June 23-July 6, 2015

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:32 PM Page 1

June 23-July 6, 2015

www.lbbusinessjournal.com

SPECIAL REPORT – THE HOSPITALITY AND TOURISM INDUSTRY

Long Beach Mayor Robert Garcia speaks to meeting planners during a presentation at Washington, D.C.’s Mango Tree Restaurant. Mayor Garcia joined staff and members of the Long Beach Area Convention & Visitors Bureau (CVB) on their annual sales mission to the nation’s capitol. The week-long marketing effort included sales calls and special events, reaching out to more than 300 professional meeting planners to show why Long Beach is the perfect destination for their meetings. (Photograph provided by the CVB)

Long Beach Hotels Surpass Expectations For Occupancy, Room Rates ■ By SAMANTHA MEHLINGER Senior Writer ong Beach hotels are exceeding expectations for occupancy rates and average room rates so far this year. For the first two months of 2015, hotels in Long Beach experienced an overall increase in occupancy of 3 percent, according to Bruce Baltin, senior vice president of PKF Consulting, a hospitality research firm that is part of CBRE Inc.’s Hotels division. Average daily room rates (ADR), meanwhile, increased by 11 percent in the first two months of the year.

The increase in occupancy rates slightly exceeds PKF’s projec-

L

(Please Continue To Page 25)

‘But For The CVB, We Wouldn’t Have Come To Long Beach’ A Look Inside The Long Beach Area Convention & Visitors Bureau We often hear about “what a great job” this or that local group is doing. The Business Journal wanted a closer look at one such group, the Long Beach Area Convention & Visitors Bureau (CVB). After all, it receives several million dollars a year in tax dollars to “sell Long Beach” and put “bodies in hotel beds.” It’s an important job that impacts a wide array of local businesses – and city coffers. So we asked Brian O’Leary Bennett, a writer with a political background and knowledge of the nation’s capitol with nearly 17 years on Capitol Hill, to tag along on the CVB sales mission to Wash– Publisher George Economides ington, D.C., earlier this month. Here’s what he learned.

■ By BRIAN O’LEARY BENNETT Special to the Long Beach Business Journal r. Lucinda Maine, CEO of the American Association of Colleges of Pharmacy (representing 64,000 students, 6,000 teachers and 5,000 grad students), sat in her Alexandria, Virginia, office reflecting on the last time she was in Long Beach. It was 2003, her first year as the association’s CEO. “Very industrial. Wasn’t colorful. Or what our members liked.

It’s a port city.”

So when Barbara Gustis, the

D

Long Beach Business Journal 2599 E. 28th Street, Suite 212 Signal Hill, CA 90755-2139 562/988-1222 • www.lbbusinessjournal.com

PRSRT STD U.S. POSTAGE

group’s senior director of meetings, told Dr. Maine that she was in Anaheim but wanted to make an unplanned site visit to Long Beach for an upcoming conference, Dr. Maine responded with an incredulous thud, “Huh, Long Beach? I was skeptical. But I trusted Barbara.”

Gustis, in turn, trusted Long Beach Area Convention & Visitors Bureau (CVB) sales rep, Art Scanlon. “He took me to lunch in De-

■ By SAMANTHA MEHLINGER Senior Writer

cember and asked me to remember Long Beach for a site visit,” Gustis said. “When I was in Anaheim this past March, Art pressed me to please go over to Long Beach. If it wasn’t for Art, we would not have visited Long Beach as a potential site.”

Now the national association is holding its Leadership Forum meeting in Long Beach in March 2019. Then in 2020, the full an-

hanks to a combination of collaborative and persistent sales efforts spearheaded by the Long Beach Convention & Visitors Bureau (CVB), coupled with buzz about upgrades at the Long Beach Convention & Entertainment Center, the year ahead is brimming with meetings and conventions in Long Beach.

There are 238 confirmed conventions and meetings at the convention center this year, which the CVB estimated will translate to

(Please Continue To Page 16)

(Please Continue To Page 22)

T

FOCUS ON TECHNOLOGY

Long Beach’s Tech And Innovation Commission To Consider Apps, Open Data And Broadband

PAID Los Angeles, CA PERMIT NO. 447

The Year Ahead In Conventions, Meetings And Trade Shows

■ By SEAN BELK Staff Writer he City of Long Beach now offers nearly a dozen mobile phone applications or apps, five of which were updated this year. The apps, which can be downloaded on to smart phones, allow residents to “report a water waster,” get instant

T

election results or look up real-time flight information from the Long Beach Airport.

The question now being posed by some city officials is should the city continue expanding the number of apps it offers or consolidate?

Apps and other technology-re-

lated topics, such as broadband, connectivity and open data, are just some of the issues being considered by the seven-member Long Beach Technology and Innovation Commission, which was formed by Mayor Robert Garcia as one of his (Please Continue To Page 12)

Tech Company Profile: FreeConferenceCall.com • See Story Page 14

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:57 PM Page 2

2 Long Beach Business Journal

Inside This Issue 4 6 7

Inside City Hall

• How We Will Owe Our Soul To The Company Store. Pt. I

By Former Councilmember Gerrie Schipske

June 23-July 6, 2015

14 16

Helping Long Beach Businesses Grow • Success Story: Groundwork Fitness

Newswatch

12

• City Officials’ Vision For Economic Development • Midtown Business Improvement District Hearing Set • Reminder: Sick Leave Law Goes Into Effect July 1st • City Council Prioritizes Tidelands Projects • Contract Awarded For Shoemaker Bridge Project • Long Beach Election Season Starting Early • Development Task Force Proposed For QM Area

Focus On Technology

• Update On Innovation & Technology Commission • Tech Company Profile: FreeConferenceCall.com

36 38 39

In The News Special Report: Hospitality & Tourism Industry

• A Closer Look At The CVB, continued from Page 1 • Conventions And Meetings, continued from Page 1 • CVB Board Of Directors • Member Hotels: Tourism Business Improvement Area • Long Beach Hotels Surpass Expectations • Unique Venues For Meetings, Special Events • Visitors Boost Business For Long Beach Attractions • Steve Goodling: Maestro Behind The Ballroom Curtain

Perspective Art Matters

Presented By The Arts Council For Long Beach

The Nonprofit Page

Presented By The Long Beach Nonprofit Partnership

Free: Long Beach Business Journal Digital Edition, Monday Morning Coffee, NewsFlash Sign up at: www.lbbusinessjournal.com • Follow us on Twitter: @LBBizJourn

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:32 PM Page 3

2015

4 Long Beach Business Journal

INSIDE CITY HALL

How We Will Owe Our Soul To The Company Store: Part I

■ By GERRIE SCHIPSKE Contributing Writer The current machinations regarding the announced plans for a new civic center, remind me of the old Tennessee Ernie Ford song: “Sixteen tons and what do you get? Another year older and deeper in debt. Saint Peter don’t you call me cause I can’t go, I owe my soul to the company store.”

And the taxpayers of Long Beach will owe their souls if the city goes through with a “private public partnership” that finances for 50 years the totally unnecessary replacement of a city hall and library that were built only 39 years ago, packaged with the giveaway of pricey property where the old Long Beach courthouse sits.

That’s right folks, those facts alone should worry people. Buildings don’t wear out in 39 years and since when does this city have enough money to give away property or to take on a 50-year debt?

Before I discuss the horrors of the financing, let me refresh the collective memory how this project got launched. This all started back in 2005 when the public works department produced a report that discussed the need to retrofit both the city hall and the main library due to seismic and water issues. The report discussed several alternatives but for some reason only the alternatives of demolishing and rebuilding were put forward as viable.

In 2007, then-public works director Christine Anderson suggested that both the library (which had water damage to the garden roof) and the city hall could be repaired, but no one listened.

Is the city hall so seismically unsafe that it cannot be retrofitted and repurposed? Is the current location the best place for a civic center in light of earthquake predictions on a massive scale?

The answers were never given, but keep in mind that: • Not one of the 769 city employees working in city

June 23-July 6, 2015 hall have yet to be relocated to a “safer location” even though this issue has been discussed for 10 years; • If the buildings are so seismically unsafe, how was the city able to purchase earthquake insurance in 2014 but didn’t have earthquake insurance previously; and • Los Angeles, Pasadena, San Francisco, Oakland all had city halls with serious seismic problems which were retrofitted instead of demolished.

After being promised that the city would never pay more than the $12.6 million annually spent to operate the current civic center, the majority of the city council took the bait and moved forward on selecting a developer that would design, build and lease back a new city hall, smaller main library and parking structure. The developer would also be given the former courthouse property to develop retail, hotel and residential units. Total cost to the city: $358 million.

The city then lobbied the state legislature to change the law that limits city governments to a maximum of 35 years for lease-back agreements and extend it to 50 years for this specific project. Okay. So the city will pay $12.6 million x 50 years = $630 million? Really?

Readers should note that only one other government facility (the Long Beach Courthouse) has been financed and built in the same way as being proposed for the Long Beach Civic Center complex. I will cover the advantages and drawbacks in the next column.

Next column: What are Private Public Partnerships and Why the Long Beach Courthouse Cost So Much More.

(Gerrie Schipske is a native of Long Beach, an attorney, registered nurse practitioner and full time instructor at CSULB Department of Health Care Administration.

She was elected to both the Long Beach Community College Board of Trustees and the Long Beach City Council.

She is the author of several books on Long Beach history and her blog, www.longbeachinside.blogspot.com.) ■

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:32 PM Page 5

2015

Fabrizio OWNER, EF1 Motorsports

Career Mentors are a special brand of business owner. They help foster youth by giving them work experience, career advice, and emotional support.

Through Pacific Gateway, Fabrizio connected to a youth who was eager to work and in need of the guidance most teens get from a parent. What started as a summer job grew into something life changing – for both of them.

Join us. pacific-gateway.org/mentor

Made possible by the California Workforce Accelerator Program.

WIA Title I-financially assisted program or activity is an equal opportunity employer/program. Auxiliary aids and services are available upon request to individuals with disabilities.

To request a reasonable accommodation, please call 562.570.4711 or TTY 562.570.4629 at least 72 hours prior to event.

