Comstock's 0717 - July 2017

SWEET SUCCESS | ELK GROVE ROLLS THE DICE | FILLING THE LABOR GAP

BUSINESS INSIGHT FOR THE CAPITAL REGION

JULY ‘17 VOL. 29 | NO. 7

DIDAR SINGH BAINS “Peach King” of California

American Dreams

Sikhs came from India for a better life in the U.S. and found one in Yuba City

by Sena Christian

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EXECUTIVE EDUCATION

“

One of our engineering managers used his new knowledge to improve the terms

with a customer, which more than paid for the UC Davis program. Since then we’ve

sent 17 other staff from engineering, sales

and procurement to the program—making us much more effective company-wide.

— Bill Vasquez | Vice President Operations, Americas | Sims Recycling Solutions | Roseville

Stay on the cutting-edge of best practices to keep your management and leadership skills sharp.

Upcoming full-day Executive Education programs at UC Davis: ■■

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Implementing Successful Organizational Change Initiatives | JULY

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Building your Strategic Bench: Interviewing with Purpose | AUGUST 4 Visionary Succession Planning | SEPTEMBER

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Analysis of Financial Information | OCTOBER 6 Advanced Analysis of Financial Information | OCTOBER

Special pricing for Comstock’s readers: Use code COMSTOCKS17 when registering for 10% off 20

SACRAMENTO BANK OF COMMERCE EXCELLENCE IN BANKING FOR SACRAMENTO’S BUSINESS COMMUNITY PICTURED ABOVE [BACK L-R]: KEITH PARKES, VP/RELATIONSHIP MANAGER | RICK CHACKEL, SVP/RELATIONSHIP MANAGER | JEANE VAISSADE, VP/BUSINESS DEVELOPMENT OFFICER | ALLAN BERNHARD, SVP/RELATIONSHIP MANAGER | SCOTT HOLTHAUS, SVP/RELATIONSHIP MANAGER | [MIDDLE L-R]: JULI JACINO, VP/BUSINESS DEVELOPMENT OFFICER | [FRONT L-R]: KIM FLETCHER, SVP/RELATIONSHIP MANAGER | SHELLEY LAUREL, SVP/REGIONAL MANAGER

S

acramento Bank of Commerce, a division of Redding Bank of Commerce (collectively, the “Bank”), is a full-service community bank that specializes in providing products and services to the Sacramento business community. The Bank is wholly owned

by Bank of Commerce Holdings (BOCH; the “Company”), a $1.1 billion northern California company that is publicly traded on NASDAQ. BOCH recently announced the relocation of its headquarters to Sacramento.

Founded in 1982 in Redding, the Bank now celebrates 35 years of commitment and service to its northern California customers and communities that range from Sacramento to Yreka. Full banking operations were established in the Sacramento market in 2000.

“We support Sacramento, and have a responsibility to our employees, shareholders, and the greater community to be a good corporate citizen,” said Randy Eslick, CEO. “We’re committed to local businesses, evidenced by strong growth here in the last

MEMBER FDIC

17 years.” More than 30 of Eslick’s 36 years in banking have been in Sacramento, and all of Regional Manager Shelley Laurel’s 33 years in banking have been in Sacramento, giving the Bank robust local experience.

Community banking relies on hard work and good people. “We find and foster people who are skilled and experienced, and who care about customers and the community,” said Eslick. “When their discipline, consistency, and positive attitudes combine with a supportive work environment it leads to our overall success.”

The Company will move its headquarters to 555 Capitol Mall, which is expected to occur

by August 1, 2017, and will continue to expand in the Sacramento market. “We have a great foundation of local experience and a stable, conservative balance sheet, having recently raised over $27 million in capital to support growth primarily in Sacramento. It takes quality people and capital to grow, and we have both.”

“It takes quality people and capital to grow, and we have both.”

— Randy Eslick CEO

LEBRATING CE

35

CORPORATE ANNIVERSARY YE ARS

sacramento bank of commerce A division of Redding Bank of Commerce

916.677.5827 | 1504 Eureka Rd, Suite 100 | Roseville, CA 95661 SacramentoBankofCommerce.com

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LEBRATING CE

80

CORPORATE ANNIVERSARY YE ARS

[PICTURED ABOVE]: Don Deary | Board Member and Shannon Deary-Bell | President & CEO

NOR-CAL BEVERAGE COMPANY INC. CELEBRATING 80 YEARS OF EXCELLENCE Adaptability, sound strategies, and commitment to quality and to people have kept West Sacramento-based Nor-Cal Beverage Company at the forefront of their industry. Founded in 1937 by Roy Deary, Nor-Cal celebrates its 80th anniversary this year. This family-owned business, now with third-generation leadership, has taken on a changing marketplace and endured stifling state regulations, and continues to thrive with a motto of “the right product at the right cost at the right time.”

Roy’s son, Don Deary, swept Nor-Cal’s floors at age 12 and stepped into a full-time role in 1953. He and his late brother Roy Grant Deary guided the company for decades with wisdom and sound philosophies. Don still sits on Nor-Cal’s board, and his daughter Shannon Deary-Bell now oversees the company and its 550 employees as President and CEO. Along with Shannon, her brother Tim Deary, Executive Vice President of Logistics, and cousin Grant Deary Jr., Executive Vice President of External Affairs, are instrumental to company operations.

Nor-Cal began as a bottler and distributor, making numerous brand-name beverages as a franchise, and distributing them to stores. However, parent companies, wanting more product control, bought out most franchises and many independent bottlers disappeared. Nor-Cal survived by adapting.

“As business changes, our strategy has to change,” says Shannon. “We’ve reinvented ourselves many times, especially in recent years.” Nor-Cal is now a co-packer, manufacturing big brands’ products and storing them while parent companies handle distribution. Nor-Cal also manufactures its own brand, Go Girl energy drink, and for every drink sold, donates a portion of the proceeds to breast and ovarian cancer research. “We’re committed to giving back 365 days a year to these causes,” says Shannon.

Equipment Solutions, a division of Nor-Cal, also continues to thrive, providing the company diversity and continued

916.372.0600

growth. This department works with convenience stores on installations and preventative maintenance programs, as well as installations of beer systems and walk-in coolers.

Nor-Cal’s highly efficient West Sacramento and Anaheim facilities manufacture products that must be the right cost and ready when needed. “To be best in class and to compete nationwide,” notes Shannon, “we must make quality products in the most efficient, cost effective manner.” Currently, each plant produces 24 to 26 million cases per year, and, combined, encompass more than 1 million square feet, with potential for growth at both locations.

Nor-Cal may expand out of state, as well, to offset the cost of doing business in California. “This state’s regulations for manufacturers are an enormous challenge,” explains Shannon. “We are one of the best and largest co-packers west of the Mississippi, awarded many quality certifications other companies haven’t earned, but we’re at a disadvantage because our cost structure is much higher trying to do business in California. We must rely entirely on our quality, service, and reputation to bring customers to us rather than our competitors.”

Don proudly says, “Shannon has done an excellent job taking over from me. Shannon, Tim, and Grant Jr. have worked very hard to keep this business a success.” Shannon adds, “My dad’s support is invaluable to me. It’s highly rewarding to work with family. We’re delivering the best Nor-Cal possible to our fourth generation. Ultimately, it’s all about the entire Nor-Cal family of employees. People offer loyalty and value, and treating them fairly and with respect is the only way a business will truly thrive.”

Shannon concludes, “The entire Deary family is immensely proud of this company’s success and it wouldn’t be possible without the quality, commitment, and loyalty of our employees. For that we are truly blessed and grateful. We look forward to the next 80 years!”

|

2150 Stone Boulevard

|

West Sacramento, CA 95691

www.ncbev.com

LEBRATING CE

25

CORPORATE ANNIVERSARY YE ARS

LANCASTER BURNS CONSTRUCTION, INC. BUILDING EXCELLENCE FOR 25 YEARS

PICTURED ABOVE [L-R]: JORDAN BURNS AND VANCE LANCASTER

LB Construction celebrates its 25th anniversary this year. This Roseville-based subcontractor’s array of trades includes Rough Carpentry, Steel, Metal Stud/Drywall, and Concrete, making them an excellent resource for General Contractors.

President Jordan Burns and Vice President Vance Lancaster founded LB in 1992 and have grown the business exponentially – it’s now an industry leader with 370 employees, and projects throughout California, Oregon, and Nevada.

LB focuses on Commercial/Industrial construction, as well as high-end resort and multi-family. Some of their more notable local projects include the Ice Block projects in Midtown Sacramento and B Street Theater’s new facility. They also have a large presence in the Bay Area with projects like Fairway One at Pebble Beach and Santana Row in San Jose.

Having successfully weathered economic ups and downs, LB now faces the skilled workforce gap. “We spend tremendous effort developing and retaining a skilled workforce, one way being an ESOP

company and 100 percent employee-owned since 2006. Our Employee Owners have a vested stake in the company and take pride in their workmanship. We also have a robust safety program that keeps our workers safe,” Burns says.

LB is still in its first generation of executive leadership, but looking ahead, actively trains their future management from within, and promoting from within extends down to entry-level positions. LB also partners with local school districts and community colleges in creating curriculum and training that results in a better prepared potential workforce.

“Everyone in construction struggles with the skilled workforce gap; our advantage is offering innovative construction knowledge,” Lancaster says. “Competitors can perform the work physically, but lack our ability to help clients solve project pitfalls. We guide clients through constructibility issues within their time-frame and budget.”

Burns concludes, “We have a long-term local presence, and look forward to building the Sacramento area’s future.”

Our Purpose: We Build to Provide and Endure

916.624.8404 | 8655 Washington Blvd., Roseville CA 95678 | CA #746823 LBConstructionInc.com

LEBRATING CE

20

CORPORATE ANNIVERSARY YE ARS

SMILE BUSINESS PRODUCTS, INC. Smile Managed IT Services and our defensive mindset against network vulnerabilities

C

ybersecurity is a collaboration of technologies, processes and practices designed to protect networks, computers, applications, programs and data from attacks. If it seems that you are seeing more and more news stories about data breaches and cybersecurity these days, you are.

Today, business owners face increasing threats by criminals who can reach out from around the world to wreak havoc on your network.

Viruses, malware and ransomware are no longer just nuisances but are now an established robust international infrastructure to steal money, personal information and data.

How can you protect yourself and your business from such attacks? The answer lies in multiple layers of security which Smile Managed IT Services can implement to help you avoid an attack.

TECHNOLOGY • Business Class Firewall - Invest in a business class firewall configured with access rules to allow in only the types of network traffic that are required for your business.

• Back-up and Recovery - Implement a full back up and disaster recovery process allowing us to recover a file that was inadvertently deleted or restore a full server of information after a catastrophic hardware failure or natural disaster.

• Spam Filter – Spam filtering will effectively counter attack and block

easy access to those business emails offering fake links to fraudulent invoices, malicious code disguised as a document or even a newsworthy event.

PROCESSES • Security Patches and Updates - Security patches and updates are critical to ensure your business continuity. Viruses like the recent WannaCry ransomware take advantage of the vulnerabilities in unpatched systems. Ongoing monitoring of your network is a necessity.

PRACTICES • Protection - Implement a set of passwords, practices and procedures to ensure that employees only access data that they are authorized to access.

Unrestricted access to documents creates an opportunity for loss whether it be from a hardware failure, ransomware, or a simple employee mistake.

• Education - Update employees frequently about the types of electronic threats.

Educate them on why it’s important to follow processes.

Employees are the greatest strength to any business, but they are often the weakest link when it comes to data breaches. At Smile we update our employees frequently about the types of electronic threats that we face and train them to act cautiously when faced with a potential problem.

Cybersecurity is more than just buying a new piece of hardware or software. It requires a defensive mindset and a proper assessment of your network environment and vulnerabilities.

Together with technology, processes and practices, Smile IT Managed Services can improve cybersecurity and avoid future attacks.

According to Forbes, worldwide spending on information security will reach $170 billion by 2020.

Managed IT Services Contact Smile today to start the conversation on how Smile Managed IT Services can protect your data and overall network.

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Grand H

ai yatt Kau

Simply put, Moxie is addition by subtraction.

www.moxieshield.com

For over 40 years Moxie has been making concrete more dependable.

How? By providing water-proofing and vapor-proofing performance, added durability and extending the life cycle of the concrete. All the while subtracting corrosion intrusion, efflorescence and construction time. That’s why the Grand Hyatt Kauai chose Moxie for their two-million-gallon saltwater lagoon.

addition by subtraction.

Volume 29 Number 7 PRESIDENT & PUBLISHER Winnie Comstock-Carlson, Ext. 101 winnie@comstocksmag.com EDITOR IN CHIEF Allison Joy, Ext. 106 MANAGING EDITOR Sena Christian, Ext. 110 ASSOCIATE EDITOR Robin Epley, Ext. 104 INTERIM ART DIRECTOR Kelly Barr, Ext. 115 EDITORIAL DESIGNER Sara Bogovich, Ext. 108 AD DESIGNER Jason Balangue, Ext. 105 VICE PRESIDENT & DIRECTOR OF BUSINESS DEVELOPMENT Clayton Blakley, Ext. 109 claytonb@comstocksmag.com REGIONAL BUSINESS DEVELOPMENT Susan Cruz, Ext. 102 susan@comstocksmag.com For more information about advertising, send an email to ads@comstocksmag.com

BUSINESS MANAGER Sharon Brewer, Ext. 103 MARKETING MANAGER Kiara Reed, Ext. 112 MARKETING ASSISTANT Thomas Hanns, Ext. 111 CIRCULATION DEPARTMENT Tamara Duarte, Ext. 107

Save the Date

CONTRIBUTING WRITERS Rich Ehisen, Laurie Lauletta-Boshart, Suzanne Lucas, Ryan Lundquist, Pam Marrone, Russell Nichols, Jeff Wilser, Steven Yoder CONTRIBUTING PHOTOGRAPHERS Tia Gemmell, Mike Graff, Ken James, Kyle Monk, Noel Neuburger, Rachel Valley

August 30, 2017 5:30 p.m.-9:00 p.m.

CONTRIBUTING ILLUSTRATOR Melissa Arendt PRINTING Commerce Printing Sacramento, Calif. commerceprinting.com Published by Comstock Publishing Inc. 2335 American River Dr., Suite 301 Sacramento, CA 95825 (916) 364-1000 Fax (916) 364-0350 comstocksmag.com

Comstock’s magazine covers commerce and community in the counties of Amador, El Dorado, Nevada, Placer, Sacramento, San Joaquin, Solano, Sutter, Yolo and Yuba, known as California’s Capital Region.

Comstock’s is published monthly by Comstock Publishing Inc, 2335 American River Dr., Ste. 301, Sacramento, CA. 95825. Comstock’s Volume 29, No. 7. A one year subscription to Comstock’s is $25 per year; a single copy is $4.95 plus postage, plus tax (if applicable). All rates are payable in U.S. funds.

Publisher is not responsible for unsolicited manuscripts and artwork. ©2017 by Comstock Publishing Inc. No part of this publication may be reproduced without the written permission of the publisher.

www.saccenter.org/prideawards 14

comstocksmag.com | July 2017

Comstock’s is a member of the Western Publishing Association.

July 2017 CHAIRMAN RICHARD RAISLER President, trueHUE Enterprises Inc. MIKE AMMANN President and CEO, San Joaquin Partnership MEG ARNOLD Managing Director, Valley Vision Inc.

FOR

JAMES BECKWITH CEO, Five Star Bank STEPHEN BENDER CEO, Warren G. Bender Co. CHRISTI BLACK-DAVIS Executive Vice President, Edelman CAROL BURGER President, Burger Rehabilitation TIM CARMICHAEL Manager, Southern California Gas Co. MAC CLEMMENS CEO, Digital Deployment JOHN FINEGAN Founder, Beck Ag STEVE FLEMING President and CEO, River City Bank ANDREW GRANT President and CEO, World Trade Center Northern California JIM HARTLEY Vice President, CH2M OLEG KAGANOVICH Founder and CEO, Wyndow TOM KANDRIS CEO, PackageOne DENTON KELLEY Managing Principal, LDK Capital LLC BRIAN KING Chancellor, Los Rios Community College District JEFF KOEWLER Partner, Delfino Madden O’Malley Coyle & Koewler LLP LEO M C FARLAND President and CEO, Greater Sacramento and Northern Nevada Volunteers of America BILL MUELLER CEO, Valley Vision Inc. TIM MURPHY CEO, Sacramento Regional Builders Exchange MARIA OGRYDZIAK Owner, Maria Ogrydziak Architecture SANDY PERSON President, Solano EDC CURT ROCCA Managing Partner, DCA Partners VERNA SULPIZIO President/CEO, West Sacramento Chamber of Commerce DARRELL TEAT President, The Nehemiah Companies SANJAY VARSHNEY VP/Wealth Advisor, Wells Fargo The Private Bank JOSHUA WOOD CEO, Region Business

BE A PART OF THE FUTURE BUILT ON THE LEGACY www.lionakis.com

Opinions expressed in this publication do not necessarily reflect the individual opinions of the members of the editorial board.

July 2017 | comstocksmag.com

15

Let’s power change.

Your choice can make a difference.

Since 1997, almost 2,000 local businesses have joined SMUD’s Greenergy program to support renewable energy projects and to help make a difference in our region. Now it’s your turn. Join today for an additional $5 or $10 per block (1,000 KWh per block) added to your SMUD bill and SMUD will meet your business’ electricity needs with power generated from renewable resources like wind, water and solar.

smud.org/BusinessGreenergy 1-877-622-SMUD (7683)

Dan Arnett, General Manager of the Sacramento Natural Foods Cooperative, says that one of the guiding principles of the Co-op is “Concern for Community”.

That is why he felt it was essential to enroll in SMUD’s Greenergy where 100% of their electricity is from renewable resources.

Powering forward. Together.

