Economy – Page 6 – Central California

September 12, 2022 By Faughn Economy • Energy 0 Comments

San Joaquin agency to receive $3.9M for hybrid electric buses

STOCKTON — San Joaquin Regional Transit District was awarded $3.9 million in grant funding from the Federal Transit Administration to expand its hybrid electric bus fleet. The expansion will allow RTD to enhance its service in underserved and marginalized neighborhoods in Stockton, the agency said. RTD is one of 12 local agencies to receive a share of more than $1.175 billion from the FTA’s Low or No Emission Vehicle Program, also known as a Low-No grant, designed to help transit agencies modernize their fleets with advanced technologies to improve air quality by reducing greenhouse gases.

The Low-No grant will assist in purchasing five new Gillig hybrid electric buses allowing RTD to expand and increase the service frequency of routes 525 and 576. These routes currently serve areas identified by the United States Department of Transportation San Joaquin County Census Tract as Historically Disadvantaged Communities.

Investments in these communities align with President Biden’s Justice40 Initiative and the San Joaquin Valley Air Pollution District’s mission of improving Central Valley residents’ health and quality of life. “It is important we continue to invest not only in cleaner vehicles but also in the infrastructure needed to support them,” Senator Alex Padilla said in Tuesday’s media statement. “That is why I will continue to advocate for more funding to transition to buses that are better for our environment and public health.”

https://www.lodinews.com/news/article_b7cca754-1dd7-11ed-be94-2350439e491e.html

August 15, 2022 By Faughn Distribution • Economy 0 Comments

Patriot Rail to establish rail district in central California

Patriot Rail CEO John E. Fenton is hoping the creation of a new rail district in central California will be a boon not only for his company but also for agricultural producers in the region. Patriot Rail is part of a public-private partnership with local leaders to develop a rail district for central California. Patriot Rail will lease approximately 6,500 feet of track and related property to Merced County, and the company will invest $1.2 million to increase rail capacity there at the Castle Commerce Center. The lease’s term spans 20 years, but it could be renewed in subsequent years. Patriot Rail interchanges with BNSF (NYSE: BRK.B), meaning that agricultural producers will have expanded access to the West Coast ports as well to the domestic market. When local economic developers were pursuing options for a rail district, BNSF brought Patriot Rail to the table, according to Fenton. “We think this is a great opportunity for the state of California to make their farmers even that much more competitive around the world,” Fenton told FreightWaves.

Patriot Rail’s involvement in the rail district was in response to an area shipper’s needs. Tomato products producer Morning Star and its warehousing provider needed to expand their packaging capabilities, and so they were looking for an area to grow, according to Fenton. Locations such as Modesto, Stockton and Sacramento were already at capacity, so expanding production in the San Joaquin Valley was the next natural location, Fenton said. “The San Joaquin Valley is one of the agricultural centers of the world. And there’s a lot of tomatoes that come out of that region,” Fenton said. Fenton hopes to have Patriot Rail’s assets ready by May 1, which is when the pack season starts for Morning Star. The pack season involves 100 days of operations running 24/7. In that time, Morning Star produces about 9,000 cans of tomatoes per minute, Fenton said.

According to the California Tomato Growers Association, tomato producers in the state processed 11.3 million tons of tomatoes in 2020, and that production has a value worth $887 million. Other agricultural products in the region include almonds, wine and cheese. According to the Almond Board of California, the counties of Stanislaus, Merced and San Joaquin in central California produced 921 million pounds of almonds during the 2020-2021 crop year, representing nearly 30% of overall California almond production.

Although Patriot Rail and others aren’t sure yet how many carloads might come out of the rail district, the rail district provides shippers with the opportunity to build warehouses and expand production. “We are meeting with all the agricultural shippers in the region. We want them to have a say in what kind of services they’re looking for. … The demand is really high, and we’re going to start to piece that together. The first thing is to really understand what the demand will be so we can build the facility and plan the facility in the right way,’ Fenton said. “We’re still scoping that [demand] but over time, we think it will become a very large rail district in the state of California.”