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:32 PM Page 6

6 Long Beach Business Journal

June 23-July 6, 2015

Helping Long Beach Businesses Grow

Groundwork Fitness

Giovanna “Gio” Ferraro, owner of Groundwork Fitness in Downtown Long Beach, recently hired 17-year old Jonathan through the Pacific Gateway Workforce Investment Network’s Youth Jobs Program. Pacific Gateway covers Jonathan’s wages as he gains work experience assisting Ferraro with cleaning, maintenance and some client mentoring. (Photograph by the Business Journal’s Evan Patrick Kelly)

■ By SAMANTHA MEHLINGER Senior Writer As an owner of a small gym in Downtown Long Beach, Groundwork Fitness, Giovanna Ferraro doesn’t always have time to devote to small but necessary operational tasks – she’s too busy running her business and teaching fitness classes. The Pacific Gateway Workforce Investment Network’s Youth Jobs Program turned out to be an ideal solution.

“I do not just own the gym; I work there as well. I teach most of the classes,” Ferraro said, explaining that, because her time is stretched thin, she needed someone to assist her with daily tasks like cleaning gym mirrors. “As a small business owner you are trying to do it all, and those little things really do help,” she said.

After chatting about this issue with a staff member of the Downtown Long Beach Associates (DLBA), the organization that oversees downtown’s business improvement district, the DLBA referred her to Pacific Gateway. Administered by the City of Long Beach, Pacific Gateway provides workforce development services to individuals and businesses in Long Beach, Torrance, Lomita and Signal Hill.

Ferraro sat down with Pacific Gateway staff members to tell them about her employment needs. She needed someone who could perform duties such as cleaning and maintenance, and assist with special events.

Pacific Gateway presented its Youth Jobs Program as an option, and Ferraro was immediately interested. The program is open to youth aged 14 to 24 who live in Pacific Gateway’s service area. The organization places those youths in jobs with local businesses, and pays their wages at the minimum wage rate.

“Everything about it appealed to me,” Ferraro said of the Youth Jobs Program. “I used to be a 9th grade high school teacher . . . in South L.A., and 33 percent of that school [population] was homeless students,” she said. “They were always talking about how they wished they had a job,” she reflected. “I was also someone who worked as a young teen,” she noted.

After reviewing applicants, Pacific Gateway selected Jonathan, a local 17-year-old high school student who is passionate about fitness and seemed like a good fit for Ferraro’s business. Since he started work three weeks ago, “It has been a huge relief,” Ferraro said. “My gym has never been this clean and organized.”

Jonathan’s daily tasks include cleaning, organizing storage areas and equipment, and painting. Ferraro also brings him with her to fitness events and has him give informational and motivational talks. “He lost 60 pounds on his own just by running, and he has done it in nine months. So I have him tell his story to inspire clients,” she said. “He is so driven that the potential he has right now is ridiculous.”

Working with Pacific Gateway and Jonathan “has been a blessing,” Ferraro said.

“The big positive at the end of the day is that you’ve helped impact that youth’s life not only with a paycheck, but . . . showing them that the sky is the limit for them, and this is just the beginning.”

For more information about Pacific Gateway’s business assistance services, call 562/570-3700. ■

Presented monthly by the Long Beach Business Journal and the Pacific Gateway Workforce Investment Network www.pacific-gateway.org

June 2

2015

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:33 PM Page 7

June 23-July 6, 2015

NEWSWATCH

Long Beach Business Journal 7

Long Beach City Officials Lay Out Vision For Economic And Property Development ■ By SEAN BELK Staff Writer As Long Beach’s economic development division has been slowly built back up after it had been eliminated because of budget cuts years ago, city officials are now praising recent successes, including a lower unemployment rate, while proposing ways to create a framework for new investment and development in the city.

During a study session on June 16, Mike Conway, director of the Long Beach Economic and Property Development Department, which was created last year as part of Mayor Robert Garcia’s budget recommendations, gave a presentation on the city’s vision for stimulating economic development in the city.

Conway said the city is continuing the mayor’s recommendation of taking a “holistic” approach to economic development in which all city departments work together to collectively attract and retain businesses.

Economic development “is intended to be inclusive of all city departments and all city employees,” Conway said. He added, “We have a responsibility to ensure that Long Beach is open for business.”

Conway said all city departments and employees should work together as a “unified team” that is focused on spurring economic development, adding that every city employee should be considered a business ombudsman.

As the city is now in the process of selling several former redevelopment properties, specific economic development efforts should take into account “quality of life” issues, Conway said, adding that the goal should also be to provide a “fast, cost-efficient and certain” path for project implementation.

“We have a new vision for this department,” he said. “It’s not solely about dollars and cents. It’s also about quality of life. The focus is not on an individual project but the entire city fabric to make sure that economic development aligns with neighborhood development.”

Conway said 31 former redevelopment parcels have been listed on the market and the city has already received a number of offers. He said all requests for proposals regarding the city’s 161 former redevelopment parcels for future development would be released by the end of the year.

The sale of former redevelopment properties for the development of future projects, Conway added, will help reduce “sales tax leakage” in the city while ensuring that developments are consistent with the city’s long range property development plan and also comply with the state’s requirements to promptly dispose of properties.

Conway said city staff plans to work with the mayor, city council, the economic development and finance committee and the economic development commission to form a strategic plan as well as an economic indicators report.

He added that the city plans to realign the regional Pacific Gateway workforce development program with the city’s economic and property development department to coordinate efforts, support business growth, increase sales tax revenue and create jobs.

Conway also touched on a number of the city’s recent successes, including being able to swap 10 acres of tidelands property at The Pike downtown for parkzoned property at Bluff Park and the Colorado Lagoon, enabling the creation of The Pike Outlets.

He also noted that business ombudsman assistance, which includes providing prospective businesses with support and guidance through city processes, was critical in attracting major tenants to Douglas Park, including Universal Technical Institute, Virgin Galactic and Mercedes Benz.

Conway discussed the city’s revolving loan fund, which uses community development block grant (CDBG) funding and other financing to provide small business

loans. In addition, the city partners with the National Development Council to provide loans of more than $100,000.

He also highlighted new technological advancements, including online programs such as ZoomProspector, a geographic information system for finding the right location to open a business, and OpenCounter, which provides existing and prospective business owners with easy access to city permitting processes.

Conway noted that city’s unemployment rate has dropped from a peak of 14.6 percent in 2010 to 7.7 percent as of March 2015, adding that more than 19,000 new jobs have been created within that time frame.

Mayor Garcia lauded the city’s economic development efforts, adding that there has

been substantial progress made in terms of job growth in Long Beach. “[The unemployment rate] is certainly the lowest it has been probably in almost 10 years,” he said. “I think you’re going to, hopefully, see that unemployment rate continue to drop, but the progress that’s been made to today [from] when the economic recession started has been quite incredible.”

Garcia said the economic development commission is working on a long-term economic development plan that would be brought to the city council for review.

Additionally, at the request of Councilmember Roberto Uranga, Conway said he would present a study on the city’s fee structure at the next economic development and finance committee meeting, which is scheduled for today, June 23. ■

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:33 PM Page 8

8 Long Beach Business Journal

Hearing On Formation Of Midtown Business Improvement District Set For August 11 ■ By SEAN BELK Staff Writer The City of Long Beach has received sufficient petitions from property owners to form the Midtown Business Improvement District (BID), encompassing Cambodia Town, in Central Long Beach, according to city officials. Now, a public hearing to present the results of a final vote on the proposal has been scheduled for August 11.

During its June 16 meeting, the Long Beach City Council voted unanimously to

June 23-July 6, 2015

NEWSWATCH set the hearing date and adopt a resolution of intention to form the Midtown BID to be located along East Anaheim Street between Raymond and Alamitos avenues.

The proposed district corridor, which would be adjacent to the East Anaheim Street Business Improvement District on the east, would include a diverse row of mostly small businesses, including supermarkets, restaurants and cafes.

Property-based BIDs are established after property owners agree to form an assessment district in which they “voluntarily assess themselves for various services beyond those provided by the city, including public safety, beautification, marketing and economic development programs,” according to a city staff report.

Throughout the years, several BIDs have been established in the city, including those in downtown, Belmont Shore, 4th Street and Bixby Knolls. Most recently, the Up-

town PBID in North Long Beach went into effect on January 1, 2014.

Property owners within the proposed Midtown BID boundaries, which would cross City Council Districts 4 and 6, will now receive a ballot to vote yes or no on the proposal. If the yes votes represent at least a simple majority (51 percent) of the total proposed property assessment, then the BID is established and an advisory board is appointed, according to city officials.

Leading up to the final vote, it was required that property owners representing a simple majority in the proposed district sign a petition.

At the council meeting, Mike Conway, the city’s director of economic and property development, said petition responses indicate that owners representing 55 percent of the proposed total district assessment support the proposal, giving permission to move forward.

%!

$ *+ + 2 ( + & ', $ * )# & +* . ,*!& ** * 2 .

- $'(% &+ )'" +* & ). 0 ) $ && & '& $+ ) 2 )!% )0 ) ')+ + ) '+ &+! $ '$,+!'&* + !$ 2 '. ' $ + !$ )* ) )!-!& ,*+'% )* )', !) '')* !& & ! $ )-! * 2 0 * -!& ') +!) % &+ $$ & !$ & ,*+)0 2 . &'$' ! * !& %($ % &+ ' /!%!1 !$ /+) +!'& !$ )'+ +!& &-!)'&% &+ +!$!+! * 2 + ) * $ +)! +0 ) #!& ,) +!$!+0 )-! * ') ) &+ -! +!'& )'*( 2 ')(') + -! +!'& '&+!&, * ' "') ** + & ' ) +') ') ' $ '&'%0

&+ )& +!'& $ ) 2 &+ )-! . !+ '%%!**!'& ) *! &+ ', 2 '. ')+* '& & '* & ) '$$ ') +!& ' &*,) ,+,) )'.+

%

!"

#

),%%'& $ *

%

! +" (&')

# (("&&&

#

! '" (&') #

)*($-,,%'(((

According to a management district plan prepared by Urban Place Consulting Group, Inc., property assessment fees for the Midtown BID are estimated to total $161,501 annually with an additional $5,952 from other revenues.

According to the plan, properties owned by the City of Long Beach, including former redevelopment properties, represent the largest parcels in the district and 40 percent of the total assessment. In other words, the City of Long Beach will be paying $65,700 of the annual assessment.

City-owned properties include the Long Beach Transit facility, MacArthur Park and the Mark Twain Library.

Total assessment revenues would cover costs associated with a safe team program that would provide security services in the form of bicycle and walking patrols, a clean and beautiful program, sidewalk cleaning, graffiti removal, landscape maintenance, marketing and BID management.