16

comstocksmag.com | July 2017

©SMUD ©SM UD D 088 0880-1 0-17_8 7 .12 7_8 .125x1 5x10.8 0 75c

CONTENTS n

July 2017

FEATURES

66 76

IMMIGRATION

46 Now Hiring

California farmers aren't the only ones worried about the potential impact of changing federal immigration policies, but what might the long-term impact be on our local restaurants and construction companies?

by Steven Yoder

CONSTRUCTION

ON THE COVER: PHOTO: KYLE MONK SWEET SUCCESS | ELK GROVE ROLLS THE DICE | FILLING THE LABOR GAP

BUSINESS INSIGHT FOR THE CAPITAL REGION

JULY ‘17 VOL. 29 | NO. 7

66 Troubles of the Trade

To meet SACOG housing goals, the Sacramento region should build almost 12,000 units this year and is on track to hit only half that. With rising costs and a shortage of workers, what's getting built — and how?

by Russell Nichols

HEALTH & WELLNESS

76 Mysteries of the Gut Instinct

That weird feeling in your stomach might be more than indigestion. Your gut also houses the body's "second brain," and scientists unraveling its mysteries find that has a significant impact on mental and overall health.

by Jeff Wilser

GAMING

82 Raising the Stakes

DIDAR SINGH BAINS “Peach King” of California

American Dreams

Sikhs came from India for a better life in the U.S. and found one in Yuba City

by Sena Christian

52 LEADERSHIP

American Dreams

Punjabi-Americans found prosperity, and a new home, in the quiet town of Yuba City

by Sena Christian

The Wilton Rancheria tribe is going all in on a new casino and resort in Elk Grove, and Tribal Chairman Raymond "Chucky" Hitchcock is dealing the cards.

by Robin Epley

July 2017 | comstocksmag.com

17

n CONTENTS

July 2017

DEPARTMENTS

36

42

96

THE USUAL

34

EVIL HR LADY What to do when the person you hired becomes the person you need to fire

by Suzanne Lucas

36

The local real estate market is plagued by a lack of inventory

James Corless, new CEO of the Sacramento Area Council of Governments, discusses the future of transportation, housing and autonomous vehicles

18

opinion

Local dessert shops find the sweet taste of success

24

comstocksmag.com | July 2017

Davis must offer more wet lab space for burgeoning bio-tech companies

rsvp Salvation Army Community Luncheon and Spirit of Caring Award/ Midtown Business Association Midtown Love Benefit / NAIOP Person Of The Year Annual Dinner/ American Heart Association Go Red For Women Luncheon

30 worth noting

Buzzword of the Month: Unicorn/ Readers weigh in on CSU's budget/ICYMI: Our June Startup of the Month

96

snap

98

the breakdown

CAPITAL REGION CARES The eighth installment of our 22nd annual salute to nonprofits

To survive, the media must adapt

by Pam Marrone

TASTE

by Laurie Lauletta-Boshart

91

22

DISCOURSE

interview by Rich Ehisen

42

letter from the editor

ON THE MARKET

by Ryan Lundquist

38

21

A little piece of Japanese culture can be found in Walnut Grove

The Sacramento region is experiencing economic growth

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July 2017 | comstocksmag.com

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May 2017 | comstocksmag.com

45

LETTER FROM THE EDITOR n

THE FOREST THROUGH THE PAGES P H O T O : K E L LY B A R R

C

alifornia is no stranger to devastating wildfires. But did you know that our famed sequoias actually need fire? It not only helps release seeds from their cones, but it also uncovers the soil in which those seeds can take root. Sometimes, destruction leads to rebirth.

My therapist mentioned this to me last month as I lamented a round of layoffs at the Sacramento Bee and what it might mean for our local media environment. (Yes, I discuss troubling media trends with my therapist.) The industry as a whole has undergone a consistent decade (at least) of ongoing disruption. To survive, we must adapt, but no one is quite sure how. Sometimes adaptation means letting go of what has worked to make room for what could work. That’s not always easy, particularly if it means parting with bylines that feel as much a part of our city’s fabric as Tower Bridge or the State Capitol.

I don’t claim to know the Bee’s strategy for what comes next.

(You can glean a deeper understanding by checking out Rich Ehisen’s interview with Sacramento Bee Executive Editor Joyce Terhaar from our May issue, featuring women in leadership.)

What I do know is how we at Comstock’s are attempting to meet similar, though not identical, challenges.

First, it’s important to note that print magazines face different, and perhaps more scalable, obstacles than print newspapers. I do believe that we are seeing the end of printed newspapers, and I have grave concerns about how these daily outlets will sustain themselves in an online-only world. Subscriptions and online ads have yet to return revenue comparable to print advertising. Magazine readers are at least moving online at slower rates, and that offers a longer runway for evolution.

In fact, the Association of Magazine Media reported overall audience growth of 6.2 percent in 2015 and 18.8 percent growth for business and finance magazines.

That doesn’t mean it’s all sunshine and rainbows for magazines. Nationally, newsstand sales continue to decline (though Comstock’s has seen a recent uptick in retail sales) and subscription numbers have been able to plateau in large part due to special discounts or give-aways. Yet magazines are more of a luxury product than newspapers, and readers often have a special affinity for them — the same affinity that makes a reader choose a hard-copy book over their Kindle. Our readers are more engaged with and attentive to our product. That means magazines still need a print product, and yet we have to respond to reader expectations for strong digital content and an online presence.

I hear everyday how difficult it has become to be a reporter, particularly as staffs shrink and budgets get cut. Filing clean copy is no longer enough. Writers are often expected to also take photographs, edit audio clips and produce videos — in addition to cultivating their own personal brands that build awareness for the articles they write. The majority of our writers and photographers are freelancers. And while building new skills can be a great thing, we also want to create space for those writers and photographers to focus on what they do best.

A big part of Comstock’s evolution has been cross-training our in-house staff, redistributing responsibilities and investing in employee education. This includes ensuring that our editors and designers feel as comfortable working with our website as they do with our print magazine and illuminating the process for how things end up online — since there’s no online equivalent to the massive binder full of pages in which our print product is built.

We’re also working with the designers in our production department to expand their videography capabilities, which lets us avoid putting the burden of video content solely on writers and editors. Kiara Reed, who started as our ad coordinator before taking on social media and web management, graduated last month from the Nehemiah Emerging Leaders Program as our marketing manager. Building a marketing department allows our editors to focus on the quality of stories, not on how those stories reach readers.

Video isn’t the only new medium we’re exploring, though you can see what we’re up to by visiting our YouTube channel (ComstocksMag). We also launched a podcast, Action Items, last March.

Shortly thereafter, we introduced audio versions of our longform stories, both online and directly to our podcast subscribers. And last month we launched a digital publication, which you can find by checking the issue archive at comstocksmag.com.

We rely heavily on reader feedback to determine if and how these strategies are working, if they are enhancing your experience with our product and deepening your understanding of and connection to the region we cover. So speak (or type) your mind — we’re eager to hear from you.

Allison Joy Editor in Chief

July 2017 | comstocksmag.com

21

n OPINION

DAVIS NEEDS TO GIVE WET LABS THE GREEN LIGHT

by Pam Marrone

I

n the 27 years I have lived in Davis, there has only been one sizeable business park with wet lab space for life sciences and ag biotechnology companies, which is University Research Park at the corner of Drew Avenue and Richards Boulevard.

Each and every time another proposed development for wet lab space comes up to the Davis City Council or to voters, it fails to get a green light.

Wet labs are essential for research, particularly in biotech: They are laboratories with space for storage and conducting experiments, with sinks and hoods to ventilate hazardous fumes and vapors, and an autoclave (a pressure chamber) to sterilize and make media. A wet lab typically has space for refrigerators, incubators and growth chambers to grow plants and conduct temperature-controlled experiments.

University Research Park was developed starting in 1990 by Interland (and recently sold to developer Mark Friedman). In 1990, I had recently moved to Davis to set up the first R&D subsidiary outside of Denmark for the Danish insulin and industrial enzyme company, Novo Nordisk. I was Interland’s first life sciences tenant, sharing an office with Don Lewis, president of Interland, while Novo Nordisk Entotech’s lab and office facility was designed and constructed. From design to occupancy was less than a year. I moved my second biopesticide endeavor, AgraQuest, into University Research Park in 1999 and my third biopesticide company, Marrone Bio Innovations, there in 2014. I helped Novo Nordisk Biotech, another subsidiary (now Novozymes Biotech) move there in 1992, where they still reside.

Since then, despite many attempts over nearly three decades, no other business park in Davis with wet lab space suitable for growing companies like the ones I created have come to fruition.

Most recently was the Nishi Gateway project, which was rejected by the city’s voters in June 2016. It seems to me that a developer, the City Council and Davis residents can craft a project that will pass muster with characteristics local residents expect: green, clean, R&D-based businesses in a development that is sustainable and environmentally-friendly; creates jobs for residents, UC Davis students and graduates; minimizes traffic effects and does not have too much housing. Housing can be incompatible with laboratories and greenhouses; lighting from greenhouses can an-

noy residents and local ordinances may not allow quantities of common laboratory chemicals and reagents nearby schools and residential areas.

Despite the obstacles, progress has been made in the startup ecosystem in Davis and throughout the region. The programs of the now-defunct Sacramento Area Regional Technology Alliance were dispersed, including AgStart, which is now operating as its own nonprofit organization in Woodland. AgStart incubates ag tech companies that do not need lab space. Likewise, Davis Roots incubator downtown incubates startup companies by providing a mentoring network and support in preparing a more detailed nine-month launch strategy, which includes project and funding milestones. Once the strategy is completed and their plan is accepted, new ventures are given office space within Davis Roots for a designated period of time.

Additionally, the UC Davis Graduate School of Management has many programs for entrepreneurs through the Mike and Renee Child Institute for Innovation and Entrepreneurship, such as the Big Bang! Business Competition, which awards monetary prizes to teams of entrepreneurs who pitch their new business ideas. The institute also has the Biomedical + Engineering and Food and Ag Entrepreneurship Academies. The university’s Venture Catalyst program partnered with the company HM Clause to launch a business incubator, and the World Food Center recently brought the Ag Innovation Showcase to Davis. There are many other organizations that support entrepreneurs and startups — too numerous to name — such as Hacker Lab in Midtown Sacramento and Rocklin, and Jack Crawford’s Impact Venture Capital based in Sacramento. But once graduating from these programs, the wet lab space in the region is limited.

Notably in Davis, Area 52 is being developed and managed by Tim Keller, a UC Davis alumnus and winner in the university’s 2008 Big Bang! competition. Area 52, on Research Park Drive, is a 36,000-square-foot building that will have 20 offices, two wet labs, a fully-equipped machine shop, composites shop and computer lab. The building is owned by Sierra Energy, a waste gasification company (also founded out of the Big Bang! competition) and is investing more than $1 million in renovations for the facility.

The plain truth is that many entrepreneurs and spin-offs from UC Davis want to stay in Davis, a city that provides an unparalleled quality of life and work. The convenience of being close to the university is critical.

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this month's

CONTRIBUTORS RYAN Ryan is a certified residential apLUNDQUIST praiser in the Sacramento area.

"Low Inventory This month, Comstock’s is launchBecomes Our New ing his column, “On the Market,” Normal" pg. 36

This Area 52 project does help fill the need for wet lab space for growing life science and biotech companies. However, when the startup companies grow out of their incubator and need more space, there is very little for them to move into.

Certainly our regional leaders have tried to address this need by developing space in other areas outside of Davis, such as McClellan Business Park. The Yolo County cities of Woodland and West Sacramento have always been business-friendly, with a welcome mat for relocating or new businesses.

But the plain truth is that many entrepreneurs and spinoffs from UC Davis want to stay in Davis, a city that provides an unparalleled quality of life and work. The convenience of being close to the university is critical — students can bike to their internship locations between classes. Company scientists can hop over to use the library, or rent laboratory equipment or facility space. They can meet with professors to discuss research and develop collaborations, enlist Graduate School of Management teams to conduct market research, give a lecture and attend networking events. More wet lab space means more companies locate in Davis and stay in Davis as they grow, creating more jobs.

Let’s work together to move forward a wet lab research park that is in sync with Davis values, that residents can appreciate, and provides space for the growing companies spun out of the world-class university here or those elsewhere.

to run every other month. Ryan also helps illuminate the local real estate market through his Sacramento Appraisal Blog. He is a teacher at heart and regularly does classes for both appraisers and agents. His clients include homeowners, governmental agencies, attorneys, real estate professionals and lenders. In his spare time, Ryan enjoys woodworking, writing, craft beer, the American River and spending time with his wife, two sons and dog Ollie. For more, visit sacramentoappraisalblog.com. On Twitter @SacAppraiser.

RACHEL Rachel is self-taught in all aspects VALLEY of the photography business, and

"How Sweet It Is" became a food photographer about pg. 42

eight years ago, right when Sacramento’s food scene was starting to catch fire. She specializes in editorial food and event photography, and portraiture. Her first book was recently released, called Inside Sacramento, which she cocontributed photos for along with one other local photographer. Rachel was raised in the Roseville/ Rocklin area, and now lives in Citrus Heights. For more, visit www.rachelvalley.com.

RUSSELL Russell, who has been contributNICHOLS ing to Comstock's for seven years, "Troubles of the Trade" wrote pg. 66

Dr. Pam Marrone is CEO and founder of Marrone Bio Innovations, a company she started in 2006 to discover and develop bio-based products for pest management and plant health. In 2013, MBI listed its stock on NASDAQ. The company’s products are used in fruit, nut, vegetable and row crop markets. She is on the Dean’s Advisory Councils for UC Davis Agricultural and Environmental Sciences and Cornell University College of Agriculture and Life Sciences. She holds more than 40 patents. She has a B.S. in entomology from Cornell University and a Ph.D. in entomology from North Carolina State University.

about efforts to recruit construction workers to solve Sacramento's housing shortage in this month’s magazine. "It's easy to think of this crisis in the abstract," he says, "but these are real people, struggling people who need a place to live." Russell is a freelance writer who focuses on technology, culture and mental health. His work has appeared in the Wall Street Journal, the Boston Globe, Governing Magazine and Government Technology. He is currently traveling the world with his wife.

July 2017 | comstocksmag.com

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n RSVP

AMERICAN HEART ASSOCIATION GO RED FOR WOMEN LUNCHEON Hundreds of local community leaders gathered for a luncheon on May 19 at the Doubletree Hotel in Sacramento to celebrate the American Heart Association’s Go Red For Women movement to raise awareness about heart disease. Guests this year were treated to educational sessions and shopping opportunities with local vendors, and heard from a local heart disease survivor. The event has raised more than $600,000 to help fund research and community programs. Photography: Tia Gemmell

2

1 Shahnaz Van Deventer, director of marketing and development, The Powerhouse Science Center; Mark Borrecco, president and CEO, Rabobank; and Michelle Borrecco, his wife. 2 Evelyn Jensen, community volunteer; and Michelle Mahan, principal, Mahan Media Relations. 3 Taylor Kandris, student, Texas Christian University; and Theresa Kandris, circle of red chair, American Heart Association. 4 Tony Eyer, CTO, Rabobank; and Mark Sinopoli, assistant vice president, Rabobank. 5 Julie Lofgren, heart walk director, American Heart Association; Jessica Gordon Lannom, executive director, American Heart Association; and Celeste Chin, supporter.

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more images at comstocksmag.com

NAIOP PERSON OF THE YEAR ANNUAL DINNER NAIOP, the Commercial Real Estate Development Association, held their annual Person of the Year dinner May 25 at the Golden 1 Center, benefiting City Year. Mark Friedman, president of Fulcrum Property, was named as Person of the Year. Photography: Phil Kampel Photography & Tia Gemmell

1 Cathy Kleckner, business development manager, Growing Company; Tyler Davis, owner, Porter Consulting; Heather Hess, business development manager, Deacon Construction; Erik Ferguson, account executive, JLL; and Amanda Sasaki, quality director, JLL. 2 Justin Wise, project manager, Stantec; Tina Nguyen, operations manager, City Year; and Matthew Shigihara, architect, Stantec. 3 Mark Friedman, founder and president, Fulcrum Property; Jennifer Granger with husband Chris Granger, president & chief operating officer, Sacramento Kings; Marcos Bretรณn, columnist, Sacramento Bee; and Stan Van Vleck, partner, Downey Brand. 4 Lauren Doyle, senior sales associate, The Residences at the Sawyer; and Steve Budiono, commercial relationship manager, Community 1st Bank. 5 Andrew Grant, president and CEO, Northern California World Trade Center; Patricia Rodriguez, senior vice president and area manager, Kaiser Permanente; and Jeff Owens, executive director, City Year.

July 2017 | comstocksmag.com

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n RSVP

MIDTOWN BUSINESS ASSOCIATION MIDTOWN LOVE BENEFIT The Midtown Business Association’s Midtown Love Benefit was on May 18 at Faces Nightclub in Sacramento. The evening attendees enjoyed drinks and food provided by local restaurants. The mission of the Midtown Business Association is to make Midtown the city’s center for culture, creativity and vibrancy. Photography: Tia Gemmell

1 Terry Sidie, owner, Faces Nightclub; Traci Rockefeller Cusack, owner, T-Rock Communications; and Bodeen Ganhutagarngid, vice president of sales operations, La-Z-Boy Furniture Galleries. 2 From Turton Commercial Real Estate: Brooke Butler, vice president of operations & marketing; John Mudgett, senior director; Corey Lau, creative director; and Patrick Stelmach, director. 3 Laura Mason-Smith, president, Mason-Smith Success Strategies; Beth Hassett, executive director, WEAVE; and Dennis Smith, president, Tsakopoulos Management Company. 4 Johnnise FosterDowns, executive director, Republic Services; Michelle SmiraBrattmiller, principal, MMS Strategies; and Wendy Saunders, municipal services manager, Capitol Area Development Authority. 5 Philip Duncan, executive vice president, Vitek Mortgage Group; Nicole Mifsud, community sales manager, Grupe Homes; and Becky Harvey, realtor, Lyon Real Estate.

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Presenting an entirely new, sophisticated living experience at Downtown Commons, The Residences at The Sawyer offers thoughtful, contemporar y design and unparalleled amenities within steps of Sacramento’s best arts, entertainment, sports, shopping and dining.

Home awaits at T HE S AWYER R ESIDENCES.COM

9 1 6 . 2 2 6 . 3 1 76 | S A L E S G A L L E RY: 6 6 0 J S T R E E T, F O U R T H F LO O R | S AC R A M E N TO, C A L I F O R N I A 9 5 8 1 4 The developer reser ves the right to make modifications in materials, specifications, plans, pricing, various fees, designs, scheduling and deliver y of the homes without prior notice. All dimensions are approximate and subject to normal construction variances and tolerances. Plans and dimensions may contain minor variations from f loor to f loor. This is not an offer to sell or solicitation to buy to residents in jurisdictions in which registration requirements have not been fulfilled, but is intended for information only. Listing Broker : The Agency New Development CA RE 01973483. Obtain the property report or its equivalent by federal and state law and read it before signing anything. No federal or state agency has judged the merits or value, if any, of this property. .

