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/

By Faughn New Developments • Workforce 0 Comments

Inland Port concept to flow more trade to Central Valley, cut pollution

A collaborative consortium of California port authorities, county governments, transportation agencies, air pollution control districts have joined forces to analyze the feasibility of developing a new, intermodal rail spine to connect seaports to key markets via the Central Valley. The plan is to develop a network of three or four “Inland Ports” in Central Valley cities with built-in access to freight rail and trucking routes. By developing a better intermodal system of moving freight, where trucks are used to transport cargo containers from ships to rail and then from rail to their destination instead of driving across the state, the project promises to cut greenhouse gasses, significantly improve air quality, reduce road congestion, boost traffic safety, and advance California’s extraordinarily large intra-state freight movement system. “Given the scale of California’s market, its geographic proximity, and its seaport infrastructure, the California Inland Port would become a nationally significant logistics and economic development project; a key to advancing California’s ambitious climate, economy, and equity goals which could then be modeled in other states,” stated a feasibility report conducted by the San Joaquin Valley Regional Planning Agencies Policy Council.

Tulare County has been on board with the project since its inception through its membership in the San Joaquin Valley Metropolitan Planning Organizations and the San Joaquin Valley Air Pollution Control District. Now the city of Visalia has joined efforts to become one of the Inland Ports although Fresno may have the inside track with access to both freight rail giants, Union Pacific (UP) and Burlington Northern and Santa Fe Railway (BNSF). But Visalia is now a key logistics center adjacent to both Highway 99 and the main UP line. ”It’s on our radar,” says Devon Jones, economic development manager for the city of Visalia.

The objectives of the California Inland Port are:

  • Support new job creation and investment growth by fundamentally repositioning the economic competitiveness of the San Joaquin Valley region.
  • Create a more robust and efficient distribution system with a specific focus on high-value manufacturing, e-commerce, and the agriculture sectors.
  • Reducing shipping costs for shippers that manage global supply chains through direct intermodal rail service to/from the San Pedro seaports.
  • Significantly reduce air pollution and greenhouse gas emissions by reducing the number of truck trips from the seaports complex in the Los Angeles region to the Central Valley and the Bay Area.
  • Reduce highway road congestion, with a parallel reduction in the requirement for road maintenance; accident-avoidance savings; all of this reducing cost.  There is currently no rail intermodal service from the Ports to intra-California markets.

Practically all containerized cargo being transported to and from California seaports from inland markets travel by truck. The report noted that in recent years, there has been considerable interest in better connecting the San Joaquin Valley to the international seaports in Southern California, such as Los Angeles and Long Beach.  These efforts have the potential to enhance economic opportunity in the Central Valley while simultaneously reducing air pollution. The Port of Los Angeles and Merced County kicked off the concept by developing the Mid-California International Trade District, a growing logistics and manufacturing hub in Merced County. Building on this effort, a group of business leaders and the Central Valley Community Foundation initiated the California Inland Port Feasibility Analysis (CIPFA) which set out to determine whether it would be feasible to establish a rail-served inland port project in California.

Based upon an analysis completed in spring 2020, proposed intermodal rail service would provide a significant reduction in annual emissions for cargo being shipped in and out of the San Joaquin Valley. Nitric oxide (NOx) emissions, the primary byproduct of burning fossil fuel, would be reduced by up to 83% while greenhouse gas emissions, such as ozone, would be reduced by up to 93%, according to a feasibility conducted by the San Joaquin Valley Regional Planning Agencies Policy Council. Moving large quantities of freight via rail would remove some freight trucks from the public highways, reducing congestion, improving traffic flow and safety on Highways 101, 99 and I-5.

Industry is On Board
The feasibility study also gathered input from key sectors of the shipping industry including large agricultural exporters, key exporters of manufactured products, inbound retailers, logistical companies like Amazon, and trucking companies and ocean carriers.  “In general, the input strongly suggested that industry felt that the introduction of intermodal rail through the California market would be beneficial to their current business and would support increased business in the future,” the report stated. “In terms of today’s condition, there was an overwhelming desire for reductions in shipping costs and more surety about stable logistics solutions to support growth.”

Agricultural processors, such as Tulare County citrus, indicated a desire for far more efficient field-to-port logistics.  They indicated that lower costs would increase their profit margins and support increased export production. Distribution centers, like Walmart, Joann’s and Amazon in Tulare County, saw rail as a way to offset shipping cost through fuel reductions and dynamics. Due to the challenges of securing drivers for longer hauls, the trucking community reacted positively to the concept of increased rail service to key hubs in the Central Valley.  They felt that an intermodal rail inland port would reduce their exposure to running longer haul trucks into the Los Angeles traffic zone and reduce their exposure to long wait times at the ports. Serving intermodal hubs in the Central Valley would allow them to substitute shorter and more profitable routes and would allow them to retain drivers.

