth potential, driven by the increasing demand for carbon capture and sequestration technologies.
  • Bioeconomy, a forward-looking sector that is transforming waste streams from biomass (such as agricultural and forestry residues, municipal solid waste, and food processing byproducts) into valuable bioproducts such as fuels, plastics, chemicals, solvents, fabrics, polymers, food additives, and alternative proteins.

A balanced budget and a more efficient government

Continuing to deliver key investments and responsible fiscal management, Governor Newsom previewed the toplines of his 2025-26 state budget proposal — a balanced budget that emphasizes fiscal stability and lean and efficient government. The full budget release, accompanied by a briefing led by the Department of Finance, is scheduled for Friday, January 10, 2025.

The Governor’s $322.2 billion proposal includes $228.9 billion in general fund spending. The proposed budget is fully balanced with no deficit and projects $16.5 billion in additional revenue above the 2024 Budget Act thanks to a stronger economy, stock market, and cash receipts. It includes savings from the elimination of 6,500 government positions, resulting in $1.2 billion in savings over two years, alongside operational efficiencies like reduced travel budgets, printing costs, and IT modernizations that further reduce costs by $3.5 billion.

While introducing no cuts to core programs, the proposal maintains transformative initiatives that include the full implementation of Universal Transitional Kindergarten (TK), expanded after-school and summer programs, and Universal School Meals.

Investments focus on education, economic growth, public safety, and accountability. The full Governor’s budget proposal will be released on Friday, January 10, 2025.

https://plantingseedsblog.cdfa.ca.gov/wordpress/?p=28513&utm_source=chatgpt.com

By Faughn New Developments • New Location 0 Comments

Breaking New Ground in Madera!

Breaking New Ground in Madera!
We are excited to celebrate the groundbreaking of Stock Five Development, Inc.’s latest project, a future 7-Eleven in Madera, CA! This development represents a new opportunity for the community, bringing convenience, jobs, and growth to the area.
We were honored to have key individuals join us for this milestone, including those who played a vital role in the first phase and those who continue to drive this project forward. A special thank you to Cecilia Gallegos, Mayor of Madera, for her support, and Sterling Graham, President of Head Waters Building Group, for sharing a few words during the ceremony. Your contributions are truly appreciated!
This project is more than just construction, it’s about enhancing the community and creating a positive impact for years to come. We are grateful to the City of Madera and all of our partners for their dedication and collaboration. We look forward to seeing this vision take shape!

https://www.instagram.com/elite_team_offices/p/DF81hteSMT4/?img_index=1

By Faughn New Developments 0 Comments

New military lab at Edwards boosts national security, E. Kern economy

Eastern Kern is expected to benefit economically from a new, state-of-the-art engineering lab expected to improve the area’s workforce training capabilities along with U.S. military readiness at Edwards Air Force Base. The U.S. Air Force announced Thursday its new Flight Test Engineering Lab opened late last year after a series of delays and contract modifications that pushed back its debut by eight months and raised its price tag 13.6% to reach $41.35 million.

The Air Force said in a news release the lab was designed to improve the testing and integration of critical systems, specifically in electro optics/infrared sensors and long-range cyber-warfare data link capabilities. The installation will also help the Air Force develop what it described as digital twin tools accelerating creation of future combat capabilities, it said.

“As military technology continues to evolve, the FTEL stands as a critical hub for the next generation of weapons and systems, paving the way for the development of more effective, adaptable tools to safeguard national security,” it said in the release.

A senior official at the base, Paul Waters, director of the 412th Test Engineering Group, emphasized the lab’s importance in helping meet the evolving needs of the U.S. military. He said its development and testing capabilities will help the base enhance the accuracy of sensors, improve data communication and integrate flight test data with advanced modeling and simulation.

“These tools will not only accelerate our development processes but also help us stay ahead of rapidly advancing global threats,” he stated in the release.

“By refining advanced sensors, data links and validated models, we are preparing our forces for an increasingly complex global security environment,” he added.

The Air Force plans to leverage the FTEL’s capabilities to “accelerate the training and development of our workforce,” Waters stated.

“Three state-of-the-art training rooms allow us to accelerate the development (of) our young engineers,” Waters added.

Eastern Kern has scored several economic successes in recent years. The most recent is a $2 million partnership paid for by Congress to establish an aerospace innovation hub intended to smooth the flow of technology developed at Edwards and China Lake Naval Air Weapons Station to local industry.

https://www.bakersfield.com/news/new-military-lab-at-edwards-boosts-national-security-e-kern-economy/article_c5b26266-ecbd-11ef-84df-e73ad871d1ea.html?utm_source=bakersfield.com&utm_campaign=%2Fnewsletters%2Fbusiness-headlines%2F%3Femail-scrape%26-dc%3D1739894423&utm_medium=email&utm_content=headline

By Faughn Economy 0 Comments

Manteca Building Tops $2.477 Billion In 5 Years

Manteca construction — based on city issued permits — hit a record $757 million in 2024. The 5,205 permits included 1,306 new single family home starts and the Manteca Crossing shopping center anchored by what will be Manteca’s second Food 4 Less breaking ground at Atherton Drive and Airport Way. Keep in mind the figures represent only private sector construction activity.

If you toss in two major Manteca Unified projects that broke ground that include two-story classroom buildings at the East Union and Manteca high school campuses — along with several major city street projects, construction activity started in Manteca last year pushed the $850 million mark. That reflects just the value of the construction.

Assuming the 1,306 homes will reflect average selling price of new homes built in Manteca during 2023, buyers will end up spending $875 million collectively buying the homes started in 2024. The impact of the new construction — and the ongoing economic activity 1,306 new households — are even higher. Economists apply a 7-fold multiplier effect on the overall economy from every $1 in new construction.

That represents not just the wages that are spent paid to those who mine, produce, and build construction projects but also auxiliary benefactors such as jobs in mortgage lending, title offices, and such. Some of that clearly stays in the Manteca area. The real big impact locally is the ongoing annual income of the 1,306 new households and the effect it will have on the Manteca economy.

The median household income in Manteca was $89,000 at the start of 2024.

That’s said, the buyers of new homes tend to have higher household incomes.

Certain segments of Manteca south of the 120 Bypass based on tracking of mortgage data, reflects new neighbors where the household income exceeds $100,000. Taking a lowball assumption of $90,000 for the income of each new household that will occupy the 1,306 homes, the overall household income will easily top $117.5 million on an annual basis.

Granted mortgage payments plus taxes and utilities will eat up a good share of the $117.5 million. But beyond that spending for everything from food, gasoline, entertainment, home improvement, furnishing, clothing, and such makes its way into the local and regional economies. During the past five years, Manteca has issued 22,701 permits for everything from spas and swimming pools to massive distribution centers, and apartment complexes.

The overall figure is $2.477 billion. That includes $376 million in 2020, $391 million in 2021, $528 million in 2022, $424 million in 2023, and $757 million in 2024. To put that in perspective, it took 13 years for overall Manteca building permit activity to reach a combined $1 billion between 1998 and 2010. Manteca had a combined $1.18 billion just in the past two years. The record for the biggest permitted project in Manteca still stands. That was $180 million for the 500-room Great Wolf hotel and indoor water resort that opened on June 29, 2021.

https://www.mantecabulletin.com/news/local-news/manteca-building-tops-2477-billion-in-5-years/