July 2017 | comstocksmag.com

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n RSVP

SALVATION ARMY COMMUNITY LUNCHEON AND SPIRIT OF CARING AWARD The Salvation Army honored the Sacramento Republic FC with the Spirit of Caring award during its 26th Annual Community Luncheon on May 30. The award was in recognition of Republic FC’s extensive community service work and philanthropy, including the creation of the Glory Glory Sacramento Fund. This year’s luncheon grossed more than $230,000 in proceeds to support local Salvation Army programs and services year-round. Photography: Tia Gemmell

1 Damien Beasley, events manager, Raley’s Family of Fine Stores; Warren Smith, manager and president, Sacramento Republic FC; Chelsea Minor, director of public relations and public affairs, Raley’s Family of Fine Stores; Brent Sasaski, vice president of corporate partnerships, Sacramento Republic FC; and Ben Gumpert, CEO, Ursa Ventures. 2 Conrad Davis, partner, Crowe Horwath; Denise Vonhof Alexander, wealth advisor, Wells Fargo; and Jason Bell, investment strategist, Wells Fargo. 3 Jean Kim, marketing manager, Swinerton Builders; Scott Moak, vice president of community impact and executive director, Kings Foundation at Sacramento Kings; and Alan Wolf, division manager, Swinerton Builders. 4 Melissa Granville, community partnerships director, Food Literacy Center; and Amber Stott, executive director, Food Literacy Center. 5 Leroy Tripette, VP corporate partnerships and advancement, Cristo Rey High School; Louise Walker, president and CEO, First Northern Bank; and Jeffery Adamski, executive vice president and senior loan officer, First Northern Bank.

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This year’s California State Fair poster commemorates our 50th year at Cal Expo.

The design features Cal Expo landmarks that were created by Disney Imagineers.

Signed prints are for sale. They can be shipped to you, or picked up at the box office during the Fair, July 14 – 30, 2017. It’s an exciting year, so download the CA State Fair app for events and get your tickets at CAStateFair.org.

July 2017 | comstocksmag.com

, 2017 JULY 14 - 30

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n WORTH NOTING

buzzwords

un i corn

READERS SOUND OFF

/'yōonə,kôrn/, v.

A company, usually a tech start-up, without an established performance record, but with a stock market valuation estimated at more than $1 billion.

BY Robin Epley ILLUSTRATION: Jason Balangue

O

THE BUZZ The biggest mistake people make, AngelHack Chief Marketing Officer Brian Collins says, is to call your company a unicorn when it’s clearly not.

“That happens all the time,” he says. “It’s a really easy way to discredit yourself in front of investors.” It is possible though to be considered a unicorn without actually reaching the valuation requirement, Collins says. This is especially true if the company is from an area not well-known for tech unicorns — like Sacramento — and is very near to the $1 billion valuation. Collins points to Trilio as an example — a data recovery and backup company in Hopkinton, Mass., about an hour outside of Boston. Their offices are not based in a tech hub, it’s not at $1 billion yet but is very close, he says, and “what they do and the speed at which they do it” qualifies Trilio as a unicorn in his mind. But, Collins warns, your company is not a unicorn just because it’s worth more than others.

While it can be dangerous to use the term if you’re not yet a unicorn, he says, “It’s never dangerous to want to be a unicorn. That can cause a lot of buildup and excitement in your team. That’s the right mindset and you can be bold. Just be careful in calling yourself a unicorn when you’re not already one.”

THE WORD Though Collins stays mum on the possibility of a Sacramento unicorn emerging anytime soon, he does say we’re in a prime mode for it. AngelHack ranks cities into four categories, with tech hubs like London, Singapore, Tel Aviv and San Francisco at the top of the list. Sacramento is on a level, he says, where there’s more capital in town than talent.

“If everyone deployed their capital tomorrow, [Sacramento tech companies] would be overfunded,” he says. “That’s actually a good thing to develop a unicorn system.” That’s exactly where unicorns come from, Collins says.

If Sacramento wants a unicorn in town, then “we have to focus on talent — bringing in the right talent, and keeping it here,” he says. That’s a good goal to have though, because having one unicorn in town, “empowers and pushes their region further along in the economy,” he adds. In short, one unicorn breeds more. Prepare for a stampede.

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Watch the video online!

Donna LaVecchia: As a newcomer to the Sacramento area, and grandmother of two future college students (their father graduated from CSUS), I found this article informative and well written. Thank You. Fred Schreiber: When I came as a new faculty member to the CSU in 1973, my department had 32 tenure-track faculty members for about 500 students. We had a rich and varied curriculum. I just retired from a department of 20 tenure-track faculty members for about 1000 students. We now have a bare-bones curriculum with students scrambling to find classes … Financial aid is great but it does not cover student needs today. It breaks my heart.

West Sacramento Maps Out Homeless Population Regina Basurto: My church is starting a feed-thehomeless program where we go out to areas of towns and give out either breakfasts or lunches. Is there a way to find out where the homeless live? We can better help if we know their location. Thanks.

Visitor: It’s a nice thought but homeless folks are not gonna be cool with this simply because the last thing they want is for the police to know where they are. Over the last few months, homeless have been arrested and detained just long enough for their belongings to be stolen, I know of a camp that the police burned down right then because they told them not to continue to camp there.

Have something to say? Email us. editorial@comstocksmag.com.

PHOTOS: SHUTTERSTOCK

nce upon a time, back in the days of tech industry yore — that is to say, 2013 — Aileen Lee, a tech venture capitalist and founder of Cowboy Ventures in Palo Alto, wanted to know how realistic it was to find and invest in a tech startup that would eventually gain a valuation of $1 billion. She found that in 2013, just 0.07 percent of venture-backed companies hit this mark — a total of only 39 companies worldwide. She called them members of The Unicorn Club. As of March 2017, the club has exploded: According to TechCrunch. com, there are now 234 unicorn companies with a total valuation of $832.8 billion.

(Of course, in true tech industry excess, unicorn has already quickly become outdated: “Decacorn” is reserved for the rarified few who reach the $10 billion valuation mark, and hilariously, Canadian tech unicorns are referred to as “narwhals.”)

CSU Then and Now

H OMEO W N E R SHIP is more than a name on a deed.

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First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. | NYSE: FAF | 07132920417

DAV I S phone 530.758.2273 425 Second Street Davis, CA 95616

ROCKLIN 916.788.1700 915 Highland Pointe Drive, #140 Roseville, CA 95678

E L K G R OV E phone 916.691.6820 9381 E. Stockton Blvd., #122 Elk Grove, CA 95624

ROSEVILLE phone 916.677.8005 3400 Douglas Blvd., #100 Roseville, CA 95661

FOLSOM phone 916.983.3985 2230 E. Bidwell, #100 Folsom, CA 95630

S I E R R A OA K S phone 916.489.5800 2425 Fair Oaks Blvd., #6 Sacramento, CA 95825

N ATO M A S phone 916.576.1305 4080 Truxel Road, #290 Sacramento, CA 95834

WO O D L A N D phone 530.669.3643 1100 Main St., #140 Woodland, CA 95695

MIDTOWN SACR AMENTO 916.490.4510 3001 I Street, Suite 100 Sacramento, CA 95816

CO M M E R C I A L S E R V I C E S phone 916.920.3100 1610 Arden Way, #101 Sacramento, CA 95815

phone

phone

July 2017 | comstocksmag.com

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EXPERTISE ON THE CONSTRUCTION JOBSITE

SACRAMENTO

ROSEVILLE

801 Broadway, Sacramento, CA 95817

106 N. Sunrise Ave., Suite C-4, Roseville, CA 95661

916-443-1322 | sac.cs@e-arc.com 32 comstocksmag.com | July 2017

916-782-8000 | rsv.branch@e-arc.com

ON THE WEB ONLY

Read the full stories at comstocksmag.com

@ActionItemsPod: “If you want to have a licensed marijuana business in this area, it’s going to cost you $3-5 million” @danielconway

PHOTOS: COURTESY OF HOOP MAPS (TOP), AMBER STOTT (BOTTOM)

Action Items: Mapping Out the Pot Economy

Startup of the Month: Hoop Maps

@SacAppraiser: Just started listening.

Wonder if Sac will be successful in moving residential growers to commercial areas.

Expensive to go legit.

by Russell Nichols

In 2016, brothers Donte and Dominic Morris launched Hoop Maps, which links local basketball players looking for pickup games. Users can set up a game or see games in progress highlighted on a map. To date, more than 50,000 users have downloaded the app.

@WestSacChamber: #TBT #whoworeitbest @comstocksmag edition. Who do u thnk? @mayorcabaldon or @Quirina4WestSac? Celebrate our history @ #stateofthecity May 31

First Mother Farms Launches in West Sacramento

by Amber Stott

Last year, Rubie Simonsen completed the seven-month California Farm Academy program through Center for Land-Based Learning and launched a crowdfunding campaign to kick off her business. To date, she has raised $5,000 toward plant-based wellness and the sustainable farming of herbs and native weeds on First Mother Farms.

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comstocksmag #ArchObs2017 Sacramento's Annual Instagram photography competition is back! 'Architectura Obscura Photography Competition'

July 2017 | comstocksmag.com

33

n EVIL HR LADY

DILEMMA OF THE MONTH

Managing an Insubordinate Subordinate

by Suzanne Lucas ILLUSTRATION: JOHN CHASE

I

recently received a promotion, so two months ago I hired “Jane” to assume the role of my former position. Since she’s been here, Jane has constantly undermined me. She has told lies about my character and my productivity to other employees. It is quite obvious that she intends to do whatever she can to show that I am not fit for my new role. What is the best way for me to document her behavior? I don’t want the documentation to sound like a personal issue; though I must admit that she has referred to how "young" I am, which is offensive to me.

A 34

comstocksmag.com | July 2017

YOU ARE HER BOSS. Let me repeat that.

You are her new boss. You manage her.

There’s a much easier solution to this than if you were peers or if she were your boss. What you do here is simple: You tell her to knock it off.

Before you do that though, discuss the situation with your boss and HR to find out what you are and are not allowed to do about Jane. Some companies allow you to fire people with no notice during their first 90 days, which seems like it

Have a burning HR question?

ILLUSTRATION: SHUTTERSTOCK

Email it to: evilhrlady@comstocksmag.com

might not be a bad idea here. This doesn’t seem like a case where she simply needs some coaching and additional training to get up to speed. This sounds like a character flaw.

To be honest, if you are allowed to just fire her, I would do that immediately. No one has time to deal with mean and vindictive employees. Get the paperwork together, have your manager and HR sign off on it, then sit down with this insubordinate employee and a witness. Tell her today is her last day and wash your hands of a bad situation.

However, if that isn’t allowed in your company, you’ll need to do a bit more. Invite her to a meeting with you and a witness — preferably HR or your manager. If neither of those people are available, then use one of your peers. Under no circumstances should the witness be one of Jane’s peers or one of her direct reports.

The reason I recommend meeting with this employee under the supervision of a witness is that Jane has clearly proven herself to be untrustworthy. You don’t want her to lie about what you said in this meeting. Also keep in mind that the job of the witness is to be just that: a witness only. They don’t need to speak or add to

the conversation in any way — they simply oversee it.

Once you’ve set up the meeting and ensured a witness will be there, here’s what you say: “Jane, you have been saying things about me that are not true. This ends right now. We work as a team in this organization and we support each other. I am happy to give you the tools you need to accomplish your job, but I will not tolerate lying. Is that clear?”

Jane will, of course, deny she lied at all.

Respond with, “Good. Then you should have no problem being truthful and positive from now on.”

Then address the insubordination. Inform her that you are documenting this conversation and will put it in her employee file.

So what happens when she does it again? Well, if she were a long-term employee, I’d say you put her on a 90-day Performance Improvement Plan (also known as a PIP) with clear goals about productivity, gossip, insubordination and lying. But, Jane is not a long-term employee — she’s brand new to the company and she hasn’t earned the benefit of the doubt yet.

I’d say a 30-day PIP is about what Jane can expect from the company. Make sure

you clear this 30-day PIP with your own supervisors before you talk to her. The last thing you want is to say, “You have 30 days to get your act together,” and then have your manager undermine your decision because they don’t agree with your assessment.

Write up everything. Outline clear guidelines for what you expect of Jane. You will need to meet with her at least weekly to go over the PIP. If she fails to meet your expectations — that is, if she continues lying and being insubordinate — at the end of the PIP time period, you fire her.

Now, you may be second guessing your hiring skills since you are the person who hired her. You may need to do some work on improving those skills, but remember that even the most seasoned managers make hiring mistakes. If the next person you hire turns out to also be a jerk, then you’ve really got something to worry about. Otherwise, chalk it up to bad luck. n Suzanne Lucas spent 10 years in corporate human resources, where she hired, fired, managed the numbers and doublechecked with the lawyers. On Twitter @RealEvilHRLady.

July 2017 | comstocksmag.com

35

n ON THE MARKET

LOW INVENTORY BECOMES OUR NEW NORMAL It’s a seller’s market, and potential homebuyers need to up their game

BY Ryan Lundquist

ILLUSTRATION: SHUTTERSTOCK

ONE OF THE MOST PRESSING TOPICS RIGHT NOW IN HOUSING IS LOW INVENTORY. Frankly, there just aren’t enough homes for sale in the Sacramento region, and it’s a problem. If you’ve bought or tried to buy recently, you certainly know this.

Since 2014, we’ve seen the supply of homes for sale in the region cut in half.

I won’t bore you too much with numbers, but right now we have about a 45-

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comstocksmag.com | July 2017

day supply of homes for sale compared to about a 3-month supply of homes just three years ago. What does that even mean? There are only enough homes listed right now to last for 1.5 months.

There are easily three months worth of buyers trying to compete for this small amount though. This is exactly why the market feels so competitive.

What’s causing this shortage? Over the past decade, we’ve had population

growth in the region, and new construction has not kept pace. It’s been nice to see more infill projects, but the truth is homebuilding has been weak since the real estate bubble burst nearly 10 years ago. We are nowhere near the level of construction from 2003 to 2005. On a related note, many builders are struggling to find skilled workers because so many laborers left our market when construction came to a standstill.

We frankly need more homes and apartments built, but that’s a marathon approach. For now, having low inventory has become our new normal. This is welcome news for sellers, but it can be discouraging for buyers.

Additionally, investors went on a spending spree after the bubble burst.

Thousands upon thousands of homes were purchased and made into rentals — instead of hitting the market for sale. For instance, the investment fund Blackstone (DBA Invitation Homes) bought the bulk of their 2,892 homes in Northern California during 2012 and 2013. With so many locals lacking the funds to move or unable to qualify for a mortgage because of a previous foreclosure or short sale, investors picked up the slack.

Let’s be real: We’ve loved low-interest rates over the past five years, and it’s been great when buying or refinancing.

Yet, we’re starting to see the unintended consequences of historically-low rates.

Many owners are sitting on a 3.3 percent interest rate from five years ago, and they just aren’t going to move out and trade up for a higher mortgage unless absolutely necessary. And potential sellers aren’t being pulled out of the area by wage growth or job opportunities elsewhere to make a move, so they’re staying put.

This all sounds negative, but there’s a positive: Low housing inventory means sales volume has been increasing in the region. In simple terms, there are less available listings because more buyers are on the hunt. Also, in years past, a flood of foreclosure listings contributed to greater inventory, and we just don’t have that type of market any longer. In the thick of the economic recession, we saw some dark days in real estate as over 70 percent of all sales in Sacramento

County were bank-owned — it’s now only 3 percent.

We frankly need more homes and apartments built, but that’s a marathon approach. For now, having low inventory has become our new normal. This is welcome news for sellers, but it can be discouraging for buyers — they end up feeling hopeless. There are things buyers can do though to better position themselves to get an offer accepted: Prepare emotionally: Sorry to be a downer, but you probably aren’t going to get into contract on the first home you offer on. Remember, real estate is a bit like dating. You often don’t marry the first person you go out with. So take heart and expect you’ll submit many offers until something sticks.

Shop below your price range: If you are qualified up to $350,000 and money is tight, you might want to consider homes priced $320,000 to $350,000 instead of only looking at houses priced at $349,000. This allows you some space in case of a bidding war.

Remember, it’s not just cash winning contracts: There’s this idea out there that cash investors are gutting the market and leaving everyone else on the sidelines, but it’s simply not true — cash sales in the region only make up about 15 percent of sales each month. In contrast, FHA loans require very little money down and yet are consistently making up 25 percent of all sales in Sacramento County.

Find a way to make your offer stand out: We’re in a market where a house will get multiple offers, so buyers need

to make their offers especially desirable to sellers. The offer probably needs to be at list price or above (assuming the list price is reasonable of course). Don’t ask for every little thing to be repaired, because sellers will get some offers without those requests. Try to make an emotional connection with the seller by writing a letter or doing something out of the ordinary. For example, while touring a home, my wife and I heard the seller was going to send her son to a private school at $1,400 per month. So in our fullpriced offer we said we’d give the seller an extra $1,400 at the close of escrow to help pay for her son’s school. That made an impression and we got the house.

For now, we can expect sellers to continue to have more power than buyers, for a culture of multiple offers to be commonplace, and upward value pressure to persist in some price ranges and neighborhoods (particularly at the lower end of the market). The reality is nobody has a crystal ball to tell us exactly what values will do in the future, but in terms of inventory, there isn’t any indication it’s going to change for awhile. n Ryan Lundquist is a certified real estate appraiser at Lundquist Appraisal Company. Read more at sacramentoappraisalblog.com. On Twitter @SacAppraiser.

Join Ryan every other month as he tackles the big real estate issues of our region.

July 2017 | comstocksmag.com

37

n DISCOURSE

In the Driver’s Seat James Corless, new CEO of the Sacramento Area Council of Governments, on transportation, housing and autonomous vehicles INTERVIEW BY Rich Ehisen PHOTOGRAPH: Noel Neuburger

J

ames Corless has been called “a world-class visionary and leader” in transportation, land use and creative urban planning by Roseville Mayor Susan Rohan. He became CEO of the Sacramento Area Council of Governments in April, after serving as the founding director of Washington D.C.based Transportation for America. We sat down with him to discuss the future of the Capital Region.

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You’ve only been at the helm for a few months. What’s your vision for SACOG? I think Sacramento is poised to punch above its weight, to use a lot of the assets it has to attract talent and to build a really competitive economy. A lot of that is transportation and just making sure people and goods can move from point A to point B. But it’s also the type of communities and neighborhoods that we build. It’s everything from airports and goods-movement down to building into people’s lifestyles — walking and biking and healthy options that are [also] transportation.