Pulling Forward
The Inland Ports project is currently in Phase two of its feasibility study determining market readiness, industry acceptance, estimating costs and competitive impacts to the region while preparing for the environmental process moving forward. This phase is where the Executive Advisory Group (EAG) is formed, helping to inform decision making as the study moves forward. All major stakeholders will have a role in this group. The private sector, including major shippers and experts, will inform the EAG through a Shipper’s Committee. Phase Two is fully funded and is proceeding through GLDPartners under the management of the Fresno Council of Governments.

Phase Three will move the project forward to the delivery stage, detail a project financial performance model, develop a business plan for green, high-efficiency logistics/investment hubs around intermodal facilities, plan for an intermodal facility site selection, develop detailed capital cost programs, deliver a railroad agreement to collaborate, and develop public-private delivery options. Phase Three received a Caltrans Strategic Partnership grant for $388,000 in the 2021-22 funding cycle.

https://thesungazette.com/article/news/2022/04/26/inland-port-concept-to-flow-more-trade-to-central-valley-cut-pollution/

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/

By Faughn Renewable Energy 0 Comments

Biodiesel refinery celebrates expansion that makes it largest of its kind in Western U.S.

A clean-energy project two years and more than $40 million in the making got a proper christening Thursday as Denver-based Crimson Renewable Energy Holdings LLC celebrated an expansion that cements its position as the largest producer of ultra-low carbon biodiesel in the Western United States. The company’s 11-year-old biodiesel plant along Millux Road a half-hour south and west of Bakersfield can now process an extra 13.3 million gallons per year of biodiesel made primarily from recycled cooking oil, trap grease and rendered animal fats. Its total capacity is now close to 50 million gallons per year, or about 3,300 barrels daily. Crimson’s expansion, supported by the state’s Low Carbon Fuel Standard and funded in part by a $9.4 million grant from the California Energy Commission, builds on Kern County’s profile as the state’s leading producer of renewable energy and biofuels. Not only can the 56-acre plant process more materials than before, but it can also refine a wider variety of feedstocks from across the West, such as brown grease. “You can think of this as a kind of specialized recycling facility,” said President and CEO Harry Simpson of plant operator Crimson Renewable Energy LP. He added that there is no other facility like it in the country.

Biodiesel is generally blended with petroleum fuels on a 20 percent basis to reduce emissions of fine particulates and greenhouse gases. It is primarily used to fuel tractor-trailers traveling through the valley. For properly equipped vehicles, it can be used 100 percent in place of conventional diesel fuel. On Thursday, the plant literally hummed with activity under towering cylindrical tanks and two massive structures of intertwined pipes, vents and valves. Men in hardhats kept dozens of visitors on strict safety protocols amid a mildly pungent odor. CEO Markus Dielacher at the Austrian-based company that helped design and build the project, BDI BioEnergy International, said a plant with similar capabilities opened in January in Hungary, and another is planned for Belgium. The only byproduct is glycerine, which he said can be used in industrial applications. State officials commended Simpson and his company for helping California make progress toward its 2035 goal of carbon neutrality.

Executive Director Richard Corey of the California Air Resources Board said about half the state’s greenhouse gas emissions come from petroleum. But achieving the state’s climate goals won’t be as easy as suddenly switching to electric vehicles, he said: Biodiesel will be an important part of the solution. “The fact of the matter is, you can’t electrify everything,” Corey said. “We’re going to be on liquid fuels for quite some time.” Crimson employs 72 people, together with one of its sister companies nearby, Delta Trading LP, which handles and stores petroleum and renewable fuels coming in by railroad.

https://www.bakersfield.com/news/biodiesel-refinery-celebrates-expansion-that-makes-it-largest-of-its-kind-in-western-u-s/article_cf5fd0a0-bc46-11ec-87de-5bf9d8e1b0ae.html

By Faughn Distribution • Workforce 0 Comments

Owner of Save Mart, FoodMaxx brands sells to L.A. private equity firm

A Los Angeles private equity firm announced Monday it has acquired Central Valley grocery store owner The Save Mart Cos. Modesto-based Save Mart has about 200 stores in California and northern Nevada, including the Lucky California and FoodMaxx brands. It also operates a refrigerated transport company and is co-owner of a distribution center in Lathrop and a dairy processing plant in Turlock. Terms of Save Mart’s purchase by Kingswood Capital Management LP were not disclosed.