During the council meeting, 6th District Councilmember Dee Andrews said the new BID would help attract new business and enhance the area to its “full potential.” He said the BID would help transform the business corridor into something similar to 2nd Street, adding that he has been planning the project with community members for several years.

“We’re talking about a PBID that’s going to make the central area look a lot like Belmont Shore,” Andrews told the council.

“So, you guys, I want you to stay with us and be behind us.”

If established, the Midtown BID would go into effect on January 1, 2016. The city council will annually review and consider approving renewal of the levy, budgets and reports as submitted by the Midtown BID, according to city staff. Upon annual review, the city council may increase the levy up to 4 percent. ■

Reminder: State’s New Sick Leave Law Goes Into Effect July 1 As ‘Clean Up’ Legislation Moves Forward ■ By SEAN BELK Staff Writer On July 1, the rules change for most employment payrolls in California.

Under Assembly Bill (AB) 1522, known as the Healthy Workplace Healthy Family Act of 2014, all private and public employers regardless of size are required to start providing at least three days of paid sick leave to employees who work 30 days or more within a year from beginning of employment.

California lawmakers assert that about 40 percent of the state’s workforce currently doesn’t receive paid sick leave and that the new law will extend paid sick leave benefits to some 6.5 million workers. California is the second state in the country to pass such a law, after Connecticut.

California employers were required to place workplace notices after January 1, advising employees of the new law. The new state law carries fines starting at $100 for failure to post the notice and adminis(Please Continue To Page 9)

June 2

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:33 PM Page 9

2015

June 23-July 6, 2015 trative penalties as high as $4,000 for noncompliance of policy requirements.

As enacted, the law gives employers the option to either provide paid sick leave on an accrual basis by offering a minimum of one hour of sick leave for every 30 hours worked or to provide paid sick leave up front at the beginning of each year.

At the same time, just a few weeks before the new law goes into effect, Assemblywoman Lorena Gonzalez (D-San Diego) introduced urgency “clean up” legislation, AB 304, which is moving through the legislature and which proposes several amendments to the law.

The California Chamber of Commerce (Cal Chamber) has opposed AB 1522, stating that it would be too costly and administratively difficult for most employers to comply with. Cal Chamber currently has no position on AB 304.

As of June 19, AB 304 was awaiting action by the Assembly to move on to the Senate and then to the governor’s desk for approval. Since AB 304 is an urgency bill, it must pass both the Senate and the Assembly by a two-thirds vote.

The new law was covered in detail in the May 26 edition of the Business Journal. ■

City Council Okays New List Of Prioritized Tidelands Projects ■ By SEAN BELK Staff Writer Following a 50 percent drop in the price of oil last year, Long Beach city officials have reprioritized a list of capital improvement projects along the waterfront that are funded by oil revenue.

The Long Beach City Council voted unanimously (7-0) to sign off on a fiveyear capital plan and approve a new prioritized list of tidelands projects during its June 16 meeting.

The new list of projects comes after the price of oil dropped from about $100 to $50 a barrel between July and December 2014, according to city officials.

Tom Modica, Long Beach assistant city manager, said there are more than $230 million worth of tidelands projects needed over the next five years, but, with the projected drop in oil revenue, only $95 million in funds are now available.

He said the city might have to conduct

NEWSWATCH another prioritization of tidelands projects depending on the price of oil.

“Oil is very mercurial,” Modica said. “It may go up. It may go down. So we’re prepared to be flexible, and, as additional monies come in, we can go through another prioritization process.”

In February, after receiving a memo on the need to revise the tidelands budget, the city council approved nine criteria for evaluating tidelands capital projects. The prioritization criteria included: public health and safety, the number of California residents impacted, urgency, poor condition/ high need, quality of life, revenue generation, ability to attract additional funding, lack of alternative funding sources, and capital cost.

The $103-million Belmont Plaza Pool project remains at the top of the list for tidelands funding, with about $43.6 million reserved for the project, taking up nearly half of the total programmed funds. The new pool is being proposed as an aquatics center after the original Belmont Plaza Pool, built in 1968, was demolished last year.

Third District Councilmember Suzie Price, who represents much of the tidelands area, clarified that, even if the city had the required funding for the pool project, it still would be delayed because of various environmental reviews and permit processes.

“It’s not about having the money in hand; it’s a process we have to go through in regards to the pool,” Price said.

Modica said it could take 18 months to two years before construction begins on the new Belmont Pool, as the city has yet to release an environmental impact report or receive coastal development permits from the California Coastal Commission.

While city officials said the pool project is a high priority for the city as a whole, until more funding is available there are various other tidelands projects that could use the funding. Modica said that so far the city has set aside $60.1 million for the Belmont Pool project, but $43 million is still needed.

Vice Mayor Suja Lowenthal, who represents the 2nd Council District, also in the tidelands area, made two amendments to the list that were seconded by Price and approved by the city council.

The first amendment includes allocating $1.3 million to the Aquarium of the Pacific to be the city’s match to the capital campaign for fiscal year 2015. The amount would include: $250,000 from any funds available at the end of the year from closed-out construction projects, $250,000 from critical infrastructure funding to be paid back when

Long Beach Business Journal 9 funds are available, $400,000 from the Marina Vista special events bathroom project that would be paid back for projects in the same area, and $400,000 from the Cherry Beach playground funds that would be paid back when funds are available.

The second amendment ensures that “all funds diverted would have first priority for repayment when new dollars become available,” according to the minutes, which also state that “any future allocation for the Aquarium of the Pacific would be on a case-by case-basis and reviewed annually against funds available and outstanding needs.” ■

Qatar Confirms Purchase Of Four C-17s, One Unsold Aircraft Left ■ By SEAN BELK Staff Writer Qatar Armed Forces (QAF) has signed an agreement with Boeing to purchase four more C-17 Globemaster III Strategic airlifters, according to a statement from Boeing released on June 15 during the Paris Air Show.

The purchase leaves one last unsold C17 as Boeing is expected to shut down its assembly line of the military aircraft in Long Beach after the flyaway of its final C17 sometime this year, said Tiffany Pitts, a (Please Continue To Page 10)

10 Long Beach Business Journal

Boeing Sells Four C-17s To Qatar (Continued From Page 9)

spokesperson for Boeing’s military aircraft division, in an e-mail.

The four aircraft purchased by Qatar are part of eight final C-17s that are currently in various stages of assembly and test, she said. Of the eight aircraft, one has been sold to an unnamed customer, two have been sold to Australia and four have been sold to Qatar, leaving one remaining C-17 to sell, Pitts said.

“We remain in close communication with potential customers and are confident our full production run of C-17s will be sold,” she said.

The four new aircraft doubles Qatar’s fleet of C-17s. The QAF is the first Middle East customer to order C-17s, according to Boeing.

“We are pleased with the C-17s from Boeing and look forward to doubling our fleet to enhance worldwide operations,” said Gen. Ahmed Al-Malki, deputy commander of the Qatar Emiri Air Force and chairman of The Airlift Committee, in a statement.

Boeing representatives add that the aircraft manufacturer will continue to provide C-17 sustainment operations for years to come.

“We’re confident the additional C-17s will significantly increase the QAF’s ability to support the people of Qatar and their allies with transport, airdrop and humanitarian missions,” said Tommy Dunehew, vice president of international customer service and sales for Boeing military aircraft.

“Boeing stands ready to support, sustain and maintain Qatar’s expanded fleet of C17s to keep their planes mission ready.” ■

Gulfstream To Expand Long Beach Facility, Add 50 Employees ■ By SEAN BELK Staff Writer Gulfstream Aerospace Corp., a corporate jet manufacturer, has announced that it plans to expand its operations at the Long Beach Airport and create at least 50 new jobs in the company’s product support organization.

Gulfstream Long Beach, home to an aircraft service center, a completions facility and a sales and design center, is expected to expand its operations with the opening of a new 19,000-square-foot maintenance hangar and nearly 10,000 square feet of accompanying support and office space.

“We expect the facility to be operational in mid to late summer,” said Becky Johnson, vice president and general manager of Gulfstream Long Beach. “The additional jobs and added capacity are fantastic news for this community and our customers.”

Gulfstream Long Beach’s new hangar is able to accommodate up to three Gulfstream large-cabin aircraft. The accompanying ramp space can hold up to 10 aircraft.

The Long Beach facility anchors Gulfstream’s U.S. West Coast operations. The site encompasses nearly 370,000 square feet and has approximately 900 employees.

Last year, Long Beach technicians serviced more than 1,000 aircraft at the facility or on road trips to nearby general aviation airports, including Van Nuys Airport.

Gulfstream, a wholly owned subsidiary of General Dynamics, acquired the Long Beach

Long Beach Election Season Starting Early

site in 1986 and, with a workforce of about 100 people, initially served as a completions center for the Gulfstream IV/IV-SP. The company expanded the facility’s capabilities to include aircraft service and maintenance in 1989. Then, through 1998, Gulfstream Long Beach underwent several renovations, more than tripling its under-roof space, according to a company statement. ■

Long Beach City Council In The News First Annual State Of The 5th District Set For June 27 Fifth District Councilmember Stacy Mungo is inviting residents, business owners and community members to the first annual “State of the Fifth Celebration and Address” this Saturday, June 27, at 6 p.m. at Pan American Park at 5157 E. Centralia St. According to an announcement, Mungo will reflect on the work and progress being achieved in the district and across the city while celebrating the accomplishments of local neighbors in the past year that the councilmember has been in office. Mungo will also provide highlights on what is planned for the future.

The event will feature music by Knyght Ryder and food prepared by Long Beach Firefighters Local 372, concluding with a fireworks show on Clark Avenue.

For more information, call 562/570-5555 or email district5@longbeach.gov.

Councilmember Al Austin Appointed To Metro Council Eighth District Councilmember Al Austin has been appointed to the Gateway munications from Towson University in Maryland. In a statement, Gray said he’s running “to revitalize our neighborhoods and business corridors,” adding, “The council needs new initiatives on technology, music, art and entertainment, infrastructure improvements, and open and responsive government.”

■ By GEORGE ECONOMIDES Publisher Despite there being 10 months before voters in even-numbered city council districts head to the polls, at least two candidates have publicly announced their plans.