You’ve said mid-sized regions like Sacramento are in a good position to accomplish great things. In what way?

Given both our proximity to the Bay Area and the universities and colleges we have in our region, we could be an innovation economy. I look to Denver and Salt Lake City and Nashville — all state capitals that 15-20 years ago people did not really want to move to — and they’ve turned themselves around through a lot of civic leadership and infrastructure investment. I’m not going to say transportation is the key to everything, but Denver and Salt Lake made huge commitments to build out a modern transportation network because tech leaders from Silicon Valley said, ‘We’re not moving here until you clean up your air and give us much better transportation.’ Look at Denver: People want to move there for the mountains, for the great weather and for the sunshine. We have all that here in Sacramento, as well.

Lawmakers and Gov. Jerry Brown endorsed legislation to raise the gas tax and vehicle licensing fees to raise an estimated $52 billion over the next decade for roads and other infrastructure needs. What will that mean for projects in this region?

It’s good news in general. We’ve had a hard time in transportation basically getting consumers to pay for the system, so we subsidize

all forms of transportation and we send really mixed signals to people about whether we want them to ride public transit or drive alone or drive in a carpool. What that package means is you’re going to run over fewer potholes, you’re going to be taking your car to the shop less, our light rail vehicles will look better and our aging bridges will be safer. So, that’s good but we’re playing catch up. The question now is how we actually finance the system in a long-term sustainable way. We don’t have many years left of being able to tax gasoline because we’re going to

“

maybe a little bit of retail and maybe schools. There are ways to redevelop our suburban corridors so they can get better bus service. What we’ve got to do is work with developers to make riding transit as easy as falling out of bed. If you sign up for a new apartment building, part of your welcome packet ought to be a transit pass, a bike share membership and a Zipcar for six months. We should make these things as easy as possible for people when they move into any kind of apartment or condominium complex.

There are ways to redevelop our suburban corridors so they can get better bus service. What we’ve got to do is work with developers to make riding transit as easy as falling out of bed. ”

move to more efficient vehicles. That’s good for the earth, that’s good for the environment, but it’s actually a bad way to pay for modern infrastructure.

How is Sacramento doing in terms of transit-oriented development?

We’re behind the curve on the type of development where you can just walk out your door and jump onto a bus or a train. The good news is we just had our signature transit-oriented development project in the Golden 1 Center.

That is the prime example of how you actually build the type of region that makes it easy for people to get places.

If you think of that as an employment destination, that’s exactly the kind of thing we should be doing. But we also have suburban corridors all over this region that are crying out for investment and revitalization. The face of retail is changing quickly. We’re going to start losing retail and strip malls, and in their place ought to come something unique to Sacramento. It could be mixed-used housing with

California has a significant housing shortage, which is a major factor in the state’s worst-in-the-nation poverty rate. How do we make the kinds of neighborhoods we desire affordable?

The first thing we have to recognize is we are under-supplying housing as a state and as a region. One of the challenges here in the Sacramento region is whether we can revitalize our suburbs.

Can we put mixed-use development in our older suburban corridors? Can we put that housing into small towns and infuse those economies and give people those kinds of options? This is especially true as millennials begin to age. As their income goes up and they look to raise families, they’re not all going to live in downtown Sacramento. We’re going to have to build more walkable suburbs.

Some cities now have programs that link ridesharing services with mass transit, or in some cases even subsidize transit riders to take Uber or Lyft. How would something like that work in Sacramento?

July 2017 | comstocksmag.com

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CHAMBER VIEW

Toasting our Region’s Agricultural Industry California is the largest agriculture producer in the nation, and as America’s Farm-to-Fork Capital, the Capital Region is uniquely positioned as an agriculture leader not just nationally, but internationally. In the six counties that comprise our Capital Region, approximately 75 percent of the land is agricultural, forest, or open space. Agriculture commodities produced in the region are valued at almost $2 billion and the overall “Food and Ag” industry generates more than $7.2 billion in direct economic impact for the region.

As a region that grows, produces, packages, distributes and enjoys food, the Metro Chamber has a dedicated committee working to promote policies and projects that help strengthen the region’s food and agriculture industry. Through the efforts of our committee, and our yearly State Legislative Summit and Capitol-to-Capitol programs, the Metro Chamber champions and advances policies at the local, state and federal level that support our food and agricultural industries and help them grow as regional powerhouses.

Our advocacy efforts are concentrated on a myriad of issues, including: • •

strengthening our water supply reliability, active support of expanding farm-to-school programs that expose children to careers in agriculture and funding for technical education of in-demand agricultural careers, and

•

expanding broadband to bring the latest technology to our region’s farms and rural areas to enhance production by actively managing overall crop health and growth.

We don’t just work hard to advance policies for the industry, we also celebrate the fruits of its labor. It is with that in mind, that we invite you to our annual program celebrating our region’s diverse agriculture producers. At State of Agriculture on August 3, we will take an in-depth look at the agriculture industry through the winemakers’ lens. Join the region’s influential wine industry experts who will share how they navigate an ever-changing future while continuing to treasure the romance of their craft.

If you’d like to be a part of our year-round efforts to advance the industry, join our committee! If you would like to learn from leaders in the wine industry, taste some local wine and meet a new friend, join us at State of Agriculture! Either way, we look forward to celebrating our rich agriculture footprint with you.

Peter Tateishi PRESIDENT & CEO METRO CHAMBER

n DISCOURSE In my former job, we worked with 16 cities around the country to pilot test these ideas. One was in Centennial, Colo., a congested suburb just outside Denver with a parallel light rail where the parking lot was full by 7 a.m. They had a once-an-hour bus that nobody used. It cost a lot of money and it just didn’t work on people’s schedules. So the City said, ‘We’re going to take the same amount of money we spent on the bus and we’re going to entirely subsidize the cost of Lyft to the light rail station.’ There is an integrated app called Go Denver that people can use to buy a light rail ticket and order Lyft all in one. I can see this working in a lot of our communities that have access to light rail. For the commuter trying to get to the light rail station, or even for an elderly person who is trying to get to the health care appointment, this is a transformational technology. Now all of our mass transits in the U.S. are going to have to fundamentally rethink the type of service they offer. … Buses and trains are still going to have a real role to play, but in those really low-ridership routes we’re going to have to really rethink whether running a 40-passenger bus is appropriate when we could actually run a Lyft or a shuttle.

Sacramento is pushing to become a test city for autonomous vehicles. What does this technology mean for the city?

It’s a huge game changer. … I think it is just a couple of years before we really begin to see autonomous vehicles in a bigger way roaming our streets, which could be really good for Sacramento. It could also be chaotic, so this is where we have to get the rules of the game set. We have to really work with our private sector partners so we are not overwhelmed by robot cars running around neighborhoods with nobody in them. That’s the bad scenario. Say I go to a Kings game in five years and I don’t want to pay the exorbitant parking charge at the Golden 1 Center. I could just run my autonomous vehicle through all the neighborhoods and have it come pick me up three hours later — we don’t want that to happen. We might want that autonomous vehicle to run through a bunch of neighborhoods, but we want it picking up people — we want it actually doing work. I definitely want us to be a leader in testing autonomous, but I also want us to be a leader in deploying autonomous vehicles so they are giving the most mobility to the most number of people at the least cost and the least environmental impact. n Rich Ehisen is the managing editor of State Net Capitol Journal. His work has appeared in Sunset, San Francisco Magazine, California Journal, Sacramento Magazine and the Lexis Legal Network. On Twitter @WordsmithRich.

How do you think the Capital Region is doing in terms of transit-oriented development?

TWEET US @COMSTOCKSMAG.

Join Us (916) 552- 6 800 www.metrochamber.org 40

comstocksmag.com | July 2017

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n TASTE

HOW SWEET IT IS After a difficult recession, several Capital Region dessert shops cautiously expand

BY Laurie Lauletta-Boshart PHOTOGRAPHY: Rachel Valley

W

Icing on the Cupcake Kitchen Manager Ryan Headley frosts red velvet cupcakes.

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hen Rocklin-based Icing on the Cupcake launched in 2007, the popular cupcakery was one of the Capital Region’s fastest-growing companies. Between 2009 and 2011, the company posted revenue growth of 368 percent.

Cupcakes were the newest darling of dessert shops and Icing on the Cupcake benefitted from the growing trend.

To keep up with demand, the company expanded quickly, opening new stores in Folsom, Sacramento and Citrus Heights, to go along with its flagship location in Rocklin. But in late 2013, amid growing debt and waning revenue, the company filed for bankruptcy, closing all four stores.

During the economic recession and its aftermath, some restaurants and sweet shops in the region were hit hard by the rising cost of ingredients and cost-conscious customers, and forced to shutter their doors or scale back on business. Islands in Elk Grove, California Fats in Old Sacramento (which was converted to a catering and events venue) and Icing on the Cupcake were just a few that fell victim to the cost crunch. But now, with a recovering economy, many of the sweet shops that weathered the storm are expanding to new locations.

Established shops like Ginger Elizabeth Chocolates in Sacramento and Ettore’s European Bakery & Restaurant, a neighborhood landmark on Fair Oaks Boulevard, have both employed effective strategies to succeed in the sweets business, and with new owners and a conservative business plan, Icing on the Cupcake has reopened its doors. These

seasoned owners all have their eyes on future growth.

THE EARLY YEARS The intoxicating smell of rich, decadent chocolate instantly fills the room at Ginger Hahn’s West Sacramento production site. The 3,500-square-foot space is dotted with macarons, ice cream sandwiches, preserves and chocolate in various stages of preparation. It’s also where Hahn creates the perfect sweets to sell in her popular Midtown boutique, Ginger Elizabeth Chocolates.

Originally raised in the Sierra foothills of Camino, Hahn left to attend the Culinary Institute of America in Hyde Park, New York, graduating at the top of her class. After pastry chef stints elsewhere, she returned to Northern California and saw a need for a chocolate shop in Sacramento. In 2005, at the age of 24, she opened her first business, a wholesale venture selling chocolate bonbons called Couture Chocolates by Ginger Elizabeth.

Soon after, Hahn met her future husband, Tom Hahn, a USC Marshall School of Business alum and a fellow culinary graduate who got his start working for French Laundry and Manresa. The two began to rebrand Hahn’s business and in January 2008, launched the retail boutique in Midtown. Despite the poor economic timing, the business grew. “I think we were a small luxury that people could still afford,” Hahn says. “Even if they weren’t buying as much as they would have, they were still purchasing something.”

Because the business had just opened, it did not have a lot of overhead, but Hahn also employed other tactics to bring in foot traffic. “We used to go outside and sample on the corners,” she says. “We would do everything we could to get people in the door.”

Hahn uses only organic and natural ingredients for her creations and works with 20 different local farms to source products. The shop’s most popular treat is a raspberry rose-geranium bon-bon.

“It flies off the shelf,” Hahn says. “I al-

ways want to make food that people say, ‘Oh my gosh, this is amazing!’ Not just interesting. I don’t ever want to make interesting food. It’s not what I do.”

Ettore’s European Bakery & Restaurant also started from humble beginnings. Ettore Ravazzolo, a Swiss-trained pastry chef, immigrated to the U.S., landing in Sacramento in 1977. With his European experience and tireless work

The Lemon Chiffon Cake at Ettore’s European Bakery & Restaurant.

“I always want to make food that people say, ‘Oh my gosh, this is amazing!’ Not just interesting. I don’t ever want to make interesting food. It’s not what I do.” ~ Ginger Hahn, owner, Ginger Elizabeth Chocolates

ethic, he was quickly hired in large market hotels and fine restaurants across the southern part of the country. In 1983, Ravazzolo returned to Sacramento, where he worked at Viva Croissant for two years. He ended up purchasing this 1,200-square-foot shop in 1985 — it

July 2017 | comstocksmag.com

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n TASTE

Ettore Ravazzolo opened Ettore’s European Bakery & Restaurant in 1985.

became the original site where Ettore’s European Bakery & Restaurant still operates today.

Over the years, the shop has expanded several times; a restaurant was added in the ‘90s and an all-seasons patio was built four years ago. During the height of the recession, between 2008 and 2010, Ettore’s grew 10 percent, which Marketing Director Meggan Rush-Ravazzolo attributes to two things: the quality of the products — all made from scratch, using high-quality natural ingredients — and the relationships the company has with its employees, its customers and its suppliers.

THE EXPANDING YEARS In early 2014, Stephen Des Jardins, a Roseville real estate developer and restaurant owner, along with a team of investors, purchased Icing on the Cupcake’s assets

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and reopened as a single store in Rocklin.

His sister-in-law Reimah Reinert, who was a partner in the venture, bought him out for sole ownership in April 2015. She runs the business with Richard Withrow.

At Icing on the Cupcake, every cupcake is baked fresh daily. The bake crew arrives at the Rocklin store late in the evening and bakes through the night. The first frost crew arrives at 4 a.m. and finished treats are loaded onto the truck at 6 a.m. for distribution. At night, everything is cleared from the shelves and donated to local food banks and food closets.

Since Icing on the Cupcake nearly went out of business, Withrow and Reinert have revived the brand, adding their own flavor and taking a more sustainable approach to expansion. “We take on no debt so that each of our stores is functioning and cash flowing on its own,” Withrow says. In late 2015, the partners

opened a new store in Folsom, and then one month later, launched another in Midtown Sacramento.

Withrow attributes much of the business’s current success to knowing its customers. “We view Icing on the Cupcake as an important part of the fabric of the community,” Withrow says. “We have over 22,000 Facebook fans, and we listen to them.”

After 32 years in business, Ettore’s has also taken a thoughtful approach to expansion. Ravazzolo — who has stepped back from day-to-day operations, spending most of his time focused on research and development — has tasked COO Craig Powell, whom he hired last June, with company operations and continued growth.

Powell initiated what he calls a really deep dive into the market to identify possible locations and buildings for expansion. Roseville moved to the top

of the list. “We identified Roseville as a target market for a couple of reasons,” Powell says. “We believe it is an underserved market, and there is a compelling need for high-quality baked goods like ours. Plus, the demographic profile is phenomenal.”

In August, Ettore’s will open its second bakery and restaurant location on North Sunrise Avenue. The 8,500-squarefoot space includes a large outdoor patio and a banquet room, and is twice as big as the Fair Oaks store.

Also this summer, Hahn will open a second Ginger Elizabeth Chocolates retail shop in San Francisco’s Cow Hollow neighborhood. From the start, it has always been Hahn’s long-term goal to open a business in San Francisco, but she credits the community of Sacramento for making it possible. “Sacramento has shaped me into what I

am today,” she says. “Our menus are inspired by local, organic farms in the valley, and this was a great place to start my company.” n Laurie Lauletta-Boshart is a contributing writer for consumer publications and Fortune 500 companies, including Dwell, ESPN, the Wall Street Journal and the Sacramento Business Journal. Read more at www.wordplaycommunications.com.

Where do you get your sweet fix in the Capital Region?

TWEET US @COMSTOCKSMAG.

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Back Row (Left to Right): Kina Palmer, Bond Administrator; Edward Johnson, VP Construction, Partner; Jana Pilgard, Bond Account Manager; Robert Laux, Account Executive, Partner; Julie Shiroma, Bond Account Manager Front Row (Left to Right): Joel Buschmann, Account Executive, Partner; Kathy Rangel, Bond Account Manager; Dona Lisa Buschmann, Account Executive, Partner July 2017 | comstocksmag.com

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n IMMIGRATION

Now Hiring A dwindling immigrant workforce will have significant impacts on industry vitality and wages — the question is to what extent

BY Steven Yoder

ILLUSTR ATION: Melissa Arendt

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July 2017 | comstocksmag.com

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n IMMIGRATION

I

t’s not yet a mass exodus, but it could be a start. In March, Spanish-language newspaper Hoy reported that in January and February, 26 Mexicans living in three southern California counties registered with their home-country consulates to return home under a program that lets them ship household goods back to Mexico without paying import taxes. Among them was the owner of a cleaning business who was closing down her company. Her husband, who’d been working as a driver, was quitting his job. Both had been in the U.S. since 2000. (Neither gave the newspaper their full names for fear of immediate deportation.)

The departure of long-established but undocumented Mexicans from California is a signal — along with other government data from the southwest border — that the flow of unauthorized immigration is shifting direction, perhaps dramatically.

And that will have implications for Sacramento businesses. Take LF Staffing — the company has 200 offices in seven states, and they’re usually short-handed by a hundred workers for blue-collar jobs paying from $11.50 to $90 an hour, according to the company's vice president, Rick Kempf.

In Sacramento, the company’s office regularly has fewer people than they need — on a typical day in April they were short by eight workers.

Right now, immigration issues impact maybe 10-15 percent of the jobs they’re recruiting for, Kempf says. Still, those positions would be filled if more immigrants had legal documents, since the company can’t hire those who don’t have papers. “It’s frustrating for everybody,” Kempf says.

With a new federal administration has come a promised immigration clampdown. In the Capital Region, the effects of the new policies may be felt most acutely by farmers. But some restaurateurs, builders and labor contractors also say the immigration squeeze will shrink their already-tight labor pool.

THE DECLINING IMMIGRANT WORKFORCE

California farmers have told reporters they worry that they won’t be able to harvest their crops this year if their undocumented workers are deported and fewer immigrants cross the border. A January report from the USC Center for the Study of Immigrant Integration noted that nearly half the agricultural industry’s workers in the state are unauthorized.

Even before this year, the immigrant labor pool was drying up. Layoffs after the Great Recession meant that from 2009 to 2014, 140,000 more Mexicans returned home than entered the U.S., according to a Pew Research Center study.

This year, even fewer people are crossing the southwest border that divides Mexico from Texas, New Mexico, Arizona and California. U.S. Department of Homeland Security fig-

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ures show that the number of people detained along that border fell by 58 percent for the months of February 2017 to April 2017 compared with the same period last year. Even the number of legal southwest border crossers has dropped slightly — down about 4 percent for February of this year and about 1 percent for March, compared with the same months last year.

As for those already here without papers — the limited number of H-2A, H-2B and EB-3 visas that allow low-skilled workers to be legally employed — many more are now targets for deportation. The Obama administration largely focused on sending home those who posed national security threats or were convicted of crimes. But two Department of Homeland Security memos issued in February make clear that the new policies target anyone here illegally.

The fallout of fewer workers coming from the south will be felt not just in agriculture. Undocumented workers are a bigger ingredient in California’s economy than in any other state — more than 1.7 million of them are employed here, double that of second-place Texas, according to the nonpartisan Migration Policy Institute. One in 5 of the state’s construction workers and 1 in 10 in the workforce as a whole are undocumented, according to the USC researchers. Immigrants, documented or not, comprise well over half of those in the food-preparation and food-serving industries, according to the report.