The Save Mart Cos. operates Save Mart and FoodMaxx stores in Kern County. It said in a news release the transaction will be transparent to customers and its 14,000 employees. In January 2021, Kingswood purchased Alameda-based Cost Plus World Market. It also owns a marine services business. “At Kingswood, our goal is to make good businesses even better, and The Save Mart Companies presents us with a great opportunity to do so,” Alex Wolf, Kingswood’s founder and managing partner, said in the same release. “Their 70 years of history in the Central Valley provides a strong foundation for future profitable growth, and we look forward to working with Chris and the team to position these iconic grocery brands for the future.”

https://www.bakersfield.com/news/owner-of-save-mart-foodmaxx-brands-sells-to-l-a-private-equity-firm/article_ac4a4cc2-aef8-11ec-bc0e-87fcfae005ca.html

By Faughn Commercial • New Developments • Renewable Energy 0 Comments

30 million sq ft ‘carbon management’ business park coming to Kern thanks to federal energy grant

One of the great challenges of our time is what to do with all that carbon in the atmosphere. On Tuesday, Kern County stepped forward with the seed of an answer. Or, multiple answers, as the case may be. One answer is to put it deep in the ground. Carbon sequestration, it is called. But there may be more solutions, and on Tuesday Kern County officials announced an innovative and potentially game-changing approach to discovering them. An approach that might be an example not just to California but the world.

Kern County, with help from the U.S. Department of Energy, Lawrence Livermore National Laboratory,  and other partners, will develop a 30 million square foot, 4,000 acre business park dedicated to dealing with carbon  – a natural byproduct of fossil fuels and other emissions and the central culprit in climate change. And powering the whole thing – a 30,000 acre solar farm on land no longer viable for agriculture. The Clean Energy and Carbon Management Business Park in west Kern – still in the very early stages of development – is intended to be the home of private sector investment in new carbon management technologies, from Direct Air Capture to Green Hydrogen. All five county supervisors along with three key county administrators gathered Tuesday to make the announcement. Supervisor Zack Scrivner’s district includes much of the county’s oil fields. “This process will include a stakeholder process with our partners and community,” he said, “in understanding what types of industries and jobs could be a reality in just the next few years.”

Renewable energy brought $60 billion of private and public investment to the county over the last 15 years and the hope is that the business park can do it again. If any of this sounds vague, that’s because much of it is. The purpose of the research grant is to help Kern and its several partners – among them Cal State Bakersfield, the Kern Community College District,  and the City of Bakersfield – in the development of clean carbon management  industries. Kern County wasn’t the only local government making announcements about our energy future. The City of Bakersfield and the Kern Community College District made a separate announcement Tuesday afternoon about a Department of Energy research grant of their own – part of the same Local Energy Action Program – designed to help communities create plans that reduce local air pollution, increase energy resilience, and lower both utility costs and energy burdens. Bakersfield and Kern County are two of the inaugural 22 jurisdictions around the country receiving these DOE grants, funded by the Biden administration’s $1.3 trillion infrastructure bill.

 

https://www.kget.com/news/local-news/30-million-sq-ft-carbon-management-business-park-coming-to-kern-thanks-to-federal-energy-grant/

By Faughn New Developments 0 Comments

New affordable housing complex opens in downtown Madera

It’s a celebration three years in the making. Esperanza Village on C and 5th streets in downtown Madera was officially dedicated Tuesday afternoon. “It’s much needed in the state of California, but specifically the Central Valley,” says Denice Carter with the Pacific Companies. “Especially in a downtown area where you have the services and infrastructure that’s already existing.”

The multi-million dollar project was a collaboration between the city of Madera, The Pacific Companies and MORES, funded by a grant from the California Strategic Growth Council. The project goes beyond constructing these buildings. “We’re going to be able to provide five miles of new sidewalks and we’re going to put solar street lights here in the downtown area with this project,” says Madera Mayor Santos Garcia.

Esperanza Village is fully occupied with low-income families, seniors and veterans. The mayor of Madera says this is an investment in local families. “That means we put an elevator in there,” he said. “It means that we also have internet. It means we have vibrant colors. We have good lighting in the rooms and outside.” The close proximity to stores and city government buildings is supposed to make it easier for people who live here. A few years ago, this was an underutilized parking lot – the mayor says this is a much better use of the space.