As reported two weeks ago, 6th District City Councilman Dee Andrews is seeking a third four-year term in 2016. Due to the city’s term-limit law, Andrews must run as a write-in candidate during the April 12 primary. If he finishes in the top two during the primary, and no candidate receives 50 percent plus one vote, Andrews’ name appears on the ballot in June 2016 runoff.

Last week, business executive and downtown activist Eric Gray announced he is seeking the 2nd District city council seat occupied by Vice Mayor Dr. Suja Lowenthal. She is the senior member of the city council, first elected in a June 2006 special election, then reelected to two four-year terms in 2008 and again in 2012. Like Andrews, Lowenthal is termed out, but is expected to announce soon if she will seek a third term.

In the other even-numbered districts, 8th District Councilman Al Austin is expected to seek a second four-year term, and Daryl Supernaw, who won a special election 60 days ago to represent the 4th District, is also expected to run next year for a four-

June 23-July 6, 2015

NEWSWATCH

Long Beach Board Of Education

Small businessman Eric Gray announced last week that he is running for the 2nd District City Council seat in the April 2016 elections. (Photograph provided by Gray)

year term. The two incumbents have no announced opposition at this time; neither does Andrews, although he is expected to be challenged.

Gray has been rumored to be a candidate for the past several months. A small businessman, he is the founder and owner of ITO Solutions, an information technology services firm. His community involvement includes serving as vice president of the Downtown Residential Council and cofounder of the Historic Pine Avenue Business Association. He also helped co-found the Long Beach Music Council and Culinary Long Beach, is a graduate of Leadership Long Beach, served on the board of Friends of Bixby Park and is active with the Long Beach Lambda and Long Beach Democratic clubs.

Gray holds a bachelor’s degree in com-

In other election news, Jon Meyer, a 12year member of the Long Beach Unified School District (LBUSD) Board of Education, said he is seeking another term next April to represent the 4th District. The district covers all of Southeast Long Beach, to Cherry Avenue on the west and Anaheim Street to the north, and includes Catalina Island.

There are no term limits for school board seats. Meyer was first elected in a special election in 2003, then went on to win three four-year-term elections.

He has a long career locally in education, spanning four decades as a teacher, head football coach and principal of an elementary school and three high schools.

In a statement, Meyer said, “LBUSD has weathered unprecedented budget cuts imposed by the state over the last several years. It appears we can now work to restore some of the things we had lost and begin to move forward again . . . With much of the stormy waters behind us I firmly believe that the next few years will be critical in charting a long-term course for future of LBUSD and its students. I am committed to seeing this important task through.” ■

Cities Services Council, which advises the Los Angeles Metropolitan Transportation Authority (Metro) on the planning and implementation of bus and rail service within the area, according to his office.

The Metro advisory council also reviews proposed service changes and makes policy recommendations to the official Metro Board of Directors.

The Gateway Cities Service Council covers 27 cities, including Long Beach and the unincorporated areas of Southeast Los Angeles County. The council comprises four elected officials and five non-elected officials who are nominated by the Gateway Cities Council of Governments (COG) and appointed by the Metro Board.

Job Fair Tomorrow, June 24, At Convention Center First District Councilmember Lena Gonzalez and the Pacific Gateway Workforce Investment Network are partnering to host a job fair tomorrow, June 24, at 9 a.m. at the Long Beach Convention and Entertainment Center’s Seaside Ballroom, located at 300 E. Ocean Blvd.

According to a statement from Gonzalez, more than 50 businesses, representing hundreds of local current and future employers, are planning to participate. Participating employers include: Arrowhead Products, DIRECTV, Lowes, Molina Healthcare and Tilly’s, as well as dozens of other local businesses.

In addition, job search assistance, employment workshops and other resources will be provided by a network of local nonprofit agencies and by Pacific Gateway.

Participants are encouraged to bring resumes, other employment documents and to come prepared for on-the-spot interviews.

For more information, call the 1st District office at 562/570-9675 or Pacific Gateway at 562/570-3723.

– Sean Belk, Staff Writer

City Council Awards Initial Design Contract For Shoemaker Bridge Replacement Project ■ By SEAN BELK Staff Writer A project to replace Shoemaker Bridge, which currently connects the I710 Freeway to Downtown Long Beach, is one step closer to becoming a reality.

The undertaking involves building a new span alongside the existing 56-year-old bridge over the Los Angeles River and repurposing the old bridge as a park with a bike path.

The Long Beach City Council voted unanimously (9-0) at its June 9 meeting to award a $4.7 million contract to HDR Engineering, Inc., a Long Beach-based firm, for the initial design phase of the project. City officials said the contract covers only about 30 percent of the overall design, and construction isn’t expected to start until 2020.

During his term as councilmember and vice mayor, Mayor Robert Garcia in 2013 proposed the idea to repurpose the free(Please Continue Top Of Next Page)

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:33 PM Page 11

2015

June 23-July 6, 2015 way connector as green and open space similar to High Line Park, which was built on a historic freight rail line in Manhattan, New York.

First District Councilmember Lena Gonzalez said that city staff is expected to seek out additional funding streams to cover the project, which is anticipated to cost a total of $113 million to $200 million. The project’s entire design is expected to cost $15 million to $17.5 million.

“It will greatly benefit and contribute to the sustainability of our downtown and westside,” Gonzalez said. “I couldn’t be more proud of this project and what it could become, hopefully, in the future.”

The Shoemaker Bridge replacement project is being funded partly through Measure R, which covers “early action” projects built independently and in advance of the I-710 Corridor Project, a proposal by the Los Angeles County Metropolitan Transportation Authority (Metro) to improve air quality and alleviate traffic congestion.

According to city staff, Metro has already provided the city with $5.5 million in grant funds that will cover the initial design phase of the bridge replacement project, proposed as a way to improve safety and calm traffic entering downtown.

Assistant City Engineer Derek Wieske told the city council that Metro is offering to provide $590 million over the next 30 years for early action projects related to the I-710 corridor project, currently still under environmental review. A majority of the funding, however, won’t be available until 2019, he said. A total of

NEWSWATCH $10.8 million has already been dedicated for the design of sound walls along the corridor, city staff added.

Long Beach Public Works Director Ara Maloyan said the new bridge is being designed to span 1,300 feet, which is the entire width of the Los Angeles River, since hydraulic calculations show that adding a support structure would impede water flow and force water to flow over the top of a nearby dam.

The existing bridge was constructed in 1959 and named after the Port of Long Beach’s former chief harbor engineer, Robert R. Shoemaker.

The new park proposed on top of the existing bridge will connect to and enable expansions of Cesar Chavez Park and Drake Park with a new nature center proposed at the east end of the bridge and an observation tower and staircase planned at the west end, according to a preliminary sketch. The bridge park will also include gardens, a promenade/boardwalk and viewpoints with shade. ■

Mayor, Vice Mayor Propose Forming Queen Mary Land Development Task Force ■ By SEAN BELK Staff Writer Long Beach Mayor Robert Garcia and Vice Mayor Suja Lowenthal, who repre-

sents the 2nd Council District, have proposed forming a task force to provide feedback and recommendations to the city on developing parcels around the Queen Mary.

The Long Beach City Council at its meeting on June 23 is scheduled to vote on whether to request the city manager to convene a 12-member Queen Mary Land Development Task Force, according to a staff report.

The members of the task force would be appointed by the mayor and would include downtown residents as well as experts in tourism and hospitality, design and architecture and historic preservation.

“The Queen Mary is one of our city’s most important assets, and the develop-

Long Beach Business Journal 11 ment of the surrounding land needs to be done carefully, thoughtfully and with significant community input,” Mayor Garcia said in a statement.

According to Garcia’s office, the city has been meeting with Garrison Investments, the ship’s operator and adjacent land leaseholder, to develop a timeline and process for creating a new master development. The new Queen Mary Land Development task force would kick off the community outreach process while providing feedback.

The 43.38 acres that surround the ship include the Queen Mary Events Park, parking lots and the Sea Walk Village, as well as other vacant land, according to city officials. ■

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:33 PM Page 12

12 Long Beach Business Journal

June 23-July 6, 2015

FOCUS ON TECHNOLOGY

Commission Update (Continued From Page 1)

initiatives to support technological advancements in the city and attract tech firms to Long Beach.

In an e-mail sent to the Business Journal, Garcia said he originally proposed creating the Long Beach Technology and Innovation Commission to ensure the city “remains at the forefront of using technology to make government more accessible, more transparent and more responsive.”

Garcia added that the commissioners’ recommendations would address a broad range of issues, including “improving our use of apps, attracting innovative technology businesses, and making city services more efficient.”

The ultimate goal of such initiatives is to position the city as a “modern place where it’s easy to interact,” said Robb Korinke, who was recently elected chair of the commission and works as a political consultant specializing in open data and government technology.

In a recent phone interview with the Business Journal, he said reports show that creating “innovation districts” or hubs, such as in Boston and San Francisco, transforms cities into “magnets for talent and entrepreneurs.”

Long Beach’s Technology and Innovation Commission, which has a diverse cast of tech experts, has so far had two official meetings that mostly involved organizational matters and getting the commissioners up-to-speed on tech related topics in the city. The meeting scheduled for last month, however, was canceled because there wasn’t a quorum.

City staff has so far presented the commission with updates on the city’s technology and innovation initiatives, such as

“What I’m most excited about is for the commission to be able to have a chance to roll up its sleeves on one or more issues and, potentially, break off into some working groups to really try and aid the city wherever possible and to advance some of their initiatives,” he said.

One initiative in particular he hopes to discuss in coming months is “open data,” a movement that involves opening up government data to the public for individual or entrepreneurial use, Korinke said.