WHO TAKES THE HIT?

Outside of agriculture, construction contractors seem the most worried about the immigration crackdown. Government data show that nationwide there were an average of 190,000 unfilled construction jobs at any one time last year, the highest level since data collection began in 2001. In a survey last year by the Associated General Contractors of America, almost 1 in 3 California contractors said they were having a hard time filling laborer jobs, more than 1 in 4 were having trouble finding concrete workers and 1 in 6 couldn’t find cement masons. More than 1 in 4 reported increasing their base pay rates in the previous year because they were having trouble filling jobs. (For more on this, read “Troubles of the Trade” on p66.)

In the Sacramento region, the trades most impacted by labor shortages are carpentry, rough framing and sheetrock installation, says Matt DeFazio, executive vice president at Brown Construction in Sacramento.

There’s fierce competition for those workers — with contractors poaching from rival firms for 20 cents an hour more, DeFazio says. Under the new immigration policies, he’s uncertain what will happen. “There’s definitely trepidation,” he says. “The Mexican crews that come up to support their

families are good, strong crews — those guys know what Tom Kandris, CEO at PackageOne in Sacramento (and a they’re doing. But they’re going to be less inclined to come if member of Comstock’s editorial board), says the immigration there’s greater exposure or risk. We greatly depend on them, issue doesn’t come up much for his company. Manufacturand if there’s any trepidation on their part about working in ers like him need workers that are on average more highly California, then — let’s just say the shortage won’t improve.” educated with better skills and no language barrier, he says.

One construction supplier didn’t want his name used Even within construction, sectors that need higherbecause he’s in contract negotiations with a union. But he skilled workers — trades like electrical, plumbing and heavy worries what the new policies will do to labor rates. “I don’t equipment operation — aren’t anticipating that the new poliknow if any immigration policy is changing things. But the cies will affect them. “We’re not having a lot of trouble finding fear is changing things,” he says. “During the [Great Reces- people,” says Matthew Evans of Barnum & Celillo Electric. sion], many of my workers went back to Mexico. And many In part that’s because electricians can’t hire anyone not enof them didn’t come back.” He doesn’t want to give specific rolled in a state-approved apprenticeship. The guidelines for figures on wage increases in his business, but says last year the program are strict, so someone without language fluency his company doubled the wage increase it had budgeted for would have a hard time getting in, he says. employees.

The restaurant industry expects something similar. Im- WAGES, AUTOMATION AND ADAPTATION migrant workers tend to fill back-of-house jobs like kitchen The laws of economics suggest that policies cutting the f low prep cook and dishwasher, says Jot Condie, president and of immigrant workers should raise wages and so attract CEO of the California more U.S. citizens to hardRestaurant Association. to-fill jobs. George Borjas of The tough immigration Harvard University, recogenforcement policies of nized as perhaps the leading previous administrations labor economist on immiwere already affecting the gration, argues exactly that. industry, he says. In 2008, “Believe me, if the wages were one San Diego restaurant really, really high, you and I owner was convicted of would be lining up,” he told a misdemeanor for emthe LA Times in March of Caliploying undocumented fornia’s farmworker jobs. workers and paid a Indeed, despite the crunch $400,000 fine after a raid. in the construction trades, Under the Obama adminU.S. Bureau of Labor Statistics ­— Matt DeFazio, executive vice president, Brown Construction istration, there were few data suggest that wages have raids but more visits from immigration officials warning room to grow. Certain trades have seen big wage jumps: restaurants they’d be prosecuted if they didn’t fire undocu- Sacramento-area brickmasons made about $33 an hour on mented workers, Condie says. average in the latest survey of contractors in 2016, 32 percent While Condie also says restaurants didn't see any raids more than in 2010. Drywall and ceiling tile installers were in the first 100 days of the Trump administration, he adds up 28 percent in that period. But carpenters actually saw that there is more fear among restaurant workers about being their wages fall from about $27 an hour to $24. And overall picked up and deported. “We believe that’s been a contribu- wages in the Sacramento metro-area’s “construction and tor to some of these employment problems,” he says. extraction” sector rose just 9 percent from 2010 to 2016, less One temporary labor contractor — Rod Miller of Workers. than the 14-percent total inf lation rate in that timeframe. com in Concord, which serves the Sacramento region — has In the food service industry, there’s no question that so far seen no difference in his ability to fill jobs. Still, hour- rates are rising. The same government data show that wages ly rates for warehouse and production positions have been grew 23 percent from May 2010 to May 2016 in the Sacrarising because of the shortage of workers, Miller says. He ex- mento-metro area for those working in food service. pects that a crackdown on immigration will further increase Spiraling wage rates could end up hurting U.S.-born wages, which he thinks will be good for U.S.-born workers. workers, argues another leading labor economist. If labor The new immigration climate also won’t likely affect sec- costs in construction and food service rise because of the tors that need blue-collar workers with higher-level skills. immigration clampdown, investment in those sectors will

"We greatly depend on them, and if there’s any trepidation on their part about working in California, then — let’s just say the shortage won’t improve.”

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n IMMIGRATION

fall, hurting job prospects for the native workforce, says Giovanni Peri of UC Davis, who also specializes in the economics of immigration. That’s because wage increases can’t keep being passed along to consumers in the form of higher prices — at some point they’ll cut demand, eating out less or buying fewer homes, he argues. Already Condie says that profit margins in the restaurant industry are 3-5 percent, and he worries about what an even-tighter labor market could do to Sacramento as a food destination.

Companies also might control labor costs by automating more. Condie says rising wages are making restaurants look closely at how they can run smarter and more efficiently. That means cross-training workers, retooling food preparation processes, and buying more prepackaged and pre-cut food items.

If there’s a consensus among employers on immigration, it could be on the need for more legal guest workers.

Even Miller, who favors the illegal immigration crackdown, says he’d like to see a program that would let more immigrant workers legally take jobs that are tough to fill. And the National Restaurant Association, National Association of Manufacturers and Associated General Contractors of America have come out for immigration reform that includes an expanded guest worker program. And the AFL-

CIO and other labor unions favor reform, including a more rational system for granting employment visas and legalization for those here without papers.

In May, Homeland Security Secretary John Kelly said that he’ll likely increase the the number of H-2B visas — granted to low-skilled non-agricultural immigrant workers — beyond the current 66,000 annual cap, which many employers have been asking for. In an April 18 executive order, President Trump ordered a federal review of the H-1B program, which employs highly-skilled workers. But the order made no mention of the H-2A, H-2B or EB-3 programs that affect those with lower skill levels.

“We’d absolutely love it,” Kempf says of a reformed guest worker effort. But absent a grand bargain on immigration, wages, along with food and house prices, could increase as enforcement efforts ramp up. Bigger companies can absorb higher labor costs, but smaller ones won’t, Kempf says: “If you keep putting it on small businesses, they’re just going to close.” n Steven Yoder writes about business, real estate and criminal justice. His work has appeared in The Fiscal Times, Salon, The American Prospect and elsewhere. On Twitter @syodertweet and at stevenyoder.net.

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land of

OPPORTUNITY Punjabis in California overcame decades of discriminatory laws to build a new home for themselves in Yuba City — and the community flourishes today

by Sena Christian PHOTOGRAPHY: KYLE MONK

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Karm Bains, son of Didar Bains, outside the main Sikh Temple in Yuba City.

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s the legend goes, Didar Singh Bains arrived in his new home of Yuba City in 1958 at age 18 with only $8 in his pocket, which was enough for him. A young immigrant from India with humble origins, he says he believed that in the U.S. “money could grow on trees.” In the course of his lifetime, that youthful optimism has proven true — ­ at least figuratively­­.

Back then though, Bains was a young Sikh farmer who thought farming was next to godliness. He was raised in a small farming village in Punjab, a state in northern India bordering Pakistan. Sikhism originated in the region and remains a predominant religion there today. In 1948, when Bains was a boy, his father left for the U.S., following in the footsteps of his great-uncle who had eventually settled in the Yuba City area in the 1920s and told of available work and chances to improve their livelihoods. After his father left, Bains started farming in his village to provide for his mother and younger brother until he grew old enough to make his way to California.

Yuba City suited the family. “They chose this region because they felt there were adequate amounts of water, fertile soils and the climate with four actual seasons ­— and the geography, it reminded them of being back home,” says Bains’ son, Karm.

Just like his great-uncle and father before him, Bains started as a farm laborer, driving tractors, irrigating and pruning orchards, earning below minimum wage at $0.75 an hour. Acclaimed for doing the work of four men, he soon became a foreman. But his dreams of one

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day Owning his own farmland and harvesting his own fruit would have to wait until he’d saved up some money. In 1962, Bains’ mother, Amar Kaur, joined her son and husband. Accompanied only

by Bains’ younger brother, who was 13 at the time, she was one of the first Punjabi women to arrive in Yuba City.

Since the first Punjabis emigrated from India to California at the turn of the 20th century, this population has carved out a prominent role in the economy, culture and identity of Yuba City, despite decades of laws that prevented immigration, citizenship and land ownership for Indian Americans.

Most Punjabis here practice Sikhism — a religion they say manifests in their proclivity for hard work and entrepreneurship — and the Yuba-Sutter area boasts one of the largest Sikh populations in the U.S., estimated to be over 15,000. These Punjabi Americans are business owners, farmers, scientists, teachers, real estate agents, government officials, politicians, engineers, doctors, dentists and developers.

“You name it, we’re there,” Karm says.

“Sikhs are hard-working and adventurous people and they’ve moved to all parts of the world. It’s their independent spirit and strength in their faith and hard work that has made them successful.”

Back in Punjab, Yuba City is a desired destination where Punjabis of all religions know they can find friends Clockwise from top left: Amar Kaur (Didar Bains’ mother); Bains as a child with his brother, and family thousands of miles away Jaswant, in Punjab; the first house where Bains lived in a labor camp as a farm worker in from their homeland. They can prosper Wheatland. (photos courtesy of the bains family and the uc davis pioneering punjabis digital archive) while maintaining their cultural identity, which for Sikhs is celebrated most visibly each November with roughly 100,000 people attending one of 78-year-old now owns 40,000 acres in 13 counties and is the the largest Sikh parades outside India. This city, rooted in ag- largest peach farmer in California — and perhaps the largest riculture, is an unassuming place where the American Dream, in the world. elusive to so many, is alive and well.

"I'm very happy," Bains says. "I think I did the best I posAs for Bains, in 1962 he bought his first piece of farm- sibly could for my family and I hope they appreciate it. I've land. He kept adding and adding through the years, and the truly been blessed."

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A SHARED SET OF VALUES

Dr. Jasbir Kang moved to Yuba City in 1991 and soon thereafter cofounded the Punjabi American Heritage Society.

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In 1499, Guru Nanak founded Sikhism in the Punjab region, which encompassed parts of modern-day India and Pakistan, and he traveled extensively to spread his message. “He was a very distinct preacher. The ideas he brought were very progressive,” says Dr. Jasbir Singh Kang, vice president of Rideout Medical Associates and medical director of Yuba Sutter Hospitalist Group. A Sikh — meaning student/disciple, or a seeker of knowledge — follows three golden rules: meditation, dignity through honest and hard work, and sharing one’s earnings with the needy. “Spirituality is achieved through selfless service,” Kang says.

Sikhism is the ninth-largest religion in the world with about 25 million followers, and between 200,000 to over 500,000 Sikhs live in the U.S. (Estimates vary as the Census does not record religious affiliation.) Those who migrated here did so for better jobs, to flee natural disasters or famine, escape violence or religious persecution, pursue education or to join family. In their adopted home, they have found a nation whose values resemble their own.

“American core values, including those enshrined in the Constitution, are entirely consistent with Sikh values — emphasis on equality is huge, merit of working hard and being able to succeed, and to achieve the American Dream,” says Dr. Nicole Ranganath, a historian in the Middle East/South Asian Studies Program at UC Davis and curator of the Pioneering Punjabis Digital Archive. “There’s a very strong tradition of fighting for social justice and human rights.”

Sikhs in California were this country’s first significant South Asian community, even though in India they have historically comprised only a small percentage of the population. The 1849 annexation of Punjab into British India resulted in a scarcity of land, propelling people to seek economic opportunities elsewhere, with the goal of acquiring wealth and returning home. Then, in the late 1800s, Sikhs — known as superior fighters — were recruited into the British Army and colonial police force, traveling overseas and eventually landing in California.

In early-1900s California, Punjabi laborers, students and professionals worked on lumber mills, the railroad and in agriculture, which made use of their traditional farming experience. Punjabis originated from the Indus Valley — in the cradle of civilization — on the fertile floodplain of the Indus River, and this ancient society was among the first to employ modern farming techniques. Immigrants settling in the Sacramento Valley were reminded of Punjab, which means “land of five rivers.”

Clockwise from top left: Jasbir Kang with dog Lucy Black, circa 1970, in Punjab, India; Kang performing community service (foreground with shovel) at the National Social Service Summer Camp in Punjab in 1973; Kang waiting with his mother and sister at the Chandigarh Airport before leaving for the U.S. in 1986. (photos courtesy of the kang family and the uc davis pioneering punjabis digital archive)

But California’s Alien Land Laws of the early 1900s largely prevented Asian immigrants from owning agricultural land or possessing long-term leases (and were finally invalidated by the state Supreme Court in 1952). Additionally, immigration bans stalled the inf lux of non-European immigrants and kept Indian families separated for decades.

Immigration stopped first with the Immigration Act of 1917, which halted newcomers from Asia, and then with U.S. v. Bhagat Singh Thind in 1923, which made Indians (and other Asians) ineligible for citizenship as they were not considered “white” people. Not until the Luce-Celler Bill of 1946 were Indian nationals already in the country able to become naturalized American citizens, and the law set a quota of 100 Indian immigrants allowed into the U.S. annually. Punjabi-run businesses proliferated in Yuba City and the peach industry especially grew, Ranganath says.

That’s how Davinder Deol’s father came here in the early 1950s, when she was a child. Deol, who is now a vice princi-

pal in the Yuba City Unified School District, says virtually all the men in her village entered the lottery, and her father got lucky. But the policy deeply damaged families, she says, as it kept them separated. Over the next decade, her father sponsored his wife, daughter, parents and siblings to come over. In 1965, the Immigration and Nationality Act removed the quota rule, and more Punjabis rejoined their families.

When Kulwant Singh Johl moved to Yuba City from India in 1970 at 20 years old, he ruminated long and hard over whether to remove his turban and cut his unshorn hair.

A month passed before he took out a pair of scissors, believing that doing so would improve his job prospects and allow him to blend in with his new surroundings. “It was a very hard decision to me,” he says. He didn’t send a photo of himself back to his parents in India for five years, worried they would disapprove of their son with short hair and a shaved beard, going against the custom of baptized Sikh men.

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“AMERICAN CORE VALUES, INCLUDING THOSE ENSHRINED IN THE CONSTITUTION, ARE ENTIRELY CONSISTENT WITH SIKH VALUES." — Dr. Nicole Ranganath, Middle East/South Asian Studies historian, UC Davis

subcontinent, separating the Hindu-majority India and Muslim-majority Pakistan. (Punjab was split into two provinces now in two different countries, with Muslims relocating to Pakistan, and Sikhs and Hindus fleeing to India.)

In the aftermath, sectarian violence erupted and Punjab became the epicenter. Up to 15 million people were displaced in what remains the largest human migration in history, and more than one million people were massacred — within only one year. “The Punjabi people paid the heaviest price for India’s freedom from British rule and the wounds from the partition have not yet healed today,” Ranganath says.

Then, in the 1980s, a Sikh leader named Jarnail Singh Bhindranwale advocated a separate homeland. Many Sikhs felt the Indian government was being too heavy-handed with its policies, instead of using peaceful, democratic means to address its grievances. In 1984, Bhindranwale and his armed followers holed up in the Golden Temple — the most sacred gurdwara, or place of worship for Sikhs — and Indian Prime Minister Indira Gandhi ordered a raid by the national army; hundreds of people were killed. In retaliation, Gandhi was assassinated by her two Sikh bodyguards. Mass violence against the Sikhs followed — a violence, Ranganath says, never addressed or acknowledged by the Indian government — that would lead to another wave of Sikh immigrants in the 1980s.

EMBEDDED IN YUBA CITY

After Johl arrived, he attended Yuba College and Chico State, earning a degree in agricultural science. He now works as an agricultural pest control adviser and took over the 1,000-acre family farm, which grows peaches, walnuts, almonds, prunes and pomegranates.

Johl was not the first of his family to emigrate from Punjab. In 1906, his grandfather Nand arrived in the Yuba City area, leaving behind his wife and infant son. “When [my grandfather] came here, my father was 2 years old and they never met each other again,” Johl says. Nand was able to purchase farmland in 1946.

Meanwhile in 1947, the Partition of India marked independence from 300 years of British rule, but it was accompanied by a widespread bloodbath. Partition divided the

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Punjabis enjoy living in Yuba City for the same reasons as their neighbors: a family-friendly, small-town feel; affordable cost of living; good schools and abundant outdoor recreation, with the nearby Sutter Buttes and Feather River. “The Sikh community is very embedded here and is very much a central part of our community,” says Rikki Shaffer, CEO of the Yuba-Sutter Chamber of Commerce, which covers two counties and four cities.

While Shaffer can’t pinpoint exactly how many of the chamber’s 601 members are Sikh or Punjabi — the organization, of course, doesn’t track members’ religious or ethnic backgrounds — she says these residents play an important role in the region’s economy, including the three main industries of agriculture, medicine and military. (Beale Air Force Base is in Yuba County.)

“One of the things that sticks out to me is their open-door and welcoming policy to anybody,” Shaffer says. “Anybody can seek help from a Sikh temple.” For example, a gurdwara is a place where a person of any faith can get a free meal three times a day in the communal kitchen. The annual Nagar Kir-

Each November, roughly 100,000 people attend the Nagar Kirtan Sikh parade in Yuba City, making it one of the largest Sikh parades outside India.

Started locally in 1980, the parade commemorates the receipt of their holy scripture, Guru Granth Sahib. (photo courtesy of ranjit s. kandola)

tan Sikh parade in November is also a major boost to the area, Hitpal Singh Deol came to Yuba City in 1974 at 19 years old with the 100,000 people it attracts. “Every hotel is booked,” for an arranged marriage to Davinder. “I knew how to read Shaffer says. “They’re very welcoming to the entire commu- and write, but I wasn’t fluent in speaking English, because nity to come and be part of that celebration.”