The agreement with Merced County was executed with Patriot Rail subsidiary Foster Townsend Rail Logistics. “Castle Commerce Center has enormous potential and is quickly becoming a site of regional, national and international significance,” Merced County Supervisor Daron McDaniel said in a release last week. McDaniel’s district includes Castle. “Patriot is a major part of our vision for Castle, and we’re looking forward to working with the partners they bring to help expand this growth and spur future job creation.”

https://www.freightwaves.com/news/patriot-rail-to-establish-rail-district-in-central-california

June 7, 2022 By Faughn Economy • New Developments 0 Comments

Madera County Receives $450K Grant From Caltrans

Madera County is pleased to announce the receipt of a Sustainable Transportation Planning Grant award of $450,000 from the California Department of Transportation (Caltrans). The award will be used to develop a Transit Area Specific Plan that will establish a vision for the phased implementation effort to relocate the San Joaquins Madera Station and construct the adjacent future High-Speed Rail (HSR) station.

The plan will lead to the creation of new intermodal transit options and future transit-oriented development along the Avenue 12 corridor in southeastern Madera County. The project is consistent with and supportive of the goals of the Caltrans Sustainable Transportation Planning Grant Program, Senate Bill 1 requirements, the Madera County General Plan, the Madera State Center Community College Specific Plan (SCCCSP), Federal Railroad Administration(FRA) requirements, as well as the HSR Authority’s programmatic and project environmental documents.

Madera County will do the planning work in partnership with the City of Madera, Madera County Transportation Commission, San Joaquin Joint Powers Authority (SJJPA), California High-Speed Rail Authority (CHSRA), and Caltrans. This effort will guide the design and land-use in the vicinity of the station area as well as enable Madera County to promote economic development, encourage station area development and enhance multi-modal access connections between the station, the City of Madera, Madera Community College, and other surrounding communities throughout Madera County and northern Fresno County. “This is an exciting step towards enhancing our current rail connectivity. I believe this is imperative to the success of our cities, our County, Madera Community College, and the residents we serve through smart transit-oriented development,” said Madera County Board of Supervisor Brett Frazier following Monday’s announcement.

https://sierranewsonline.com/madera-county-receives-450k-grant-from-caltrans/

June 6, 2022 By Faughn Economy • New Developments 0 Comments

California one step closer to establishing high-speed rail with Silicon Valley to Merced line

After years of anticipation and developments, the state is one step closer to establishing a high-speed rail connection between Northern and Southern California. This week, California High-Speed Rail Authority officials approved a 90-mile stretch set to run from San Jose to Merced. This section would begin at San Jose’s Diridon Station and connect to a Central Valley site currently under construction. This connection will cut travel time between the two regions from roughly three hours to one hour. San Jose Mayor Sam Liccardo says he sees the developments as good news for the local economy. “Completion of this critically important high-speed rail project helps the state expand economic opportunity and affordable housing, two critical goals for all of us,” he said.

Monterey County resident Stefan Mora says he often travels up and down the state for work and believes the high speed rail is a good alternative for people who spend a lot of time behind the wheel. “It’s a great way to travel,” he said. “You’ll save gas with the prices it’s at right now, and save plenty of time not dealing with traffic.” High-speed rail officials say this development helped achieve environmental clearance for nearly 400 miles of the project’s 500-mile Phase 1 alignment from San Francisco to the Los Angeles and Anaheim area. This includes a stretch from Merced to Palmdale, and Burbank to Los Angeles — a section cleared earlier this year.

The project is also set to “modernize and electrify” an existing rail corridor between San Jose and Gilroy, allowing for high speed rail and Caltrans services. This alignment includes more than 15 miles of tunnels through the Pacheco Pass in the Diablo Range. Gilroy Mayor Marie Blankley is calling it “the next most significant transit hub” behind San Jose. “Gilroy Transit Center is very much ready for this to happen,” Blankley said. Salinas resident Christian Lopez says he hopes the high speed rail will make for a better traveling experience. “Maybe it can help take vehicles off the freeways and they can lessen how crowded it is at airports,” he said. Construction for the high-speed rail is ongoing along 119 miles in the Central Valley at 35 active job sites. “The authority is poised to make the vision of high-speed rail in the Bay Area a reality,” Authority CEO Brian Kelly said. “We look forward to continued collaboration with our federal, state and local partners to advance the project in Northern California.”