Opening up data to the public in an accessible and innovative way will ultiRobb Korinke, who works as a political consultant specializing in open mately increase efficiency data and government technology, serves as chair of the newly formed for city departments to proLong Beach Technology and Innovation Commission. He is the founder vide services and in some of the political consulting, technology-based firm, Grassroots Lab, ways will help spur new ecowhich has an office in Long Beach and Sacramento. (Photograph by nomic development, he said. the Business Journal’s Evan Patrick Kelly) Korinke, who founded a the city’s newly revamped website, which Long Beach-based consulting firm called was launched earlier this month, and the Grassroots Lab that provides assistance on Bloomberg Innovation Team, which is open data and government technology, just getting started. City officials con- lauded the city’s new website feature firmed that upgrading the city’s website called Open LB, which according to the was approved nearly two years ago at a city’s website provides a “one-stop shop cost of more than $200,000. for data and information about Long Korinke, 36, said he looks forward to Beach,” with access to health stats, demothe commission being able to provide graphic info and city news releases. input on the city’s initiatives. Given the He noted that the feature provides a “ficommissioners’ diverse backgrounds that nancial transparency portal” that offers include coding and education, the com- residents different ways to visualize mission’s guidance will help propel the spending across city government. city toward its goal of supporting and adAnother part of the equation is allowing vancing its technology, he said. people to manipulate data to create their

City of Long Beach Digital Services iOS application in iTUNES Store

Android applications in Google Play

Application

Last Update

Number Of Installs

Last Update

Number Of Installs

Go Long Beach

January 2, 2015

9,020

August 29, 2014

2,716

(allows users to report problems and track service requests for broken streetlights, potholes on the road, graffiti on public building, etc.)

Long Beach PD

February 2014

3,400

February 5, 2014

1,828

(used to increase communication and awareness among residents by providing access to information relating to news, crime prevention, alerts, events, social media feeds, integrated crime maps, etc. Also provides the ability to submit and follow up on crime tips)

Animal Care Services

November 5, 2013

1,043

February 23, 2015

161

(allows searches for adoptable cats and dogs, locating emergency veterinarians, finding local dog parks, search for impounded animals and access to social media feeds. Also, updates about upcoming low-cost clinics and special events)

Vote Long Beach

Februry 3, 2015

845

January 26, 2015

502

(provides information to residents on when and where to vote on city elections. Users can locate a polling place, request and track a vote-by-mail ballot, share election buzz on Facebook and Twitter, and receive instant elections results)

Long Beach Public Library

July 30, 2012

4,354

July 19, 2012

3,438

(allows patrons to search the library catalog, manage their library account, see where library materials are available, place and manage a hold, renew an item, connect with a librarian on social media, e-mail or phone, get reading recommendations, obtain general library information, etc.)

PulsePoint Response

April 1, 2015

n/a

December 4, 2014

n/a

(alerts citizen responders who know CPR to local emergencies near them and to the location of the nearest AED – Automated External Defibrillator)

My Long Beach City Auditor

March 17, 2015

66

March 27, 2015

n/a

(citizens are able to learn about fraud and report it directly through the app itself, read issued audit reports, offer ideas and suggestions, etc)

Go LBG Airport

January 30, 2014

1,060

January 27, 2014

546

(provides real-time flight arrival and departure information, airport parking information, ground transportation options, terminal maps, links to points of interest in the city, etc)

Report A Water Waster

October 8, 2014

429

July 8, 2014

288

(enables residents to share the location of water waste, upload a photo and report a water use violation within the city)

Go Uptown Long Beach

June 6, 2015

n/a

June 6, 2015

n/a

(allows users to connect to city resources such as activities at parks and libraries, and provides information on special deals from local businesses. It also serves as a healthy eating active living – HEAL – resource)

LB Bridge

June 15, 2015

934

November 14, 2014

1,704

(allows users to stay up to date on the Gerald Desmond Bridge replacement project, offering the latest news, information, photos and videos of the project, with live cameras and traffic information to help motorists navigate lane closures and detours) Source: Prepared by the Long Beach Business Journal from information provided by the City of Long Beach Technology & Innovation Department.

Current as of May 2015.

own maps on how to access city services, such as locating parks, said Korinke, a fiveyear Long Beach resident. The City of Los Angeles has already spearheaded its own open data initiative, he said, adding that legislation is currently pending to push open data initiatives on the state level as well.

“It’s a much more contemporary way for the city to provide information to its residents,” Korinke said. “That’s a big part of the larger open data movement. This is one thing that has been discussed informally on the prospective open data initiative here at the City of Long Beach and expanding on what’s been done at the website. This is the type of thing that will be on the docket for the commission.”

Another topic to be discussed by the commission is broadband and the issue of increasing “connectivity” and public Wi-Fi while coming up with ways to provide faster Internet access for all residents, he said.

In addition, city staff recently gave a presentation on Long Beach utilizing Open Counter, a software program first started in the City of Santa Cruz that applies information technology (IT) to advance and simplify the city’s permitting process.

According to city staff, the new system will “help entrepreneurs navigate the city’s business registration process” and will include an integrated, stand-alone “Zoning Check” feature.

City staff notes that the program will also help the city coordinate internal workflows and build better relationships with new business owners while making the city more “business friendly” by providing important city services “24/7.”

Chris Wilding, who served as interim director of the Long Beach Department of Technology & Innovation before the department’s new director, Bryan Sastokas, came on board on June 15, stated in an email that the software will cost the city $40,500 per year for its subscription and hosting fee. Wilding added that there would be a one-time, $30,000 implementation and configuration fee to set up all city ordinances into the system.

“It will be a fantastic addition to our online capabilities for entrepreneurs, [who] are thinking of opening a business in Long Beach [by] streamlining the process,” he said.

Wilding added that the city would initially pilot the program with the assistance of the city’s business improvement districts (BIDs). The city’s financial management department will cover the first year of funding for the program while the city’s development services department would cover subsequent years of subscription fees, “assuming the pilot is successful,” he added.

Korinke said such programs and technological advancements provide opportunities for Long Beach to become more efficient and spark new economic development.

“I think one of the catch phrases is doing things online rather than in line,” Korinke said.

“Having 24/7 access to a city process that you can do from your home or from your office that may not necessitate you coming into city hall and waiting in line . . . is just so critical and it’s something that is talked about a lot [in] the state [and in] other municipalities.”

Wilding said the commission is expected to establish a future strategy planning session at its next meeting, which is scheduled for tomorrow, June 24, at 5 p.m. in the city council chambers. ■

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 8:55 PM Page 13

2015

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:33 PM Page 14

14 Long Beach Business Journal

FOCUS ON TECHNOLOGY

June 23-July 6, 2015

FreeConferenceCall.Com CEO David Erickson: ‘We Are The Most Recognized Retail Brand Of Conferencing In The World . . .’

■ By MICHAEL GOUGIS Contributing Writer David Erickson’s path to business success is one that is well known but rarely traveled – at least, to the extent that he has traveled it. Erickson found a niche in the conference calling industry and worked immensely hard at filling that niche when he started his company in 2001.

“It was a single-man operation. I did everything. I worked the first 918 days without a break,” said Erickson, CEO of FreeConferenceCall.com.

And as another well-known saying goes, effort equals results. The result of that effort is that FreeConferenceCall.com now employs approximately 120 people in its Long Beach headquarters and around the globe, offers voice conference call services in nearly 60 countries, and is the largest privately owned conferencing company in the world.

Presidential candidates use the service; most of the Fortune 500 companies use the service. Even the company’s hold music has impacted the cultural and entertainment environment of the U.S. In his modest office at the company’s building at the Traffic Circle, Erickson outlined his business model, his product philosophies and his view of the industry’s future. Dressed in a casual shortsleeve button-up shirt and flip-flops, Erickson embodied the image of Southern California entrepreneur cool.

“I’ve been in voice, video and data since 1995,” said Erickson, a Downey native who moved to Long Beach about 25 years ago.

“I remember seeing my first voice, video and data machine – it was produced by Intel, a product called Intel ProShare. It worked on a PC, and it was combined with ISDN, a communication process that allowed the transmission of voice, data and video simultaneously over existing telephone lines.

“Even after web-based systems became available, I really stuck with the ISDN – we were getting higher quality video, higher quality sound. Voice, video and sound over the web at that point were pretty nascent – they didn’t penetrate firewalls well, it was a bit of a mess. But I hung in there. I created a software-based switching system.

And a few years later, in 2001, I got this idea for FreeConferenceCall.com.”

One of the things that made FreeConferenceCall.com work was that it actually is – no lie, no strings, no BS – absolutely free.

Due to regulatory and pricing decisions made by federal regulators, there was a tiny amount of money to be made from local telephone exchange companies by offering a conference call. The trick was trying to create enough call volume to make those tiny sums of money add up. Erickson decided to try generating volume by offering a higher-quality service than other free conference call services.

“There were two ways to make money off of a conference call. One was to charge an organizer fee, which is kind of the mainstream, still mainstream today,” Erickson said. “The other was by working with the local exchange carriers – a conference call drives incrementally more traffic into a

David Erickson, CEO of FreeConference.Call.com, is pictured at his Long Beach headquarters. The firm offers voice conference call services in nearly 60 countries. (Photograph by the Business Journal’s Evan Patrick Kelly)

local exchange. Therefore, a local exchange would be willing to pay some of the . . . fees that they receive when they get these incremental minutes (of telephone usage). Today, they’re fractions of a cent.

They’re about maybe a third of a cent. So the idea was, well, if I take away organizer fees, and I make conference calling free, do I get more volume to make up for the money I gave away in organizer fees?”

It worked. But it worked because FreeConferenceCall.com offered a better signal and better service. That was something Erickson learned in that first marathon stint at the helm of his startup.

“For the first couple of years plus, I manned the customer service lines. Because I manned the customer service lines, I heard every complaint. I heard every quality issue.

I was real, real in touch with that,” Erickson said. “I also became really in touch with what it meant when you have poor quality on a conference call. If one person is having a bad quality call, it’s making it a bad call for the others. A lot of times the calls are mission critical. They are companies inviting potential customers, prospects, existing customers to talk over serious stuff. If it doesn’t happen right, it’s detrimental.

“I think that sitting and manning those lines and hearing the issues and fixing the issues – and hearing what those issues meant to them – has always stuck with me.”

Today, the company has – in addition to the Long Beach headquarters – offices for R&D and development and network operations in Chernigov, Ukraine; Nizhny Novgorod, Russia; and a small office in Maryland. The Maryland office is home to some of the company’s technological engineers and the chief technical officer.

Keeping up with technology and customer preferences are the keys to ensuring the company’s future, Erickson said. The company is offering customers the option of paying for upgrades like screen sharing

– the ability to see what is on the call organizer’s computer screen – and is preparing to roll out its video conferencing service.

Again, maintaining quality is key to making the new products work, Erickson said.

“We’re proactively watching the calls.

We’ve learned to study calls. We can see, kind of like in ‘The Matrix,’ if you will, we can see problems,” Erickson said. “We watch the ALOCs – average length of calls – and if it’s dropping, that means people are getting off, or they’re getting dropped, so we manage those percentages to make sure we maintain our quality.”