I never had to,” he says. He did farm and factory work until Along its five-mile route, the parade passes the Sutter saving enough cash to purchase his first Subway 25 years ago.

County Community Memorial Museum — which houses a He now owns a total of three in Oroville and Gridley. permanent exhibit on local Punjabi history — to the city’s “Literally, I think all Subways in California are owned by main gurdwara, built in 1969. On a recent afternoon, as Dr. Punjabis,” Kang says, laughing, during a recent lunch of Thai Kang drives to the temple, he talks about his decision to leave food with his friends Deol and Johl. “Quite a few,” Deol acIndia in 1986 at age 23. His father was a successful veteri- knowledges. Same goes with convenience stores, gas stations narian and they had a comfortable life in a nice city, but the and other food chains. Trucking companies are the next turmoil of the era threatened his freedom of speech and safety. frontier, they say. The men agree that a desire exists among “I always read about JFK and Lincoln, and they were he- Punjabis to work hard enough to become their own boss. roes to me,” he says. “I have no regrets coming here.” After “The work ethic and the drive to succeed is the big factor completing a residency in internal medicine in Chicago, he in being able to do what I have done so far,” Deol says. “That’s moved to Yuba City in 1991 at the behest of a mentor who told true of most immigrants, it doesn’t matter which country him to go where he was needed. A couple years after arriving, you’re from. You’re giving up your own country, your own Kang cofounded the Punjabi American Heritage Society and home, for that success. If you don’t have that drive, then it then the Punjabi American Festival, which occurs each May. doesn’t make sense to move to that new country.”

He has become a leader in the community and vocal activWhile cultural tensions remain, Deol says they have ist on the ways in which Punjabis contribute to the region. “I grown less frequent. One time a Subway customer emphadon’t think personal success is all that important,” he says. sized that he only wanted white stuff on his sandwich, trying “It’s how it translates to your family and community that re- to stir up trouble. Deol asked if he wanted “wheat — the brown ally matters in the long-term.”

— bread” or “black olives.” He says the customer laughed and

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The Punjabi American Festival is celebrated each May in Yuba City.

still comes in today. “I think it’s all on how you handle a situation,” Deol says.

Another time at the Santa Cruz Beach Boardwalk, someone told Deol’s family to go back to where they came from: “He’s just ignorant. He doesn’t know,” recounts Deol, who is Sikh, saying that he doesn’t take things personally.

Sikhism, adds Kang, teaches its followers to be confident and strong, and ignore petty comments. “Otherwise,” he says, “we couldn’t be here if we worried about little things.”

The mainstream community, he says, “has very much accepted us as part of them.”

That’s partly due to Yuba City’s Punjabi Americans becoming more civically involved. In 2009, local resident Kashmir Gill became the first Sikh elected as mayor anywhere in the U.S., and in 2014 Preet Didbal was likely the first Sikh woman in the nation elected to a city council, and now serves as vice mayor. State laws have also helped ease decades of discrimination and prejudice, including one that protects workers who wear turbans and other religious attire or hairstyles. But there remains room for progress, says Karm, son of Didar Bains. Punjabis are in the early stages of working with city and county officials and law enforcement to launch “Yuba City United,” an outreach campaign he says aims to remind residents of different ethnicities, nationalities and religions that “We’re all one.”

“It’s all one big community,” says Prem Hunji Turner, who grew up in Yuba City and now lives in Sacramento.

Her mother was Hindu and her father was Sikh, and before Yuba City’s Hindu temple was built in 1996, the family would visit a gurdwara. Turner’s father came over in 1948, then worked as a peach and walnut farmer. At 99 years old, he donated $100,000 to local charities, before passing away earlier this year. Her late mother arrived in 1952 and in her 50s studied the English language at a community college. Shortly thereafter, she became the city’s first real estate agent of Punjabi descent, running Hunji Realty.

For the first generation of immigrants, the goal is to survive and for the second to achieve economic success for their families. For third generations and beyond, the focus is on living a full life. Kang wants his three children — who are studying medicine, filmmaking and finance — to explore the world, have new experiences and figure out what they want, which might mean leaving Yuba City.

Simply having this option to pursue their own dreams available to his children means Kang has attained what he came here for: the American Dream. His friends feel the same.

“I haven’t found a Sikh saying anything bad about America,” Kang says. “They love this country better than anything else.”

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BECOMING THE PEACH KING

Thirty-seven years ago, Didar Bains — whose first name means “visionary” in Punjabi — thought of starting an annual Nagar Kirtan Sikh parade in November to commemorate the receipt of their holy scripture, Guru Granth Sahib, in 1708 and to integrate his Sikh community into the larger Yuba City community. “First and foremost, there was that wish for acceptance,” says his son, Karm. “We look different, we have different religious beliefs. But in our religion, we believe in one God and we are all children of God.” But his father’s peers pushed back, worried the celebration would fall victim to verbal altercations, disruptions or even violence. “My dad was like, 'There’s one way to find out,'” Karm says. Bains, with both his farming operation and role in the parade, which grows every year, has brought international recognition to the Punjabi Americans of Northern California.

While Sikhs are supposed to refrain from being prideful, Karm says it’s hard to not be proud of his father’s accomplishments, which has had ripple effects for the entire extended family — who are involved in agriculture, growing peaches, prunes, walnuts and almonds, and maintaining a diversified

land-development portfolio, including commercial, industrial and residential landholdings. Bains and his wife, Santi, raised three children, who are now grown with their own children.

“All of this with God’s grace,” Karm says. “We’re just here as stewards of the land to tend to [the fields] for the time being. We’re really fortunate and grateful for the opportunities this country has given us.”

During an inaugural visit to the Sikh temple in West Sacramento in 2014, Gov. Jerry Brown recognized Bains as the “Peach King” of California, and referenced the millions of dollars he has donated to nonprofits and schools in the U.S., Canada and back in his homeland of India. And, this past November, the Yuba City Council held a special meeting and reception to honor Bains as a community leader for his “incredible contributions” and for “enriching our cultural heritage.”

“That was hands-down,” Karm says, “the proudest moment of my life.”n Sena Christian is the managing editor for Comstock’s. On Twitter @SenaCChristian or senachristian.com.

Embed: The 1964 wedding of Didar Bains and Santi Poonian in Marysville. (photo courtesy of the bains family and the uc davis pioneering punjabis digital archive) Above: The Bains' peach orchard in Yuba City.

Right: Three generations of the Bains family at the Yuba City home of Karm Bains.

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600 Q Street, Suite 100, Sacramento, CA 95811 | 916.329.4000 | » nachtlewis.com

WHAT CAN YOU ACCOMPLISH IN 95 YEARS?

I

n its 95 years in business, Nacht & Lewis Architects, Incorporated has become part of the fabric of Sacramento and the surrounding communities, creating landmarks, shaping the skyline, and establishing itself as part of the city’s history. Founded in 1922, this design firm has added iconic buildings to our landscape throughout multiple decades, and continues enhancing Sacramento today.

In 2010, the firm completed the Central Utility Plant, a project that brought a new level of environmental sustainability and iconic design to an existing aging facility.

“A building is an important investment on multiple levels and making sure clients have a long-term outlook is critical,” says Parrott. “Any building must work now and in the future, standing the test of time both structurally and aesthetically. We must envision that timeless creation and balance that vision with budget limitations, maximizing what we can do for our clients.”

“In another 100 years, we want people looking back at what we’re designing today with admiration for the timelessness of those buildings. We thank Sacramento for supporting us for nearly a century and look forward to continuing to shape the city over the next 100 years.”

Michael Parrott, AIA, LEED® AP Nacht & Lewis President

Alhambra Theater, Sacramento, CA

Founder Leonard F. Stark’s principles continue to thrive at the firm. “His core values still drive us,” says Mike Parrott, President. “We embrace being a part of the community, integrity in all business dealings, and designing thoughtfully – making sure our design is timeless.” Backed by 21 years with the firm, Parrott now guides the company forward. “We strive to be a good steward of our environment, to empower our team to be the best they can be, and to deliver on our commitments to our clients.”

Nacht & Lewis projects can be found throughout Northern California in the civic, education, healthcare, justice and public safety markets. The firm’s legacy projects include the venerable Elks Tower, one of Sacramento’s first high-rises, McClatchy High School, and the legendary Alhambra Theater. Other, more recent landmark projects include the Gordon D. Schaber Sacramento County Courthouse, the Robert T. Matsui Federal Courthouse, and Inderkum High School in Natomas, a cutting-edge facility in both planning and environmentally sustainable features.

With each project, the firm employs a solutions-based approach to design that is carried through every phase of the job and brought to life using the latest visualization technologies. “Some people struggle to envision a project through traditional two-dimensional drawings,” notes Parrott. “Building on video game technology, we now create three-dimensional, virtual reality environments to help them fully understand the design before it’s actually built.”

Robert T. Matsui Federal Courthouse, Sacramento, CA

Cultivating young talent is one of the firm’s footholds on the future. The Nacht & Lewis team is made up of strong leaders employing sound business principles and imaginative and strategic problem solvers who genuinely enjoy collaboration for the best project outcomes, having fun together and with their clients along the way.

As this legacy firm approaches its Golden Anniversary, they strive to design more environmentally-friendly, energy-efficient, healthier buildings that create contentment and a sense of well-being for owners and occupants alike.

■

Article by Jennifer von Geldern, Comstock’s Layout by Megan Garon, Nacht & Lewis

Founder Leonard F. Stark encompassed

Sacramento Timeline Photos:

1999 1989

1965 1965

911 Dispatch & Training Facility DVA Sacramento Medical Center North Natomas Public Library Sacramento Zoo Giraffe Exhibit

1927

Sutter Memorial Hospital Gordon D. Schaber Courthouse Sacramento County Jail KXTV Channel 10 Tower Inderkum High School

1924

The Elks Temple McClatchy High School

1937

(Left to Right)

2010

2010 2010

2008 2006

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The Nacht & Lewis team in front of the Department of General Services, Central Plant Renovation, Sacramento, CA.

n CONSTRUCTION

Troubles of the TRADE As the Sacramento region fails to meet housing needs, builders scurry to train a much-needed new workforce

BY Russell Nichols PHOTOGR APHY: Mike Graff

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T

he plans were all set, the schedules in place. In 2013, Homes by Towne of Sacramento was forging ahead with its first project since the housing market collapsed. This was Cascade Crossing, a single-family community in Grass Valley with 80-plus homes, front porches and gourmet kitchens. But something was missing: workers.

Framers. Plumbers. Electricians. Drywall mechanics.

Painters. So many trade workers were gone. In the throes of the recession, they moved on to other industries. The labor shortage created delays that forced the schedules to keep changing.

“The shortage of labor is a very real thing, from the land development standpoint to the homebuilding standpoint,” says Jeff Pemstein, HBT division president who also chairs the California Building Industry Association. “We’re having to jockey which projects are going to get attention.

There are only so many bodies to go around to work on these projects.”

Pemstein didn’t quit. He says his best strategy was staying in communication with his trade partners and subconsultants. He learned to give them advance notice for any services required on each home. That way they could balance their staffing and workload, and do everything they

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could to meet the project’s needs. He also learned to make sure contracts and agreements are clear and every vendor gets paid on time. This summer, Cascade Crossing is set to open, and Pemstein now applies these lessons learned to all housing projects.

“Presumably the labor shortage will not last forever, but good relationships can last a lifetime,” he says. “We try to treat our trades and sub-consultants as an integral part of the team.”

But the Capital Region still needs workers. The Sacramento Area Council of Governments reported that between 2013 and 2021, the region needs to build about 105,000 housing units to meet demand. Dividing that number by the nine years means almost 12,000 units per year. There were 4,500 new units built last year, according to North State Building Industry Association. This year, the greater Sacramento region is on track to hit about 6,000.

Throughout the region, the pace has picked up since 2012, but Michael Strech, president and CEO of the North State BIA, is aware that momentum can also be misleading.

“We feel busy because, not long ago, we were building 25 percent,” Strech says, but he remains focused on the goal: “We need to pump out more housing units to make sure everybody has a choice in homeownership.”

The Creamery, a residential project in Alkalai Flat, is slated for completion in 2018.

THE SLOW BUILD

In the early 2000s, it would take three to five months to grade a site and get it ready for building a home, Pemstein says. The construction itself would take 90 to 120 days. Now, in this post-downturn market, it takes twice that long primarily due to limited labor, which Pemstein calls “endemic” to all Sacramento homebuilders.

It’s no surprise that so many workers ran away. With the housing market in a prolonged dry spell, some qualified trade contractors ditched the region for greener pastures. Some stayed in the industry, but took jobs in oil, agriculture or commercial sectors. But the labor shortage has opened the door for a new generation of workers. This year North State BIA launched its 5Kin5 Initiative, hoping to recruit and train 5,000 new workers over the next five years.

To grow the potential workforce, the program seeks to reach high school graduates or those from certificate programs in community colleges — and convince teenagers and

young adults that building homes is a viable job opportunity — through job fairs and regional youth programs. The jobs are framed as a starting point from which workers can develop a range of transferable trade skills, if they later choose to become a plumber or electrician or site superintendent, for instance.

“If we have 5,000 more in this business, we can keep them all busy,” Strech says. “We’re looking at folks involved in all kinds of areas and we’re here to explain that construction is a way to go.”

It’s critical to attract young talent as soon as possible, not just to meet demand, but also because many industry professionals are approaching retirement. Their guidance and training for the next generation needs to happen before they leave too, Strech points out. About 60 high schools in the area have construction-related programs.

One of them is Cordova High School. In Rancho Cordova, this school offers courses in residential and commercial con-

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struction. Andre Leineke runs the new program, which he says attracts students with a hands-on learning style who don’t want to be “stuck in a desk all period.” Field trips, training seminars and summer internship opportunities also draw in students.

Each May, as part of the Sacramento Regional Builders Exchange competition, students transform a pile of lumber into a shed they designed. Last year, Cordova High won and competed in the state championship. “Between the sense of accomplishment in making projects and the job opportunities, motivating students has not been that difficult,” Leineke says.

But homes are not built on motivation alone.

HELP TO PAY

This housing crisis is a double-edged sword of Economics 101. The lack of supply means an increase in demand, which drives up costs in a state that’s already one of the most expensive to live in. In California, the average single-family home is more than double the national average, according to the Legislative Analyst’s Office. So even if new workers build enough homes, will any of them be affordable?

This is the question on the mind of Darryl Rutherford, executive director of the Sacramento Housing Alliance. He believes Sacramento lacks any real strategy to developing affordable homes, especially at rates affordable for the bluecollar workers so desperately needed.

In recent years, he says, many projects have started out one size, only to be cut down in scale due to resources. With residential development scaling back, the number of affordable homes goes down too. Even if you identify areas that would be ideal for affordable housing, a developer needs local funding that just isn’t there, he says.

The Sacramento Housing and Redevelopment Agency manages the affordable housing fee programs for the City and County: one for market-rate residential developments and one for commercial developments. A couple years ago, the City and County revised their affordable housing development programs — from a mandatory program to include affordable housing within a market-rate development to a voluntary program. Developers can now either choose to build affordable homes or pay a fee of $2.69 per square foot, which Rutherford says is too small a fee to see any real impact.

“We’ve been arguing that those fees should be increased,” he says. “But the other thing is there needs to be a

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HVAC Apprentice | Carey Roy-Enis

5

THE CREAMERY AT ALKALI FLAT Location: 10th and D streets, Sacramento Developer: BlackPine Communities Residential units: 122 tri-level homes for sale in an 8.5-acre community, with a quarter-acre dog park, half-acre urban garden and planter boxes, and promenades for walking or neighborhood gatherings Status update: Estimated completion date of fall 2018

PRESS BUILDING Location: Q and 21st streets, Sacramento Developer: SKK Developments Residential units: 260 rental apartments in a five-story building constructed on top of the former parking garage of the Sacramento Bee in Midtown. Ground floor will include 7,000 square feet of retail space.

Status update: Expected to be completed by summer 2019 21st Street & Q Street

Q STREET

81,76

6)

RETAIL

LOBBY RETAIL

21ST STREET

LOBBY

20TH STREET

real concerted effort to find new funding sources outside of the development community. Other sectors need to be stepping up.”

Rutherford can’t recall any successful projects funded from other sectors, but he believes alternative sources of funding are critical to solve this crisis.

In April, the Alliance made recommendations to the Sacramento City Council, proposing a two-pronged approach to help address affordable housing and homelessness needs: a bond to address the immediate need, followed by a more permanent source like a real estate transfer tax or increased sales tax.

According to a recent report by the California Housing Partnership Corporation, federal and state funding for affordable housing in Sacramento County has decreased by 66 percent since 2008. The Sacramento City Council held a housing workshop in April and opened up public discussion on June 20 specifically on housing. Mayor Darrell Steinberg says he plans to use this input to put forward solutions in the coming months.

Also looming over the industry is the idea of a prevailing wage, which is defined as the hourly wage, usual benefits and overtime paid to most trade workers in the largest city in a given area. Some lawmakers have pushed proposals to expand prevailing wage mandates on more private residential projects, a move North State BIA is dead set against. If any prevailing wage law passes, the costs of homes would jump at least 45 percent, according to a report by research firm Beacon Economics.

“It will completely disrupt and decimate the homebuilding industry,” Strech says. “It would benefit a very small amount of people who would make a ton more money building a house. I don’t think this would benefit the workers as much as the people doing the real estate transactions, buying land and buying finished lots. We’re

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diligently and consistently making ourselves aware of everything happening, to make sure that prevailing wage does not become an issue in the future.”

NEED A LIFT?

Natomas has seen both extremes of the housing wave. In the early 2000s, new subdivisions were sprouting up everywhere. Then in 2008, the Federal Emergency Management Agency declared that the levees around the basin badly needed an upgrade to prevent flooding. A building moratorium went into effect.

Two years ago, that moratorium was lifted, with some expecting a swell of development backlog to come pouring in. But so far, the growth has been moving at a controlled pace, reflecting the new realities of this post-recession market. But don’t think Natomas is lagging. In fact, this year the construction valuation is on pace to be the highest

since 2007, according to Ryan DeVore, director of Sacramento’s Community Development Department. In the last two years, he says, they’ve finalized or issued more than 1,000 permits in Natomas.

“We were building citywide between 100 and 300 units,” he says.

“We’ll do over 1,000 this year. It’s much higher than it was, but it’s not the 3,000 it was during the boom.”