https://www.thecalifornian.com/story/news/2022/04/29/california-closer-high-speed-rail-silicon-valley-to-merced-line-bullet-train-san-jose-sf-to-la-next/9578137002/

June 6, 2022 By Faughn Economy 0 Comments

VISALIA APARTMENT SALE EMBLEMATIC OF CENTRAL VALLEY RENTAL MARKET

An apartment sale in Visalia depicts the interest outside investors have shown in the Central Valley real estate market — particularly in the multi-family sector. The Mogharebi Group brokered the sale of ReNew, a two-story 128-unit apartment complex at 3315 Lovers Lane. The apartment complex built in 2008 sold for $30.65 million to a private Santa Barbara investment group from FPA Multifamily, according to a press release from the brokerage. There are 16 buildings on 6.76 acres, representing 18.9 units per acre with one-, two- and three-bedroom floor plans. The complex also features a swimming pool, recreation room with wet bar, laundry facilities, clubhouse, spa and reserved parking.

“The Central Valley has long been thought of as strictly an agricultural area, but that is only one part of its economic story,” said Otto Ozen, executive vice president for The Mogharebi Group. “Government and healthcare are large and growing economic drivers, which combined with the region’s lower cost of living has resulted in an in-migration of people from higher-cost coastal cities. Yet new construction has not kept up with demand. The strong regional economy and steady population growth combined with the high barriers to entry, has not been lost on investors.”

“Not only did we help the seller find ReNew a few years ago, but after 24 months, we were able to sell it for 50% higher price, which is indicative of growing investor interest for properties in the Central Valley,” Ozen said.

From Sacramento to Bakersfield, the region has 1,055 multifamily properties of 50 units or more. Over the last two years, 445 of those properties have traded hands, with The Mogharebi Group brokering 10% of those transactions, according to the release. Over those two years, the average sales price per unit increased 21% from $111,275 to $135,444. High end apartment complexes experienced the highest increases, growing 28% from $228,465 to $292,412.

https://thebusinessjournal.com/visalia-apartment-sale-emblematic-of-central-valley-rental-market/

June 6, 2022 By Faughn Economy • New Developments 0 Comments

High-speed rail between San Jose, Central Valley receives final EIR certification

High-speed rail between San Jose and the Central Valley took a step closer to becoming reality after the final environmental impact report was certified Thursday. In a unanimous vote, the High-Speed Rail Authority Board of Directors approved the 90-mile section stretching from Diridon Station in San Jose to Merced. “Today’s approval represents another major milestone and brings us one step closer to delivering high-speed rail between the Silicon Valley and the Central Valley,” Authority CEO Brian Kelly said in a statement. “The Authority is poised to make the vision of high-speed rail in the Bay Area a reality.” The approval moves the project closer to being “shovel ready” once funding becomes available, officials said. Currently, construction is underway between Madera County and Bakersfield in the Central Valley.

Once high-speed rail is complete between San Jose and Fresno, officials said the travel time between the two cities would be one hour, compared to three hours by car. “Completion of this critically important high-speed rail project helps the state expand economic opportunity and affordable housing, two critical goals for all of us,” San Jose Mayor Sam Liccardo said. In its decision, the board selected “Alternative 4” out of the four alignments studied. As part of the project, the existing rail corridor between San Jose and Gilroy would be electrified, allowing for both high-speed rail and Caltrain service. From Gilroy, the rail line would head east into the Central Valley, with 15 miles of tunnels through the Pacheco Pass in the Diablo Range. “Next to San Jose, Gilroy will be the next most significant transit hub on this stretch,” Gilroy Mayor Marie Blankley said, noting the city’s transit center is “very much ready for this to happen.”