The company also offers customers the

opportunity to use their own hold music.

It’s a paid service. But it hasn’t really taken off, in part because the default hold music has become one of the most popular pieces of music in history and a cultural icon in its own right. An average of six million people every month hear the song “Sunshine Soul” while on hold at FreeConferenceCall.com.

“We’ve seen it in television commercials, where they’re doing some spoof on conference calls, they’ve got our hold music,” Erickson said. “People have rapped to it.

People have danced – made dance videos to it. There was a big article in Spin magazine about it. It’s everywhere.” ■

Smartphone Application May Help Speed Up The Supply Chain

where trucks stream through for any container in a designated stack,” Cargomatic CEO Jonathan Kessler said in a POLA news release. “We provide the technology and do all the coordination between shippers and carriers so cargo can get where it needs to go.”

Container pickups are documented “by entering or photographing the container number,” according to POLA. Once a delivery is confirmed, payment is triggered.

Cargomatic sets drayage service rates that are booked through the phone application.

“We also bill the shipper, pay the carrier and collapse the process so carriers are paid within eight to 15 days,” Cargomatic Chief Operating Officer Brett Parker said in a statement.

Los Angeles Mayor Eric Garcetti announced the collaboration between Cargomatic and POLA on June 4. “This kind of innovation will help keep our port No. 1, benefiting working Angelenos and our local economy,” he stated. In POLA’s press release, POLA Executive Director Gene Seroka said, “We’ve always supported innovation and we’re proud to be a gateway where new strategies are emerging.”

Cargomatic hopes to move 1,000 containers per week through POLA using its application. ■

■ By SAMANTHA MEHLINGER Senior Writer Since January, a smartphone application that tracks, orchestrates and helps optimize movement of shipping containers has been undergoing testing at the Port of Los Angeles’ (POLA) West Basin Container Terminal. The application, developed by Venice-based firm Cargomatic, has had “encouraging” preliminary results, according to a statement from POLA. Cargomatic was originally launched in 2013 “as an online marketplace” for truckers seeking work and shippers needing their services to connect, according to POLA. A year later, the company began developing its Cargomatic Free Flow program for smartphones, which allows beneficial cargo owners and drayage firms or independent truckers to arrange movement and delivery of a container, and to track it along the way.

“We support trucks picking up a specific container, as well as the free-flow model

June 2

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:33 PM Page 15

2015

June 23-July 6, 2015

IN THE NEWS

Long Beach Business Journal 15

ost

ontainer c CEO ews red do all d carrigo.” ed “by ntainer e a deggered. tes that cation. carrier ers are omatic er said

etti anCargokind of No. 1, ur local ess reGene ted inateway ” 0 consing its

Aquarium Honors Oceanography Experts At Blue Whale Gala The Aquarium of the Pacific awarded Vice Admiral Paul Gaffney II, a retired Navy service member and oceanography professional, and Dr. Margaret Leinen, an oceanographer, its 2015 Ocean Conservation Award. According to the Aquarium, the award recognizes individuals “who contribute significantly to ocean conservation and environmental education.” The awards were presented during the Aquarium’s annual Blue Whale Gala, a fundraising cocktail and dinner affair held June 17. Following his career in the Navy, Gaffney was appointed to the U.S. Commission on Ocean Policy in 2001 by President George W. Bush.

In 2009, he became chair of the Ocean Research Advisory Panel, and in 2014 he became chair of the Ocean Exploration Advisory Board. He currently serves as a fellow at Monmouth University’s Urban Coast Institute. Leinen currently works at the University of California, San Diego as its vice chancellor of marine sciences, director of the Scripps Institution of Oceanography, and dean of the School of Marine Sciences.

She is also a fellow-elect of the Association for the Advancement of Science and the Geological Society of America, and is president of the American Geophysical Union Board of Directors. The Aquarium itself also recently received recognition when its president and CEO, Jerry Schubel, was named Conservator of the Year by the Bolsa Chica Conservancy. Pictured at the Blue Whale Gala, from left, are: Schubel and his wife, Margaret; Leinen; Gaffney and his wife, Linda; and Blue Whale Gala Chair Michelle Molina and her husband, Aquarium Board Chair John Molina. (Photograph by Caught in the Moment Photography)

Randy Paulson Named Chief Marketing Officer For Moffatt & Nichol Moffatt & Nichol, a Long Beach-based engineering firm specializing in maritime projects, recently named 20-year industry veteran Randy Paulson as its chief marketing officer.

In his new role, Paulson will “oversee firm-wide marketing activities to support the firm’s market sectors and explore areas of growth,” according to an announcement from Moffatt & Nichol. “With this position, we’re striving to merge the data and analytic side of business with the creative aspects of marketing,” Moffatt & Nichol President Eric Nichol said in a statement. “We’re thrilled to have Randy on board as both a business and marketing leader.”

Paulson most recently worked at the international architecture firm AECOM overseeing a marketing team focused on both domestic and international markets. Prior to that, he worked for Walker Parking Consultants, a parking garage design firm, where he was a business development director.

He also previously worked as a regional marketing manager for David Evans and Associates, a design firm specializing in transportation and development, energy, and water projects. Paulson holds a degree in business administration from California State University, Fullerton, and is a past president of the Society for Marketing Professional Services – Los Angeles Chapter. (Photograph provided by Moffatt & Nichol)

Two MemorialCare Execs Are Among Best Hospital/Health System CFOs In The U.S. Two chief financial officers (CFOs) serving in the MemorialCare Health System have been recognized among the nation’s best CFOs from 150 hospitals and health systems by Becker’s Hospital Review.

The review, published by Becker’s Healthcare, covers business and legal news re-

Mark Paul Fine Jewelry Opens In California Heights Mark Paul, a jeweler specializing in custom and luxury jewelry, opened Mark Paul Fine Jewelry on June 20 in California Heights at 3401 Orange Ave. Before becoming a jeweler in 2003, Paul worked for the historic Black, Starr & Frost jewelry company, which was founded in 1810. After a two-year apprenticeship, he went on to study at Los Angeles’s Jewelry Arts And Design College, where he later taught 3D jewelry design. Since 2005, Paul’s designs have been featured in several television shows and magazines. According to a statement from the company, Paul began traveling the world in 2007 to search for precious gemstones, and now operates “a few smallscale gold mining operations with his good friend and partner, Kwajo, in Ghana.” Paul uses technology such as lasers, 3D scanning and robots to create unique designs. Mark Paul Fine Jewelry “specializes in custom, bridal, fashion, vintage and men’s jewelry with precious and semi-precious gemstones and metals,” according to its website. For more information, call Mark Paul Fine Jewelry at 562/612-3610. (Photograph by the Business Journal’s Evan Patrick Kelly) lated to the health care industry. Named in the list of the nation’s best hospital and health system CFOs were Karen Testman, registered nurse and CFO of MemorialCare Health System (pictured at left), and John Bishop (pictured below), CFO of MemorialCare’s three Long Beach hospitals and its Seaside Health Plan, which is also based in Long Beach. Testman has served as CFO since 2013. Prior to that, she served as the health system’s senior vice president of financial operations. She has also served as CFO of Orange Coat Memorial and Saddleback Memorial Medical Center.

Bishop has held the position

of CFO of MemorialCare’s Long Beach hospitals since 2009, and was named CFO of Seaside Health Plan in 2014. He also provides oversight for the Memorial Medical Center Foundation, a nonprofit organization, and is treasurer of the California Children’s Hospital Association. Prior to these roles, he also served as CFO of Saddleback Memorial Medical Center.

Joel Cook Promoted To Commander For Long Beach Police Dept.

Long Beach Police Chief Robert Luna has appointed Joel Cook to serve as a new commander assigned to the security services division. Cook, a 26-year veteran of the Long Beach Police Depart-

ment, began his career with the police force in 1989. He was promoted to corporal in 1996, sergeant in 1999 and then lieutenant in 2007. Cook has worked in a variety of roles and assignments including: patrol, field training officer, crime analysis, vice investigations, special weapons and tactics, special enforcement, gang enforcement, homeland security, advanced officer training and special victims investigations. His most recent assignment has been lieutenant of the event planning and disaster preparedness division. Cook has a bachelor’s of science in criminal justice and a master’s of science in emergency management from California State University, Long Beach. He is also a graduate of the Sherman Block Supervisory Institute, Class 147. ■

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:33 PM Page 16

16 Long Beach Business Journal

SPECIAL REPORT – HOSPITALITY & TOURISM

A Look At The CVB (Continued From Page 1)

nual meeting will come to Long Beach using eight hotels, the convention center and the state of the art Pacific Room.

But for the CVB . . .

David Fredenburgh, director of program services for the National Criminal Justice Association in Washington, D.C., had never been to Long Beach. “I never thought of it as a resort or convention destination. I never even considered it. We were planning to put our convention in Ft. Worth.” Then Fredenburgh accepted the CVB’s Regina Richardson’s invitation to come to the Toyota Grand Prix of Long Beach this past April.

“We liked Ft. Worth. . . . they were good.

But Long Beach was exceptional in addressing all of Ft. Worth’s deficiencies. And the welcome we received from the CVB, the hotels, everywhere we went was amazing. The CVB even had a wheelchair waiting for my sister when we arrived at the airport. Who does that? Regina did. They pay attention to detail and to people. We put Long Beach into the 2017 slot and moved Ft. Worth to 2018.”

But for the CVB . . . .

The non-profit Irrigation Association in Fairfax, Virginia, is a trade association with nearly 1,800 members who represent 15,000 employees. It had held seven conventions in San Diego, several in Anaheim but not one of their conventions with its 5,000 exhibitors and attendees had ever come to Long Beach.

“We’re a non-profit. Our conventions are revenue generators. So if a city is not costattractive to participants and their exhibitors, then we won’t go,” the association’s business development director, Scott Hersh, said.

After working closely with Richardson, the Irrigation Association is holding its first-ever convention in Long Beach this November.

But for the CVB . . .

Jason Weinstein, director of national events for the American Association of Retired People (AARP), said that since 2002 the group’s national conventions had been held in Southern California. Once each in Los Angeles and Anaheim, twice in San Diego. “Long Beach was never on AARP’s map. We never considered it.

Were it not for the CVB’s senior national sales director, Paul Romero, it would have never happened,” he said.

But for the CVB . . .