Candela, a new subdivision in Natomas, was among the developments completed in recent years. The project consisted of 10 houses, which the New Home Company built all at the same time to keep trade partners engaged, says Kevin Carson, Northern California president of The New Home Company.

To navigate the labor shortage, Carson prioritizes accurate and precise scheduling. The logic is simple: If a framer, for example, knows that every month the homebuilder will release

three or four houses, the framer will be more inclined to stick around, he says, adding that the more activity there is, the more secure workers feel. He notes that one project currently under construction, McKinley Village in East Sacramento, has five different housing programs, including a large clubhouse, production homes and models.

“You don’t want to call a plumber and have the house not ready to be plumbed,” Carson says. “Trade partners only want to work for builders prepared and ready for them. They’re more willing to go onto the property when they see a future.” n Russell Nichols is a freelance writer who focuses on science and technology, mental health and criminal justice. His work has appeared in the Wall Street Journal, The Boston Globe, Governing magazine and Government Technology.

On Twitter @russellnichols.

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SACRAMENTO-SIERRA’S BUILDING & CONSTRUCTION TRADES COUNCIL THE BEDROCK OF OPPORTUNITY AND HOPE

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he craftwork of the thousands of men and women in the construction trade unions has been woven into our lives throughout the Sacramento region — at our capitol, in our schools, in our workplaces, and in our homes — for more than 100 years.

Sacramento-Sierra’s Building & Construction Trades Council helps these professionals develop the skills that enable them to secure their American Dream.

The SSBCTC is a performance-based organization providing contractors with the highest skilled and trained workforce in the construction industry completing projects on time and under budget.

Founded 47 years ago, SSBCTC represents more than 15,000 union construction workers in Sacramento, Amador, El Dorado, Nevada, Placer, Sierra and Yolo counties.

“We are a multi-employer human resources department,” notes Kevin Ferreira, Executive Director. “Our goal is to improve, enhance, and enrich the lives of working men and women of Labor by being the best trained and most productive workforce in the industry. We also

strive to provide opportunities, outside of a fouryear college track, for individuals to work toward a solid middle class lifestyle.”

SSBCTC has 32 apprenticeship programs/career pathways, also known as Joint Apprenticeship Training Centers. JATCs provide all the training and certifications needed in the ever-changing environment of construction, ensuring the highest trained and skilled workforce through management/labor partnerships. Through these partnerships, the training curriculum can be adjusted for technology’s increasing influence in the construction industry.

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mysteries of the

Gut instinct

Unraveling the science of the body’s ‘second brain’ offers insight into the role the stomach plays in our mental health

BY Jeff Wilser

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W

e’ve all been there: You’re waiting to give a big nervous system. “The two nervous systems are very much inpresentation, maybe you dread public speaking, tertwined,” Guardino says. “You can think of them almost like and you feel your stomach twist itself into a pret- conjoined twins.” Remember those butterflies in your stomzel. Or maybe you meet someone new, someone ach I mentioned earlier? That’s the ENS revving you up. interesting, and when they make eye contact you The gut also pumps out serotonin, which can sway our feel your stomach do a joyful little flip. It happens all of the mood. (In one of history’s gloomiest experiments, a 2014 time. We feel things before we have time to mentally process. study from Norway found a link between depression and But what if things like “butterflies in your stomach” are stool bacteria.) “We used to compartmentalize things so more than just cutesy cliches? Scientists are discovering much,” says Dr. Maxine L. Barish-Wreden, medical director that our guts are more complex and influential than we had of the Sutter Institute for Health & Healing in Sacramento. fathomed. Our stomachs don’t merely send messages to our “We’d say, ‘There’s the brain, and there’s the nerves, and brain regarding hunger or digestion. The signals can have they’re each doing their own thing.’ But they’re all coma fundamental impact on how we feel throughout our bod- municating with each other, all the time. When you disturb ies. “Gut health is more the system in one area, that important than most affects everything. It’s like people think,” says throwing a pebble in the Dr. Jason Guardino, pond.” a gastroenterologist Perhaps this connection at Kaiser Permanente shouldn’t be too surprisSouth Sacramento ing. “If there’s something Medical Center. “The wrong in your gut or you’re bacteria in our gut have not digesting your food the ability to affect our well, of course it affects body’s vitamin and your mental state,” says Dr. mineral absorption, Jonathan Eisen, a profes— Dr. Maxine L. Barish-Wreden, medical director, our hormone regulasor of evolution and ecology Sutter Institute for Health & Healing tion, and it plays an at UC Davis who has been important role in our studying the gut microbe immune response.” for nearly 30 years. He It even plays a role in our mental health. Scientists are dis- speaks on a headset while riding his bicycle to campus, covering new ways of understanding how the gut's secrets can his voice calm and somehow not winded. “That all seems help us boost our mood, sharpen our memory and even live sort of obvious,” he says. “To me, what is more interestlonger. (OK, it can also keep us regular.) ing is that we’re starting to understand how the gut has an impact on the rest of the body, and what the microbes THE COMPLEXITY OF THE STOMACH are doing that might impact anxiety or affect the immune Gut health is an awkward thing to talk about. If you break system’s development.” your ankle, you can make jokes about your crutches, chat about the rehab and milk a bit of sympathy as friends sign A RAINFOREST OF BACTERIA your cast. But problems with your stomach? This invokes The gut is teeming with bacteria — billions of bacteria beconcepts like bloating, flatulence, constipation, diarrhea and longing to over 10,000 species in an ecosystem of staggering “bloody stool.” The subject is taboo. complexity. In 2007, the National Institute of Health launched “Everybody knows about the heart and the lungs,” the Human Microbiome Project, with a goal of analyzing, Guardino says. “They’re always in the news, and they’re the coding and classifying this labyrinth. (Think of the quest to sexy topics.” map our DNA, but in our stomachs.) That study has revealed And yet the gut houses one of the most important clusters a vast ecosystem of genes, bacteria, viruses, yeast and paraof nerves in our bodies. The enteric nervous system, often sites living together, and the harmony (or lack thereof) of this called the “second brain,” is threaded in the lining of our ecosystem has significant impacts on both our physical and stomachs — so problems in our belly can lead to problems in mental health. “It’s like a rainforest in your gut,” says Barishour ENS. The ENS controls the gut independently from the Wreden. “It’s like outer space, but inner space. And we’re just brain, though it is in regular communication with our central starting to see the impact.”

"It’s like a rainforest in your gut.

It’s like outer space, but inner space. And we’re just starting to see the impact.”

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The gut, in a sense, functions as the barrier between the external world and our inner-selves. A weak barrier can make us physically or mentally weak. “When you have unhealthy patterns of bacteria, you’re more likely to have gut permeability, or ‘leaky gut,’” Barish-Wreden says. “When the gut barrier is not strong, then pathogenic bacteria in the gut are allowed to pass through the gut wall.” She likens this barrier to guardians at their post, keeping an eye out for intruders, dubbing everything from foods to external forces as either friend or foe. Because 70 percent of our immune cells are in or clustered near the gut, the gut impacts how well we combat diseases, stave off fatigue and absorb vitamins.

Ninety-five percent of your body’s serotonin lives in the gut. That feel-good matter then gets zapped from your gut to your head. We tend to think of the brain zapping signals to the rest of the body, but actually it’s a two-way street. So problems in the gut can cause problems in the mind, such as depression, anxiety and autism. “Recent evidence indicates that not only is our brain ‘aware’ of our gut microbes, but these bacteria can influence our perception of the world and alter our behavior. It is becoming clear that the influence of our microbiota reaches far beyond the gut to affect an aspect of our biology few would have predicted — our mind,”

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explain Stanford University’s Erica and Justin Sonnenburg in The Good Gut. For an example of how the gut can impact our mental state, in a 2011 study of mice at McMaster University in Canada, a strain of “shy” mice were given the gut microbes of a more “aggressive” strain of mice, and once the rodents lived with their friskier counterparts’ gut microbes, then they, too, began to act more aggressive. Change the microbe, change the behavior. It’s easy to see how this could, potentially, lead to ground-breaking changes in how we think about food.

Eisen’s team at UC Davis examines the ecology of gut microbes, using the same analogy as Barish-Wreden. “It’s similar to how people would study a natural rainforest,” he says. Where does each gut microbe come from? How do these millions of microbes relate to each other? Can they be mapped? How do they change over time? “Just like you look at how a volcano is born from an island, we try and look at where the gut microbes come from,” he says.

Scientists are now analyzing the fecal matter of babies, then seeing how that changes over time — while breastfeeding, at 2 years old, then at 4 years old, etc. When Eisen began his research in 1989, it took him a year and a half to sequence 1,500 “bases” of gut DNA. But now, thanks to faster computers

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and miniature robotics that can create “test tubes the size of your thumbnail,” his team can now sequence a billion bases in less than a day. He hopes this research will eventually give us clearer answers to question like: Could antibiotics be causing more problems than we realize? Do they wreak havoc on our gut’s ecosystem (and thus flummox the ENS and our brain-axis), just like how, say, carbon dioxide could change our environment?

So far there are more questions than answers. But while this precise mapping of the gut’s microbe is a new phenomena, Barish-Wreden says we’ve seen the clues for decades. As far back as 1908, a Russian scientist by the name of Ilya Mechnikov found that people in Bulgaria lived longer than in other countries, and their diets had one key thing in common: They were high in fermented milk products, like yogurt. He

was one of the first to cite the benefits of “good bacteria” in our guts, and he has been called “the father of probiotics.”

Speaking of …

PROBIOTICS AND THE BRAIN

At the most basic level, scientists have found that some bacteria are good for us, some bad. A condition called dysbiosis occurs “when we have too many ‘bad bugs’ that have overtaken the ‘good bugs,’” Guardino, of Kaiser, explains.

Dysbiosis can trigger not just the expected symptoms like inflammatory bowel disease, but also seemingly unrelated conditions like acne, anxiety and multiple sclerosis.

If you follow the “second brain” to its logical conclusion, then you might wonder: Should we take supplements for our gut? If the gut can influence our moods and even change the workings of our brain, why not give it a

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boost? Enter the world of probiotics, a live bacteria yeast that stimulates the growth of microorganisms, especially those with beneficial properties.

It’s true that probiotics are very real and our gut needs them for proper digestion. The experts I spoke to all agreed that they might recommend probiotics in a short-term burst to help with a temporary illness, such as irritable bowel syndrome, which Guardino describes as “the No. 1 diagnosis that GI doctors make, by far.” Yet, they would generally not recommend using probiotics as a long-term solution, or in the hope they will be a panacea, or a way to combat depression or sharpen our memory.

“If we’re eating healthy food, such as good vegetables, good fiber and good fermented food, then we don’t need the additional probiotics,” says Dr. Rana Khan, the department chair of gastroenterology for Dignity’s Mercy Medical

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Group. He doesn’t personally use them, instead opting for regular snacks of yogurt, which, like most fermented foods, are packed with good bacteria.

Barish-Wreden also cautions that too many probiotics could disrupt that natural environment. They can be thought of the digestive version of “mono-cropping.” With over-the-counter probiotics, “you’re taking the same strain over and over again — the same crop — and feeding it to your gut,” she says. “This might not create the conditions to let your gut do what it needs to do, which is creating its own rainforest,” says Barish-Wreden.

GUT CHECK

Instead of leveraging probiotics as a way to enhance that second brain, the more straightforward approach is to simply eat gut-friendly food. The best choices? “What’s good for your heart is good for your gut,” says Guardino.

He tells his patients to avoid anything that comes from a bag, a can or a box and promotes a mostly-plant-based diet.

A variety of food is key. Different fruit has different fibers and antioxidant properties. Khan offers bananas as an example: If someone eats a banana every day as their only source of fruit, sooner or later they will feel more bloated. He recommends mixing in things like apples and mangoes.

The pace of consumption also matters.

“Chew your food really well,” he says.

“Enjoy your meal. Think of it as your last meal. Make it thin and liquidy before you swallow.” This also helps you eat less. He learned this not in med school, but from his grandmother; when he was a kid he would shovel food in his mouth and says his grandmother would throw her shoes at him and say Slow down! (“That’s why I’m a digestive specialist,” he adds, laughing.)

If this strategy sounds decidedly low-tech, or even primitive, well maybe

that makes a certain sort of sense. The power of the gut is not new. It has taken recent technological breakthroughs to help quantify, classify and categorize the billions of gut bacteria, but at least one doctor has been well ahead of the curve. Over 2,000 years ago, Hippocrates, told us that “All disease begins in the gut.”n

Jeff Wilser is the author of Alexander Hamilton’s Guide to Life. His work has appeared in print or online in GQ, New York Magazine, Esquire and Mental Floss, among others. On Twitter @ Jeff Wilser.

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Raymond "Chucky" Hitchcock stands on the future site of the Wilton Rancheria Casino and Resort.

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Raising the Stakes Wilton Rancheria Casino could be an economic boon for both Elk Grove and the only Native American tribe in Sacramento County — if it ever gets built

BY Robin Epley PHOTOGR APHY: Mike Graff

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I

n June 2009, Raymond “Chucky” Hitchcock got to do someThe project would be a boon for the tribe, members say, thing he’d been waiting for his entire life: He finally got to enabling them to pursue additional health care services and tick the box labeled “Native American” next to his name housing. Proponents also say the project would catalyze develon a government form. “Until then, I was just considered opment activity on roughly 900 acres of land surrounding the ‘Other’ or ‘White’ or ‘Caucasian,’” he says. “But I couldn’t project. While the project has support from city officials, some say I was Native American because I wasn’t part of a federally- residents and special interest groups continue their attempts recognized tribe.” to stall it. Regardless, plans for the casino move forward.

Hitchcock, who was born and raised in Carmichael, first got involved with the Wilton Rancheria tribe's fight for federal TIED TO THE LAND recognition. That was restored in 2009, 45 years after being Perhaps one of the most unique things about the casino is its revoked. Then, he started going to tribal council meetings to proposed proximity to the developed area of Elk Grove and the help build a government, until he eventually won a seat on the potential of the surrounding area. Most Indian casinos are not council. Now, Hitchcock is the chairman and CEO of the tribe built within big city limits, says Susan Jensen, executive diand oversees its economic development. rector for the California Nations Indian Gaming Association.

The politics of this small tribe — the only federally-recog- Consider Thunder Valley Resort and Casino when it was first nized one in Sacramento County and consisting of only a few built in 2003 in an unincorporated portion of Placer County. hundred members — are inextricably Not much was around then — though intertwined with the City of Elk Grove’s, nearby Rocklin and Roseville were expethanks in large part to its plans to build riencing a development boom and Cache a $500 million casino and resort on 36 Creek Casino, in Brooks, is considerably acres in the southernmost area of the rural. city, at the junction of Grant Line Road Tribes often build in underdeveloped and Highway 99. areas, Jensen says, usually because their “We’ve struggled for so many years, reservations are historically rural. But and Native American history is a jaded there’s also often too much opposition past, but we’re given a golden opportufrom cities and citizens when a large nity now,” Hitchcock says. The project casino is built near existing residential — Raymond Hitchcock, chairman & is so important to him that he’s relinproperties. quished management of the countertop There is one immediate benefit CEO, Wilton Rancheria tribe business he’s run for more than 20 years though, to both the City of Elk Grove and to his partner and is now wholly focused the Wilton tribe, if they do build a caon the casino and resort because, as he says, “The job we do sino at the abandoned mall site. Elk Grove City Councilman now will hopefully reverberate through generations to come.” Pat Hume says that the surrounding area is already zoned for The proposal for the project includes a 608,756-square-foot commercial use, but area construction stalled when the mall hospitality and entertainment facility, a 302-room hotel with was abandoned in 2008. a pool and spa; more than 47,600-square-feet of convention The 900-plus acres of former farmland is ripe for developcenter space, six restaurants and bars and a 110,260-square- ment, Hume says. Directly to the north of the proposed site is foot gaming floor. The larger 300 acres on which the complex a Kaiser Permanente facility, and next to it are the southernwill be located is known as Lent Ranch. A partially built mall, most of Elk Grove’s residential properties — the nearest homes on a parcel of 99 acres, has been abandoned since the eco- are less than a mile away from Wilton’s land. Directly across nomic crash of 2008. The infrastructure and several frames of Highway 99, to the east of the site, is light industrial property. buildings were left behind and so, the promised commercial The City hopes to attract offices and other commercial development is inexorably tied to the casino. development, once the casino and mall are in place, to draw Building an entertainment complex of this size was nev- crowds and capital. The Wilton Rancheria casino could be er going to be easy. Opponents of the casino project have a the catalyst to expand Elk Grove’s sphere of inf luence almyriad of allegations — from impacts on crime and traffic to most all the way to the Cosumnes River. whispers of a federal-level plot to deceive the citizens of Elk Mike Cattuzzo is a senior vice president with the SacGrove. There’s also the ever-present opposition from shadowy ramento office of commercial real estate brokerage firm, interest groups — other card rooms and local casinos who Cushman Wakefield. The company doesn’t own any parcels don’t want to share their patrons. on Lent Ranch, but Cattuzzo is familiar with the project and

"The job we do now will hopefully reverberate through generations to come."

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MAP COURTESY OF WILTON RANCHERIA

says the casino will be the motivating factor for many developers. “The mall has been dead for many years, and it’s been a hindrance,” he says. “It’s just the perception that it’s not a strong market down there — if it had been, then the mall would have been a success.” But with the casino and new mall going in, there’s “a lot of new enthusiasm for that site,” he says.

Cattuzzo thinks residential real estate around the area will see an impact first. “Once the casino is in, that will drive jobs and a need for housing. As more housing gets developed, you’re going to see more retail.” The casino was a “great coup” for the city, he says, but development in south Elk Grove entirely depends on the casino and mall finally being developed.

Councilman Hume says that the City and the Council recognize that the final say in whether or not the casino gets built is not theirs to make. “It’s a federal decision and a state decision. They don’t require any permission from the City,” he says. “I would say that the Council is cognizant of the potential economic boom and of the jobs creation and the construction.” There’s obviously a lot of benefit to the

surrounding area, he says, regardless of whether or not that area is residential or commercial. “I think generally, for the health of the city, we see more positives than negatives.”

THE OPPOSITION

In 2012, in partnership with their developer, Boyd Gaming of Las Vegas, the tribe began looking at several sites in Galt and Elk Grove. They ultimately decided to buy land on the site of the abandoned mall in south Elk Grove, from the Howard Hughes Corporation, in January 2017 for $36 million.