 

https://abc30.com/esperanza-village-madera/11673503/

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/

By Faughn New Developments • Workforce 0 Comments

Visalia industrial building boom continues

VISALIA – While most Valley industries struggle to find workers to fill vacant positions, industrial facilities are booming in Visalia bringing with them hundreds of jobs for Tulare County residents. Tulare County has already added more than 3,000 jobs in the “trade, transportation and utilities” sector in the last year, according to the California Employment Development Department.  The latest large-scale facilities to file plans for the Visalia Industrial Park are Seefried Industrial Properties and Fowler Packing. Seefried is a major developer with over 190 million square feet of speculative or “spec” industrial warehouses across the nation and regional offices in southeast, southwest, west and midwest. It is also the same company already underway on construction of the recently announced Ace Hardware distribution center. Ace’s 1.1 million square foot facility is on 80 acres just south of this new 535,540 square foot spec building on 39 acres. The two parcels were acquired at the same time.

Seefried’s latest project, at the northeast corner of Avenue 76 and West Goshen Avenue, is a spec project, so no tenant has been announced. The complex includes parking for 545 cars and 1,760 trailer parking stalls. This facility could accommodate a single tenant or up to four tenants. Access to the site will be from North Plaza Drive to the east and Route 76 to the west. There is a private access road to the north (From Plaza Drive) that will provide two full-access driveways with code required fire access around the perimeter. Construction ground-breaking is estimated in the fourth quarter of 2022 with full completion of the project in 2023.

The second  building project is being  proposed by Fowler Packing, a subsidiary of G4 Enterprises, Ltd., owned by the Parnagian in Fresno. Called the Duarte Industrial project, Fowler Paking’s 15-acre development is located east of North Kelsey Street and south of West Goshen Avenue. This the second filing of the project at site plan review after initial comments were received by the developer. The proposed development consists of the construction and operation of an office/warehouse style, shell building that is approximately 313,000 square feet. The proposed building will have four offices and approximately 48 loading docks on the south side of the building. The project will provide approximately 382 standard parking stalls for employee parking including eight handicap stalls and future EV charging stations. Access to the site is provided off of North Kelsey Street. Operational times are typical of warehouse style facilities and may operate up to 24 hours a day and 7 days a week since it will be a warehouse for distribution of goods.

G4 Enterprises is not new to Visalia having acquired Midstate 99 Distribution Center, a 790,000-square-foot industrial complex in Visalia, for $33.4 million in 2017. G4 has also been busy in Fresno where they brought in Amazon west of Highway 99 a few years ago. Now the developer is being thwarted on expanding in West Fresno due to opposition from community groups. At the same time, negotiations with community groups lead to an agreement from G4 to reinforce homes in south central Fresno in response to added traffic from a second Amazon sorting facility near the first. At a hearing last spring, developer Leland Parnagian noted that “The U.S. is really undergoing a shift in how people buy things from in-store to online and that’s really driving changes in employment around the country.” Also in Fresno, Seefried is breaking ground on a second “last mile delivery” warehouse  in Fresno for Amazon. No such facility is known to be happening in Visalia, as of yet.

https://thesungazette.com/article/news/2022/03/01/visalia-industrial-building-boom-continues/

By Faughn Education • New Developments 0 Comments

New $28 Million Arts Center Breaks Ground at Reedley College

A dusty corner of the Reedley College campus was the focus of great excitement Wednesday morning with the groundbreaking ceremony for the new McClarty Center for Fine and Performing Arts. Harold McClarty, owner of HMC Farms, said that when he was asked why his family was making a significant donation to the project, his response was that “there’s nothing more important than music and art. It makes you human. It’s what we’re all about.” Reedley College, one of the Valley’s oldest campuses, has music and art in its curriculum but has lacked a place to showcase the work of students, faculty, and the community. That’s going to change with the opening of the McClarty Center, President Jerry Buckley said.

The 24,000-square-foot center in the northeast corner of campus off Reed Avenue will be a state-of-the-art facility, with features not found in other Valley performing centers, said Robert Petithomme, managing principal of Darden Architects, the center’s designer. He said the McClarty Center will draw audiences from all over. Celebrating the groundbreaking of an arts and music center seems especially timely now, State Center Chancellor Carole Goldsmith said. Reedley College is one of four colleges in the State Center Community College District.“If anything, these last two years of having been shuttered and in our homes, and now as we’re facing incredible turmoil globally, it’s really the arts, it’s the ability to come together and sing, and dance, that bring us together as humans, that bring us together in love,” she said. “And Reedley College now will have a place for our students and our community to come together and do just that, to celebrate life.” The McClarty Center will include the 500-seat Pete Peters Theatre, a secured art gallery, green room, conference room, concessions and an event gathering space. The project is estimated to cost $28 million.

https://gvwire.com/2022/03/03/new-28-million-arts-center-breaks-ground-at-reedley-college/