Marilyn Matthews of Meeting Solutions, Inc. and Heather Martin of Helms Briscoe are influential, third-party convention site selection professionals whose companies represent many corporate and association clients. Martin was invited by the CVB to visit Long Beach, and she asked Matthews to join her. Matthews had never heard of Long Beach. Soon, they are each doing a site visit to Long Beach. The first convention availabilities for their clients are as early as 2018. The women shared that they are encouraged by hotel pricing, reasonable overall convention costs and that the hotels, restaurants and convention facilities are within walking distance.

These are not isolated or anecdotal.

Over the course of three days and nights, I shadowed Long Beach CVB President/CEO Steve Goodling and Long Beach Mayor Robert Garcia on the CVB’s annual sales mission to Washington, D.C. I randomly spoke with more than 30 association convention planners. They spoke with me about how the CVB put Long Beach on

Top: Art Scanlon, national sales director, Long Beach Area Convention & Visitors Bureau (CVB), talks with clients, from left: Mary Spruill and Rebecca Lamb, both with The NEED Project, and Marilyn Matthews, For Meeting Solutions, Inc. Bottom left: Paul Romero, also a national sales director for the CVB, talks with clients Terri Long, left, with the North American Millers Association, and Peggy Knizner of the National Agricultural Aviation Association. Above right: Regina Richardson, another national sales director for the CVB, hugs her client, Sheila Varner, of Meeting Management Services. (Photographs provided by the CVB).

their radar, resulting in them already visiting or planning a visit to the city.

So “what” is the CVB? The question is not “what” but “who?” Regina Richardson, Paul Romeo, Art Scanlon, Chris Lappia. People you don’t know and will likely never meet, but who are Long Beach’s ambassadors in our nation’s capital. Every day of every week they’re courting the largest concentration of business and non-profit associations in any city in America. When they succeed, and it is often but never easy, thousands of convention visitors come to Long Beach spending tens of millions of dollars, resulting in economic activity that creates thousands of good paying, permanent jobs locally.

The CVB staff has redefined Long Beach from a nickel-and-dime, post-naval base, aged, industrial port city in recovery, barely worth a second thought into a reinvented, big-time convention destination with world class service, facilities, hotels and recreation wrapped in the casual charm and hospitality of a Southern California beach city.

Trudie Finley, vice president of meetings and special events for the huge and hugely influential National Retail Federation (NRF), put it best: “Long Beach is the buzz in our industry these days as the place to hold conventions.”

The NRF represents the big, powerful retailers in D.C.: companies like Target, Walmart and Macy’s. Where the NRF holds its conventions carries considerable influence among the association fraternity. The NRF is holding its first convention in Long Beach this month with more than 1,400 attendees. The CVB is on the competitive track for another major NRF convention in 2019. Finley is so impressed that she appeared in her first-ever promotional video for any CVB. And it was for Long Beach.

During the meeting with her at NRF headquarters – attended by Mayor Garcia, Goodling and team-CVB – Finley volun-

teered: “You don’t need to sell us. We love you. Long Beach is a perfect fit for us. I love that city. I know their people. I want to rotate us through Long Beach every two or three years. I wish I could put every convention I ever planned in Long Beach.”

An endorsement doesn’t get much better than that.

This just didn’t happen. It took a decade of focused strategic planning, reinvention, collaboration with hospitality partners and cooperation from city officials. Most of all, it took the sustained leadership by the CVB’s president/CEO and board of directors. Goodling’s leadership and strategic plans have been endorsed and assisted by three successive mayors of Long Beach, other elected officials, city managers and their administrations, business and community leaders and the CVB’s partners in the hospitality business.

One absolutely essential element of the Goodling plan is the annual sales mission to Washington, D.C. The planning is exhaustive and begins almost a full year out.

With laser-like precision, his team identifies best new opportunities, checks in with associations with pending conventions, and takes considerable time to thank all of them.

“We go,” Goodling said, “to renew friendships, help further along closing pending opportunities, visit new clients as a total city team and deliver new marketing messages about what’s great about Long Beach.”

The “total city team” always includes the mayor, sometimes other electeds, hospitality partners from hotels and the convention center, along with Long Beach-based CVB staff so the potential client feels the full embrace and support of the city establishment.

What’s at stake in the 2015 annual sales mission to Washington? The potential opportunity to bring home to Long Beach convention business totaling: • 76,000 total room nights;

June 23-July 6, 2015 • $32 million EEI (estimated economic impact); and • $2.2 million in transient occupancy tax that goes directly into city coffers.

According to Goodling, 35.6 percent of total room night use in Long Beach is attributable to the Washington, D.C, market.

This is why the CVB hosted “#DCmeetLB” earlier this month where meticulous planning created a schedule for the delegation that included: • 26 sales calls to individual association headquarter offices, several attended by Mayor Garcia; • 8 customer events (receptions, luncheons, forums); and • attended by 300-plus association customers and guests.

Each event is carefully scripted for maximum impact. Goodling, Long Beach Convention & Entertainment Center General Manager Charlie Beirne and the CVB’s D.C. sales rep each speak briefly, mostly to tee up the two highlights of every presentation: Mayor Garcia and four brief but brilliantly produced videos.

“We are grateful for your business,” the Mayor begins as he speaks with unbridled enthusiasm about Long Beach. “Long Beach is a big urban metropolis with a great community feel because it remains a city of neighborhoods. Downtown is one of those neighborhoods. It’s where I live. It’s safe, with great people, restaurants, shopping and a beautiful coastal view. A new $80 million retail project is underway just steps from the convention center which will have new retail and premier shopping, Nike, H&M, Gap. “We have the lowest level of crime in the city’s history. We have our own airport with its beautiful new terminal. Long Beach is an incredibly safe, walk-able, biking, fun beach city. If the mayor lives and invests in a home in downtown, you know it’s a great place for you and your conventions” – a line that always gets a laugh of approval.

Garcia continues: “We are larger than Miami, Atlanta, Minneapolis and New Orleans. It’s a great city, a big city with a small town community feeling whose people are welcoming and helpful. And the weather is always terrific. We will roll out the red carpet for you. Go Long Beach!” ending his remarks as he always does with his trademark, enthusiastic sign-off.

During the reception and after the formal presentation, the mayor works the room, talking up Long Beach and thanking each person for attending. This kind of personal, hands-on support from a big-city mayor on behalf of a CVB is unusual, and the guests know it. Association presidents are lobbied by mayors about legislation. Rare is the mayor who spends two 10-hour days on convention business with an association vice president or director.

The four videos intro’d by Messrs.

Goodling and Beirne speak entertainingly and substantively about Long Beach. Firstrate production value showcasing the beat, the best of Long Beach: • Andrew’s Long Beach Experience – a millennial-targeted, trendy, upbeat video showing fun sites and sounds of the downtown convention area; • Discover Long Beach – a collage made from 12 award-winning videos about Long Beach by Long Beach residents. Themed to an original song, “Downtown Long Beach” is written and (Please Continue To Page 18)

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:33 PM Page 17

2015

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:33 PM Page 18

18 Long Beach Business Journal

A Look At The CVB (Continued From Page 16)

performed by Charles Whitehead specifically for this video.

• The Pacific Room: Inspired Design, Where Connection Happens – about the $10 million renovation of the Long Beach Arena and creation of the one of its kind new Pacific Room, which has already booked $80 million in convention business.

Unmatched anywhere in the U.S., the Arena can be configured into any shapes, sizes and styles of meeting space the customer desires (and at no charge).

“We have created an environment for networking and collaboration at the Arena and convention center. Our buildings are newly designed to do just that. We are state of the art. We are the trend others now follow,” explains Beirne.

• What Meeting Planners Say About Long Beach – short, personal, specific testimonials by D.C.-based association colleagues about Long Beach’s unique and desirable location for conventions.

The four videos were played at each event and most meetings. Well worth watching.

You’ll find them on the CVB website: http://www.visitlongbeach.com/videos/ Twenty Long Beach hospitality partners traveled back to D.C. as part of the delegation, including the general managers of Long Beach’s best convention-related hotels. Many of them are competitors at home.

All of them partners in D.C. acting as a team promoting the City of Long Beach.

“All the hotels come to pitch ‘the city’ even though they have their individual tables set up at each event. Everyone knows this trip

SPECIAL REPORT – HOSPITALITY & TOURISM is a team effort and what benefits the city benefits each of them,” Goodling explained.

Kelly Fogarty, director of sales for the Queen Mary, explained it this way: “I go on this sales mission to support Steve (Goodling) and the CVB. They’re great partners. I’m also able to meet clients at receptions and make other appointments of my own. The hospitality people and CVB are a tight group because we are literally all close by to one another and support one another because it’s best for the city. Steve has a strong team and I appreciate that he goes out on sales calls with us and supports the Queen Mary.”

Bianca Ware, citywide sales executive for Marriott’s Renaissance, Courtyard and Residence Inn, complimented the CVB for its success at “coordinating the support of city hall, sheriff and local police” any and all city services. Ware appreciates that the CVB shows no favorites and “promotes everyone.”

Kristi Allen of the Hotel Maya was happy to have met with more than 300 planners during the sales mission “including big users of the Maya like Lockheed, Tesoro and Boeing.”

Allen explained that the Maya is not really a convention hotel but rather an upscale boutique hotel used by transit business travelers and for smaller executive board meetings. However, Allen added, encouraging convention business is good for the city and still helps the Maya. When the convention-sized hotels in the city get booked solid, “transit non-convention business travelers will then be directed to the Maya. So we all benefit whether we are boutique or convention hotels.”

The CVB further, very effectively, used

Mayor Garcia by visiting potential clients at their offices with whom the mayor shares a strong public policy connection.

Cynthia Nagendra, director, Center for Capacity Building, and David Dirks, meeting and events planner, both with the National Alliance to End Homelessness, were well acquainted and impressed with Mayor Garcia’s aggressive goal to end veteran homelessness in Long Beach by year-end 2015. They were also familiar with the mayor’s longtime concern over the high rate of LGBT youth homelessness.

A city’s policies are part of the site selection committee’s decision-making process.

So to have a mayor personally pitching Long Beach with a track record on their issues is a powerful tool in CVB’s strategy to win the Alliance’s February 2017 convention.

“Your conference in our city will allow for a great exchange of ideas among all of us, not just your convention attendees,” Mayor Garcia told them. He volunteered a promise to attend their conference, which was unexpected and appreciated.