Cheryl Schmit, director of Stand Up For California, is a vocal opponent of Wilton Rancheria’s casino project, and several other planned Native American casinos in Northern California. She has attended local Council meetings to make official complaints (despite living 40 miles away in Penryn, in Placer County). Schmit says Stand Up is acting as a resource and adviser to the five Elk Grove residents who are currently bringing a lawsuit against the City of Elk Grove and the Howard Hughes Corporation for various alleged breaches, most significantly of a 2014 development agreement.

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“The [original] development agreement says nothing but a shopping mall can be there, so the City is in breach of that agreement because now they’re going to put something else there,” Schmit says. The group contends that the City of Elk Grove and the Wilton Rancheria tribe colluded with one another to deceive the public in choosing the former mall site for their casino and resort.

A petition circulated in late 2016 gathered some 14,000 signatures, nearly forcing the City to hold a special referendum regarding the development agreement. Several hundred signatories ultimately asked to be removed from the petition, once it was discovered that a local card room banker (Knighted Ventures, of Petaluma, who owns Capital Casino and Parkwest Casino Lotus in

Sacramento) was the financial backer.

“People felt they’d been duped,” Hume says. The Wilton Rancheria land is exempt from development agreements now that it’s in a federal trust.

Opposition to the project — mostly Schmit — says that until the land trust agreement is printed in the federal register (meaning the federal process isn’t quite complete), the state cannot finish negotiations with the Wilton tribe for a gaming compact, which they must have in place before construction can start.

“It’s outside money playing in Elk Grove politics and I don’t really take it very seriously,” says Councilman Hume, who is strongly in favor of the casino.

“They’re just trying to protect their bottom line and they’re trying certainly to impact the tribe’s future, but also the future of the City of Elk Grove.”

Jensen says the opposition from other gaming facilities stems from a fear of competition. “They don’t want a tribe to come in and take away their business, and I think you see it — they fight other card rooms, they fight tribal casinos, they fight anyone who’s going to take away any of their share. But the bottom line is tribes have the sovereign right to have gaming on their land,” she says.

WHAT COMES NEXT

If you drive out now on Highway 99 to Grant Line Road, you won’t see much.

There’s a large highway overpass, built more than a decade ago to accommodate a non-existent level of traffic. Surrounding the full 99 acres of the former mall site is a simple chain-link fence, with security guards patrolling the abandoned, half-built frames and roofs.

Until the gaming compact has been secured, the fate of those 36 acres is in limbo. It technically belongs to the tribe, but legally, a crucial step is still missing. Hitchcock declined to comment on whether or not the necessary gaming compact negotiations with the state were taking place or when they might be

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finalized, and also declined to pinpoint a potential year for the opening of the casino and resort.

If or when it is built, the casino stands to be an economic powerhouse for the area — and not just in catalyzing the surrounding development. “The Social and Economic Impact of Native American Casinos,” a 2002 research paper commissioned by the National Bureau of Economic Research, found that the economic climate around the large, Native American-run casino-resorts changed dramatically: The authors found that young adults moving back to reservations caused an 11.5 percent population increase, adult employment increased by 26 percent and there was a 14 percent decline in the number of working poor in and around the reservation. “In counties with or near a casino,” the report states, “the employment-to-population ratio has increased and mortality has declined.”

Also, Native American tribes give back, says Jensen, of CNIGA. In 2014, their 31 member tribes contributed $57.9 million in charitable contributions just in cash donations, and to mostly local nonprofits or charities, according to Jensen. That doesn’t include time spent in volunteerism, she says. Much of this is due to a strong sense of community, Jensen adds, but also because most tribes have dealt with poverty and hunger for generations — they know what it’s like to go without.

“I feel like [this is] what I’m supposed to be doing right now,” Hitchcock says of his work to bring the casino and resort to life. “I can’t really fathom what that really means, it just feels like I’m doing the right thing. I’ve had to struggle with the fact that I’ve probably let my business suffer, to an extent.”

According to the 2016 memo of understanding between Wilton Rancheria and the City of Elk Grove, the tribe will have total control over security, enforcement and infrastructure on their

The House raises GAMING FACILITIES ACROSS THE CAPITAL REGION ARE BOOMING WITH EXPANSIONS AND NEW CONSTRUCTION. HERE’S A LOOK AT FOUR NEW DEVELOPMENTS TIED TO LOCAL CASINO OPERATIONS.

CACHE CREEK ANTES UP The Yocha Dehe Wintun Nation of Brooks, who already own and operate the massive Cache Creek Casino and Resort (as well as several other Brooks-based businesses), plan to expand their hotel in a $161 million deal with Yolo County. The expansion will add more than 450 rooms, more than tripling its current capacity — making it the largest hotel in the region. No additional gaming space is planned, but construction will include a new pool, restaurant, meeting space and ballroom. Leland Kinter, the tribe’s chairman, called it “an incredible opportunity for our entire community,” in a press release. The hotel expansion is expected to be completed by Dec. 2018.

THUNDER VALLEY’S ACE IN THE HOLE Thunder Valley, in Lincoln, recently agreed to sponsor the top floor of a driving range near the successful casino and resort. Topgolf Roseville will rename its VIP room the “Thunder Valley Rooftop Terrace.” Entry comes with sweeping views across the Topgolf driving range and out onto the casino’s grounds.

The sponsorship agreement also includes branded pillows, signs, displays and the Thunder Valley logo etched into the glass windows of the third floor.

ELKS TOWER GOES ALL IN Despite opposition to the project by the rival owners of the Parkwest Casino Lotus and Capitol Casino, Elks Gaming and Entertainment is planning to build a small card room inside the Elks Tower in downtown Sacramento.

The operation would use the space previously occupied by the RailBridge Cellars & Co. restaurant and use the city’s vacant gaming license, up for grabs since the November 2014 closure of Casino Royale. The casino and lounge will open in October, and owner Steve Ayers says they plan to draw customers for the 24/7 venue from surrounding attractions, such as the Golden 1 Center. “We’re looking to do something extremely unique for our entire region, to provide a place unlike any other,” Ayers says.

FIRE MOUNTAIN’S WILD CARD The Estom Yumeka Maidu Tribe of the Enterprise Rancheria (of Yuba County) is constructing a new casino just 30 minutes north of Lincoln’s Thunder Valley, near Wheatland. Right now the tribe only holds a Class II gaming license, but are angling for a Class III, which would put it in the same category as the luxury casino and resorts of Thunder Valley and Cache Creek. Construction broke ground in early April 2017, and is expected to cost $170 million.

—Robin Epley

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BUSINESS INSIGHT FOR CALIFORNIA’S CAPITAL REGION

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own land. They will also pay out close to $200 million over 20 years to Elk Grove and the County of Sacramento for police, fire, roadway maintenance, community benefits and other social services on reservation land and surrounding areas. Of that total sum, $56 million will go to a discretionary fund controlled by the City of Elk Grove, and more than $40 million to a discretionary fund controlled by Sacramento County, Hitchcock says. The casino and resort would employ an estimated 1,750 people and create 1,600 construction jobs. That would make Wilton Rancheria one of the largest employers in the city, behind Apple and the Elk Grove Unified School District.

The casino would be a huge economic catalyst for the tribe, Hitchcock says, because now they can fund what is really important to them: “We can now do an elder center, we can do a medical dental center, we can purchase other properties where we’re able to do our own housing project,” Hitchcock says.

Wilton tribe members who currently use Elk Grove shelters and food banks will have a greater likelihood of upward mobility, and future generations can be donors instead of clients. He also says it will enable the tribe to provide scholarships and educational opportunities, in a community that can count its college graduates on their fingers.

“I feel like I’m having a positive effect and I’m making something,” Hitchcock says, stumbling a bit as he gathers his thoughts,“that I’m a part of something that’s bigger than myself.” n Robin Epley is the associate editor for Comstock’s. She is also the founder of Millennials in Media, a Sacramentobased program for young journalists. On Twitter @robin_epley.

GROWING GOOD HEALTH

Visit the Kaiser Permanente Farm at the California State Fair July 14-30, 2017 Join us at this 3.5-acre working farm that includes fruit and vegetable crops, a greenhouse, insect pavilion, herb garden, and aquaculture exhibit. Learn about healthy eating habits, talk to Master Gardeners, enjoy kids’ activities, get water-saving tips and more.

kp.org/greatersacramento July 2017 | comstocksmag.com

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2017 PART 8

c

Capital Region cares

omstock’s magazine is proud to present the eighth installment of our 22nd annual Capital Region Cares salute to nonprofits.

At Comstock’s, we seek to drive community engagement and the support of the business community by introducing our readers to the many charitable organizations making an impact in communities across Northern California. These charities — from food banks and animal shelters to museums and hospitals — are changing lives 365 days a year.

You’ll read about some of them in this issue of Comstock’s and online at comstocksmag.com as we build content for what will become our flagship Capital Region Cares annual publication.

In September, business leaders, philanthropists, volunteers and nonprofit organizers across the region will receive the final product, Capital Region Cares 2017, filled with moving stories, informative resources and contact information for over 500 local nonprofits that need your help.

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• success story

t a e s best inthe house CALIFORNIA MUSICAL

THEATRE FINDS A NEW WAY TO TELL OLD STORIES

COURTESY PHOTO: CHARR CRAIL

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BY Jennifer Snyder PHOTOGRAPH: Adam Flemming

T

hose who have seen past California Musical Theatre productions of Beauty and the Beast were in for a treat this year: The “tale as old as time” is decidedly new and improved thanks to a recent influx of grant money from the Sacramento Metropolitan Arts Commission.

The one-time facilities and capital improvement grant was funded with City of Sacramento parking revenue from Lots X & Y in downtown. Originally, the parking revenue was set to go directly into the City’s general fund, but instead was set aside to create a grant giving opportunity through SMAC. While several organizations were granted funds through the process, $39,000 was awarded to California Musical Theatre to match funds they

had put toward the purchase and installation of a new state-of-the-art projection system. The system aims to add a distinct visual element to the inthe-round productions for which the theater company is known, and the system will be installed and maintained by local talent through Sacramento’s Stagehands Union.

According to City of Sacramento Convention & Cultural Services Director Jody Ulich, whose department oversees SMAC, the funding was set aside specifically for improvements like those California Musical Theatre was looking to make.

“From looking at the grant application, it was very well written and very clear what it was that they were trying to accomplish,” Ulich says. The theater company also successfully articulated

Projections for the 2015 Music Circus production of Hair were created by Adam Flemming, and show just what the state-of-the-art projection system can add to a show.

how they would match the funds — a requirement of the grant. “They have a track record, so we know when we’re granting funds to an organization like this that it is a good investment.” She adds that when organizations like these receive grant money that helps keep them operating at their highest level, the community benefits through job creation and greater access to well-funded arts programs.

California Musical Theatre Producing Artistic Director Scott Klier says the projection system creates infinite possibilities for how the stories are told in the theater. The equipment allows for visuals (such as video and still animations) to be projected on the theater walls.

According to Klier, the system also al-

lows the production team to have more fluidity in how they stage a show; for example, if a projection isn’t working right on on opening night, it’s much easier to change it out than to create new physical props or set designs.

“When we’ve produced the show before, we were only able to tell [the opening scenes] in a very crude way, [using] poster banners that were held by actors in the aisles of the surrounding theater,” he says. “Now we’ll be able to fully animate it and each section and will get the very same perspective on that pre-show tale that lays the groundwork for what the next two hours has in store.”

Ulich notes the uniqueness of this type of grant, “It was decided by coun-

cil that this would be dedicated to essentially facilities grants or capital improvement grants which is a very rare kind of grant to get,” she says. “It’s capacity building for an organization, in that they now have an opportunity to actually invest into their capital structure. So for us to be able to do that was just priceless in my opinion.” n Jennifer Snyder is a writer, editor and podcast host. Catch her weekly show, Creating Your Own Path, wherever podcasts are available. For more, visit www.jenniferesnyder.com.

July 2017 | comstocksmag.com

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Junior achievement of sacramento BUILDING KNOWLEDGE AND SKILLS FOR FINANCIAL SUCCESS

A

mong the most compelling reasons today’s youth need Junior Achievement (JA) programs are the skills gap that plagues our workforce and the degree to which our society is plunging into debt. JA tackles both problems by providing financial literacy, entrepreneurship, and workplace readiness education and skills to the next generation.

JA programs help students understand the bridge between successful education and successful careers. Studies find that one-third of Americans carry credit card debt month to month and nearly as many have nothing saved for retirement.

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In addition, more than 90% of U.S. senior executives feel American’s lack skills necessary to support our economy, such as critical thinking, communication, collaboration, and creativity. JA’s financial literacy programs educate young people about how to handle money wisely and effectively.

“Our goal is to help local youth be smart about money, and how to find success in the working world,” confirms Susan Nelson, Junior Achievement of Sacramento President. “With the critical support of volunteers from our business community, we offer more than 25 programs, all developed by professional

916.480.2770 / JASAC.ORG

educators, to students in Kindergarten through twelfth grade.”

Serving the greater Sacramento area since 1961, JA offers economic empowerment curriculum and workshops in various formats both during and after school to elementary, middle, and high school students.

Facilitated by more than 750 volunteers, JA served more than 12,500 local students in the 2016-17 school year.

JA’s success lies in its ability to engage the business community. “By joining forces with JA, volunteers and financial contributors are helping to create and prepare tomorrow’s workforce,” notes Nelson. Volunteers

upcoming events

Crazy Bowl: Oct.13th, 19th and 20th, 2017 • Stock Market Challenge: Mar. 22, 2018

help bring JA’s education alive by providing real-life examples and firsthand accounts of success.

Surveys among past participants show that JA garners results. JA alumni have a median household income that’s 20 percent higher than the U.S. median, are 143 percent more likely to have started a business than the general public, and 88 percent of alumni report they’re satisfied with their careers compared to only 49 percent of the general public.

JA students have greater business acumen, are better prepared for the working world, demonstrate entrepreneurial spirit through innovation and initiative, and have a solid grasp of the life skills necessary

for success. They also develop critical thinking, problem-solving, and decision-making skills. Many former JA students have gone on to become business leaders in our community and many are active volunteers in JA classrooms today.

Teachers and volunteers benefit, as well. Studies show that teachers who have worked with JA programs are re-energized and find themselves more able to teach economic fundamentals, often incorporating JA concepts into their own lesson plans. Employees indicate that volunteering with JA sharpened their organizational and presentation skills, improved their attitudes toward their employers, and provided great personal satisfaction.

There is more demand for JA programs than resources to provide them, so JA encourages local business people to volunteer and the community as a whole to help with funding. JA’s “Invest in the Future” program offers various ways of partnering with JA. “We work with all partners to understand their philanthropic goals and to tailor their objectives to meet our needs to serve more children,” says Nelson. “The ultimate partnership between JA and the business community includes both volunteers and program funding. Our mission would not be realized without the community’s generous support.”

PROFILE SPONSORED BY

“This program has opened a door for me that I'll always be grateful for. Not only did this program get me hired at Starbucks, but it taught me life skills that seem to be left out in school." — Alyssa, High School Student

July 2017 | comstocksmag.com

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more images at comstocksmag.com

Watch the video online!

PHOTOS: KEN JAMES, CAPTION: SENA CHRISTIAN

SOAKED Eugene Phillips, owner of Miyazaki Bath House and Gallery in Walnut Grove, fills two tubs with hot water in preparation for a two-hour soak. Guests first wash themselves with soap using a bowl of water and a ladle, while sitting on a stool, before entering the tubs. “The tubs are not for cleaning,” Phillips says. “They’re for soaking.” The ritual of preparation is big in tra-

ditional Japanese culture, and Phillips and his life partner, Montserrat Wassam, take great care in making tea and salt scrubs for guests, and in flower arranging. “We try with the flowers and other elements to reach a harmony with the Japanese spirit,” says Phillips. He bought the historic bathhouse, a 1916 building in an old Japanese community, which used to bustle with a

thriving scene for agricultural field workers. Over the next eight years, he restored the building to its early 20th century glory, including renovating the upstairs lodging, which is now a hotel. The vintage 1940s kimonos displayed in the front lounge and gallery were once packed away as Japanese-Americans entered internment camps, and have never been washed. n July 2017 | comstocksmag.com

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n THE BREAKDOWN

status check:

SACRAMENTO

REGION SEVERAL SIGNS SUGGEST THE AREA IS ON AN ECONOMIC UPTICK

GREATER SACRAMENTO AREA EXPERIENCING JOB GROWTH*

TOTAL JOBS INCREASED BY 10,300 JOBS TO 965,900

Between March 2017–April 2017

Between April 2016–April 2017

Employment in El Dorado, Placer, Sacramento and Yolo counties increased by 2,500 jobs to a total of 965,900 jobs CONSTRUCTION

UP 1,100 JOBS LEISURE & HOSPITALITY

Among the industries with the biggest job gains:

UP 1,100 JOBS

HEALTH SERVICES

FARM EMPLOYMENT

up 6,500 jobs

UP 800 JOBS

LEISURE & HOSPITALITY

Three major industries experienced month-over declines

up 3,500 jobs

TRADE, TRANSPORTATION & UTILITIES

PROFESSIONAL & BUSINESS SERVICES

up 1,600 jobs

DOWN 700 JOBS MANUFACTURING

DOWN 300 JOBS INFORMATION

DOWN 100 JOBS *most recent data available

five industries experienced job loss

UNEMPLOYMENT DOWN

Between April 2016–April 2017

April 2017 Unemployment at 4.4% in greater Sacramento area (down from 5.1% in April 2016) PLACER COUNTY

3.7%

CONSTRUCTION

MANUFACTURING

DOWN 2,300 JOBS

DOWN 1,100 JOBS

EL DORADO COUNTY

4.2%

OTHER SERVICES

SACRAMENTO COUNTY

DOWN 900 JOBS

4.6% YOLO COUNTY

INFORMATION

FARM

5%

DOWN 600 JOBS

DOWN 200 JOBS

CLEAN TECH IS ON A ROLL Core companies in the region: 93 Generating...

(2012–2016)

$1.5 billion

98

$2 billion

$2.2 billion

comstocksmag.com | July 2017

$2.54 billion

$3.2 BILLION IN REVENUE

4,150 3,200

5,300 JOBS

3,400

2,000

SOURCE: STATE OF CALIFORNIA EMPLOYMENT DEVELOPMENT DEPARTMENT LABOR MARKET INFORMATION DIVISION; CLEANSTART INC. 2017 PROGRESS REPORT; CALIFORNIA CREDIT UNION LEAGUE 2016 REPORT

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July 2017 | comstocksmag.com

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