Despite years of delays and cost overruns, the project, which aims to connect the Bay Area, Central Valley and Southern California with high-speed trains, continues to have high support. A recent poll by the UC Berkeley Institute of Governmental Studies found Californians back high-speed rail by a five-to-three margin. According to officials, 400 miles out of the 500 mile alignment of the system have been environmentally cleared. Sections that remain to be cleared include San Francisco to San Jose, Palmdale to Burbank and Los Angeles to Anaheim. The agency’s board of directors said it would consider final EIR certification for the San Francisco to San Jose segment this summer.

https://www.cbsnews.com/sanfrancisco/news/high-speed-rail-san-jose-central-valley-final-eir-certification/

June 6, 2022 By Faughn Economy • Top Stories 0 Comments

States with the biggest agriculture industry

Most Americans don’t recognize just how much the agriculture industry affects their everyday lives. The connection is not solely confined to your grocery store, either—industries affected by the agricultural sector include food/beverage service, forestry, and textiles, just to name a few. Less than 2% of the American workforce was directly employed in agriculture in the year 2000, a drastic transition from 40% a century earlier. To improve consumer’s relationships with this industry, organizations like Future Farmers of America and 4-H help to bridge the gap between consumers and farmers and fight agricultural illiteracy from youth.

Stacker ranked each U.S. state by the size of its agriculture industry. To come up with the list, we analyzed USDA data including 2018 state agricultural overview reports and commodity values from 2012 ranked by the total value of agricultural products sold. We also took a look at the economic and environmental impact of the agriculture industry for each state, based on data from the National Association of State Departments of Agriculture, as well as how the industry affects residents and what aspects about that state make it ideal for agriculture.

States like Alaska and Hawaii generated a wide range of unique agricultural commodities due to climates that differ from the rest of the country. States such as Texas and Wisconsin produced crops and livestock like cotton, cattle, and dairy cows known worldwide for their quality. Of course, there are always the corn belt states of Indiana, Illinois, Iowa, Missouri, Nebraska, and Kansas that provide a majority of the country’s corn supply thanks to level landscapes and nitrogen-rich soil. Keep reading to see where your state’s agriculture industry ranks.

https://www.kget.com/news/state-news/states-with-the-biggest-agriculture-industry/

February 12, 2022 By Faughn Economy 0 Comments

Real estate forecast spotlights uneven recovery

Optimism sounded from every corner of Bakersfield’s real estate industry at an annual outlook event Tuesday, though some sectors were giddier than others as the pandemic has uneven effects on different kinds of local property. Bullishness led among housing specialists — both multifamily rental and single-family — followed by industrial property, the long-time local favorite. The office market came off as weaker than the rest but, like retail, may have fared better than had been expected. At heart an economic update, the Institute of Real Estate Management’s 10th annual forecast breakfast focused on popular concerns such as rising inflation, interest rates and construction costs. Speakers pointed to continuing challenges such as supply chain problems, but most characterized local and national business activity as having rebounded from the economic wreckage of 2020 and in some respects surpassed 2019’s peak.

Among the biggest news of the day was word that institutional investors have entered the local rental housing market after historically ignoring the Central Valley. Multifamily real estate specialist Marc Thurston with ASU Commercial said during the event, and elaborated by phone afterward, that two of three buyers who recently came in on private jets have since secured property locally. But because they couldn’t find any built units for sale, he added, both plan to develop new projects. He declined to identify the investors, saying only they were attracted to the fact that some apartment rents in Bakersfield recently topped $2,000 per month, and that they were impressed by the relative openness of the local economy. With the citywide occupancy hovering at historic lows, he said there will be unmet demand even if each project totals as many as 1,000 new rental units. “It doesn’t begin to address the shortage that we have here,” he said.

A similar imbalance is at play in the single-family market, where new President Anna Albiar of the Bakersfield Association of Realtors noted a shortage of inventory has coincided with strong demand — “the recipe for increasing prices,” she said. Kern’s housing affordability, defined as the capacity of a local resident of average income to afford a home selling at the area’s median price, is 45 percent. Albiar pointed out that compares favorably with the statewide rate of 24 percent. Albiar dismissed comparisons to the 2006-07 housing bust, saying buyers back then had far less “skin in the game” when borrowing. New homeowners these days put more money down and so “it’s harder for them to walk away and leave that investment,” she said. Albiar added that although interest rates are expected to rise, they remain historically low.

President and CEO A.J. Antongiovanni of Mission Bank, delivering the event’s highest-level economic overview, said the national economy is exceptional and that spending is exceeding 2019 levels. He called the pandemic so far a “bump in the road,” though he observed that prices and wages are up “and I don’t think that’s temporary.”

Industrial property specialist Oscar Baltazar with Colliers International delivered an upbeat market assessment, saying demand is strong lately and predicting more investors will come north from Southern California. The metro area’s industrial property vacancy rate fell from 4.9 percent in 2020 to 3.2 percent in 2021, he said, as the market expanded more than 3 percent to 63 million square feet. He listed new projects including a 3-acre meat processing facility coming to southeast Bakersfield and a new transmission manufacturing plant. “I believe that rents will continue to go up, construction will go up,” Baltazar said.

Office specialist Matthew Starr with ASU Commercial challenged the notion office space “is dead” in the face of the mass migration to work-from-home arrangements. While there’s likely to be a combination of remote work and in-person labor, he said, company culture is generally created in the office, and work-life balance suffers when business is done from the kitchen. He added that employers appear to be reversing the trend of dedicating less office space per employee. Demand is steadily recovering, Starr said, and there’s no sign of a flood of vacancies ahead. Although oil industry tenants may pull back because of state regulation, he said demand has diversified among users like health care, government, financial services and agriculture. Starr predicted high construction costs will limit the pipeline of new projects and the local vacancy rate is unlikely to top 12 percent, having recently surpassed 11 percent.

Retail broker Vince Roche at Cushman & Wakefield highlighted bright spots like greater integration of food in shopping centers, a dip in online shopping in 2021 and recent local investments by big national retailers like Dutch Bros., Aldi and Raising Cane’s. He acknowledged challenges to tenants like movie theaters, health clubs and museums but pointed to promising adaptive reuse projects like the new Amazon distribution hub at the former Kmart on Wilson Road. Another focus was the Westside Parkway, which he said may have the largest benefit of any local public works project in decades in the way it allows shoppers to get to goods and services much more quickly and efficiently.

https://www.bakersfield.com/news/real-estate-forecast-spotlights-uneven-recovery/article_7823253a-789e-11ec-a517-13c404b78132.html

February 11, 2022 By Faughn Economy • Energy 0 Comments

CSUB in line for $83 million for energy innovation center in governor’s proposed budget

BAKERSFIELD, Calif. (KGET) – Gov. Gavin Newsom announced his new proposed 2022-23 budget Monday morning, and it contains a nice plum for Bakersfield – a plum that could be worth a third of a billion dollars.

What’s the purpose of this seeming windfall? Addressing climate change and the vulnerable Kern County economy. The Kern County oil industry has faced unprecedented challenges over the past two-plus years as Sacramento has worked toward ambitious climate change goals.The number and severity of recently imposed restrictions on petroleum extraction by the state make it clear where this is all headed. That of course prompts the question – where does that leave the Kern County economy, which relies so heavily on the oil industry? We got an important part of the answer Monday when Newsom – in revealing his proposed 2022-23 state budget – announced his intention to give $83 million to CSU Bakersfield to research new directions in energy development as the state reduces its use of fossil fuels. “$537 million will be going to the CSU [system] with the support of the legislature,” Newsom said. “[Of that] $304 million [is] ongoing, and then new dollars [would be coming] as part of the budget…. On- time money, including a Bakersfield innovation center. Bakersfield, in Kern County, [is] at the center of this transition to low carbon, green growth. (It’s a) remarkable CSU [campus]. …. $83 million investment there.”

CSUB President Lynnette Zelezny said the innovation center will help chart the energy future of the state – and the nation. “We are here in the epicenter of energy for the state, for the nation,” she said. “This the right place for that work to happen. So what we’ve proposed was actually a building that will be at the center of research and development for energy innovation. I really do appreciate his trust in moving this forward. He has also given us money for additional faculty that will come to be part of this research center.”

Fourty-four new faculty, to be exact, taking up residency in the California Energy Research center – 74,000 square feet on three levels, with 17 laboratory spaces, including a fabrication lab. No groundbreaking date has been set. The funding is not assured. The governor said higher education will play a crucial part of the state’s plan to address climate change. “We’re very mindful,” Newsom said, “that if we’re going to sprint in this transition we’ve got to support a thoughtful framework.”

The governor’s proposed budget would also add $250 million to help workers train for and find new jobs outside the oil extraction industries. Zelezny says she expects that several institutions of higher learning will participate in that aspect of the plan. All together, that’s a third of a billion dollars that’s being directed toward helping Kern County move away from something that’s been part of its economy and its culture for more than 125 years.

https://www.kget.com/news/local-news/csub-in-line-for-83-million-for-energy-innovation-center-in-governors-proposed-budget/

January 3, 2022 By Amanda Chandler Economy 0 Comments

KINGS COUNTY ECONOMIC FORECAST: A NEW ERA OF GROWTH

For Kings County, 2021 brought a significant economic rebound from the tumultuous 2020. According to Kings County Economic Overview report for 2021 produced by JobsEQ, over the year ending in the second quarter, employment increased 6.4% in the region. Average annual wages per worker in the county was $52,775 as of Q2, a 9.3% increase in the region over the preceding four quarters. Over the year, employment in Kings County expanded by 419 jobs. Mining, quarrying, and oil and gas extraction is projected to be the fastest growing sector in the region with a 2.7% year-over-year rate of growth. With the shock brought to the medical industry in the wake of the Covid-19 outbreak, it is no surprise that sector is expected to see the most growth in terms of sole job numbers.

It is forecast that over the next year, the number of jobs for health care and social assistance will grow by more than 209; more than 50 jobs for agriculture, forestry, fishing and hunting; and more than 37 jobs for accommodation and food services. Lance Lippincott, director of economic and workforce development for the Kings County Economic Development Corporation, said that commercial retail took the biggest hit from the pandemic, but that that larger industries such as ag are expected to continue with strong performance. Central Valley Meat Co. will expand its processing plant in Hanford by nearly 130 acres next year, expanding is processing capability from abut 1,500 cattle a day to about 4,500 a day. In phase 2 of the expansion, a new 103,000 square-foot processing facility will be added along with a 187,000 square-foot freezer. Lippincott said that one of the biggest economic boosts for the region in 2021 was new cannabis businesses, including the Deli by Caliva Dispensary in Hanford.

The industry is expected to keep growing with more dispensaries coming online in 2022. Though its had a long local history of “will they or wont they?,” smart car manufacture Faraday Future held a job fair early in November to gear up for production at its Hanford facility in 2022. The electric vehicle startup tech company is expected to bring more than 1,300 jobs to the city. On the manufacturing side, agricultural and specialty formulator and distributor Helena Agri-Enterprises will be building a facility in Lemoore’s industrial park. The state-of-the-art facility will cover over 130,000 square feet and have some retail space at the front. In the real estate neighborhood, Lippincott said the EDC is seeing larger projects requesting site selections that cover nearly 400 to 500 acres. “We are starting to see that movement up from Los Angeles and from the Bay Area to more inexpensive land in the Central Valley,” Lippincott said. Lippincott said that several residential housing projects have been approved in the county for up to 1,000 homes.

A shrinking inventory of available spaces for both commercial and industrial sectors is a positive sign for business, Lippincott said. Though Kings County does have a cost of living that is almost 7% higher than the nation’s average, it is still cheaper than many other regions in California. “This area is incredibly affordable on the U.S. average, and in the upcoming year, that’s going to channel a lot of growth to us and the Central Valley as a whole,” Lippincott said.

At the Kings County Chamber of Commerce, President and CEO Benjamin Kahikina said some of the biggest projects for 2022 are in development and housing growth, especially in regard to affordable housing sustainability. With the residential growth projected for the upcoming year, Kahikina said he expects new businesses to follow. Kings County is trying to annex land for a project that would extend the boundaries of Kettleman City.

Kahikina said that the chamber is in contact with people who are interested in developing businesses, but aren’t familiar with the process. Chamber officials are trying to convince more businesses to open up a brick-and-mortar store to revitalize downtowns such as Lemoore’s. There will be an effort to connect with newer and younger entrepreneurs that may be operating out of their home. “We are excited to bring everything we have learned from the pandemic in 2020, and going into 2021, and to bring that in to 2022 and offer new resources and start connecting with younger audiences as well.”

https://thebusinessjournal.com/kings-county-economic-forecast-a-new-era-of-growth/

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