The last event of Mayor Garcia’s twoday, all-day efforts on behalf of the sales mission was billed by the CVB as the “Mayor’s Educational Forum.” The guests represented educational associations that would be interested in the mayor’s educational initiatives and might choose Long Beach as a convention site. Once again, the partnering of convention marketing with public policy to an issue-specific group of associations proved compelling.

“Most important part of the fabric of America is the educational system,” Mayor Garcia said to the group of 30 representing

June 23-July 6, 2015 more than a dozen educational associations.

He went on to outline the “Long Beach College Promise” whereby he pledged the city’s partnership with LB Unified, LB City College and Cal State LB’s landmark program to provide a tuition-free semester at LBCC and guaranteed admission into CSULB for those LBCC graduates achieving specified goals.

“Long Beach is an educational city and a place for free exchange of ideas. I live and breathe education and I will be happily involved in your conventions if you want.

Thank you and Go Long Beach!”

CVB vice president of sales, Quentin Roberts, observed how virtually unprecedented this kind of support from a mayor is. Roberts, who’d only been on the job for just two weeks, has over 28 years in the hospitality business. “It’s been my experience mayors or CVB presidents don’t go out on client calls let alone pitch their city to like-minded public policy associations the way Mayor Garcia did today. It’s a real boost for our sales mission and for the reputation of Long Beach.”

Many used to see Long Beach as only a “port city.’ But to others, having the second-largest container port in the country in your convention portfolio is a valued tool for the CVB. Victoria Cartwright, manager of education and meetings for the National Association of Foreign-Trade Zones, shared, “Our membership has an affinity with a port city.

Port of Long Beach officials have agreed to come and speak at our 2016 convention and they even offered to give our convention attendees a tour of the port facilities.

We were very pleased by these gestures.”

June 2

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:33 PM Page 19

2015

June 23-July 6, 2015 This highly targeted approach, leveraging all of Long Beach’s varied and unique assets, is what makes the CVB such a dynamic sales force. They do their homework.

Anticipate needs. Customize convention programs. No person or organization is taken for granted and they never quit.

The CVB’s Roberts, to whom the metro D.C. sales force reports, noted, “We’re passive and we’re aggressive. Every day we make emotional deposits with our clients.

We have to be both persistent and consistent, balancing grace and finesse but not being intrusive. Timing, knowing their needs, doing homework and research as to why Long Beach would be a good fit. Giving up is not an option, no matter how long it takes.

“It reminds me of the movie 50 First Dates,” Roberts joked. “We know there’s a relationship there with our customer and after a while they give in.”

The D.C. team is dogged. Relationships can cut both ways, as Paul Romero learned when he first pitched Long Beach in 2011 to the National Association for Home Care & Hospice (NAHCH) for its 2014 annual convention. The CEO came to Long Beach for a site visit. They liked what they saw, but Long Beach didn’t get the business; the CEO had close ties with Phoenix. However, Romero did secure a smaller association “meeting” which exposed the full leadership to Long Beach.

So when it came time for the group to rotate west again for its 2017 annual conference, Romero pitched Scott Baum, head of advertising sales, in December 2014. The CEO and Baum, who had never seen Long Beach, visited in March 2015 for a “fam trip” – familiarization trip. Came out again for Grand Prix weekend in April. On June 2nd, Romero and the CVB received verbal confirmation that Long Beach beat out Salt Lake and Seattle for NAHCH’s annual conference, which will bring 3,000 conventioneers to the city’s convention facilities, hotels, restaurants and shops in October 2017 for five days with an estimated $2.3-$2.5 million economic boost to the city economy.

Four years passed, but Romero never gave up. Always kept NAHCH on his radar.

And it’s not like the contact ends after the convention contract is finalized. Romero attended the first day of the conference and the check-in process for The Sulphur Institute in 2014, something Stephanie Santini, manager of meetings and member services, called a “rarity” for any CVB sales forces.

There is a “Year Out Promo” – where the sales reps will go to an association’s convention a year out from their Long Beach convention to hype Long Beach to the attendees, explain what to expect, encourage attendance. The CVB also will get a booth at an association’s trade show after the contract is signed. At the CVB’s offices there is a “Convention Services” unit that kicks in after the signing to prepare them and the association for the convention, work through all requests, requirements and make sure the CVB makes good on all its pre-signing promises and commitments.

Nothing is left to chance during this sales mission, yet they have with their guests a warm feeling of friendliness and spontaneity. It is incredibly hard work and the competition from nearly 500 other CVBs is fierce. Attention to detail, homework, devotion and knowing their customers enables the CVB to compete for every association-type’s business.

Long Beach Business Journal 19 Cvent, a worldwide event management company, headquartered in Northern Virginia with 1700 employees, 14,000 customers and over 200,000 suppliers, posts its Top 50 Meeting Destinations in the United States each year. For 2014 Long Beach ranks 44th, moving up four from 48th in 2013.

There are nearly 500 CVBs in the Convention and Visitor Bureau Directory placing Long Beach CVB among the Top 10 percent of all convention destinations in America.

The last major hospitality study was done by the CSULB Economics Department in 2011. (Isn’t it time for a new one?) It calculated the economic impact of overnight visitors, convention and non-convention, on the Long Beach economy. Its findings were stunning, even more so considering it was at the height of the Great Recession: • $328 million overall economic impact • 6,729 direct jobs • $170.7 million payroll It is estimated that more than 6.6 million visitors came to Long Beach in 2014.

That’s as if the entire population of the City of Los Angeles came to visit Long Beach once, then two-thirds of them visited twice!

The direct and secondary economic benefits are staggering – a lifeline to jobs, tax revenue and enhanced reputation.

But it’s more than that. The Long Beach Area Convention & Visitors Bureau is branding hospitality, Long Beach hospitality for the long term where even the unsuspecting guests of the sales mission leave feeling they are part of their Long Beach family.

Corny? Maybe. But it’s authentic. Steve Goodling “only hires people who like people, like the business and are excited about hospitality.” Goodling understands the vast personality difference between sales reps who instinctually know “liking people is good business” from reps who think “good business is liking people.” Relationship building is infused in all that is done by his reps because they feel it on the natural.

Fifteen years ago there was no buzz, only fizzle. It’s taken a decade-plus to change the image of Long Beach from a boring, dreary port city recovering from the loss of a naval shipyard to vibrant, cutting-edge, trendy business destination with world-class facilities.

Fifteen years ago, Steve Goodling had a vision to create a customer-focused, responsive CVB that acted with integrity and transparency promoting a city he loves. Part relationship rebuilding, part sales strategy, carefully designed and meticulously implemented. Goodling surrounds himself with strong, confident, capable, down-to-earth staff, gets assists from a cooperative city government and appreciative elected officials, and buy-in from the city's hospitality partners.

Everyone has benefited from the success of that vision.

Observing them today, it feels real because it is real. Goodling couldn’t have pulled it off if he and his team, including those on the annual sales mission, weren’t themselves as authentic, unpretentious, caring and welcoming as the product they are selling – the city and people of Long Beach. But for the uniqueness of Long Beach and the public’s strong support for tourism, the CVB wouldn’t have something special to sell.

The city and its CVB – it’s been a remarkably long, bold, mutually beneficial partnership that has served the people of Long Beach well. ■

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:37 PM Page 20

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:37 PM Page 21

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:37 PM Page 22

22 Long Beach Business Journal

SPECIAL REPORT – HOSPITALITY & TOURISM

June 23-July 6, 2015

Plans are in place to outfit the Terrace Theater at the Long Beach Performing Arts Center (part of the Long Beach Convention & Entertainment Center) with new indoor and outdoor lighting systems. According to Charlie Beirne (right), general manager of the convention center, and Steve Goodling, left, president and CEO of the Long Beach Area Convention & Visitors Bureau, the center is having its “best year” for special events such as concerts and comedy shows. (Photograph by the Business Journal’s Evan Patrick Kelly)

Conventions, Meetings (Continued From Page 1)

194,332 room night stays at Long Beach hotels, generating $2,407,257 in transient occupancy tax (hotel bed tax) for the city.

The estimated citywide economic impact of these groups is $246,490,129, according to the CVB. About 1.7 million people are expected to come to Long Beach through these events, according to Steve Goodling, president and CEO of the Long Beach CVB.

In addition to these confirmed groups, another 49 conventions and meetings are tentatively on the books this year. These events would generate an additional 16,746 room nights at hotels, $82,734 in transient occupancy tax and $8,420,075 in estimated economic impact, the CVB estimated.

“The hotels are enjoying the highest occupancy they have in a long time,” Iris Himert, executive vice president of sales for the CVB, told the Business Journal in

an interview with Goodling, CVB staff and Charlie Beirne, general manager of the convention center.

A new organization coming to Long Beach this year is the National Retail Federation (NRF), which is holding its Loss Prevention Conference and Expo at the Long Beach Convention & Entertainment Center this week, from June 23-25. In a recent promotional video used by the CVB on a sales mission to Washington D.C., Trudy Finley, NRF’s vice president of meetings and special events, gave Long Beach what Goodling called an “out of the park” review.

“I wish I could put every convention I ever planned in Long Beach,” she said.

In addition to conventions and meetings, the convention center is set to have a good year for special events such as concerts and comedy shows. Goodling called 2015 “the best year” so far for special events. “We’re having a tough time finding dates for them,” Beirne said. “It’s a nice problem to have.”

Both Goodling and Beirne attributed the strong year for conventions, trade shows and special events to a “buzz” about Long Beach in the industry that has reached as far away as Washington D.C., where the CVB and Long Beach leaders just completed a sales mission to attract more groups to Long Beach.

Potential customers called upon by the CVB team and Long Beach leaders – including Mayor Robert Garcia and general managers from Long Beach hotels – during the trip to D.C. were impressed by the collaborative sales effort, Goodling noted.

“They loved that a mayor of a city would come . . . [and] that general managers would take time to leave their hotels and actually talk to them as customers,” Goodling said.

“These are things that don’t happen in our industry very often, if ever. So it has differentiated our selling process,” he explained.

That process involves “relationship-driven selling where we develop that rapport, trust, [and] confidence that we will help them make their program a success,” he added.

“Important to add also is [that] sometimes we work on a piece of business for two or three years,” Himert noted.

In addition to the CVB’s sales efforts, Goodling and Beirne pointed to renovations and upgrades that have taken place at the convention center over the past few years as a big driver behind the buzz about Long Beach as a meeting destination. The facility now features networking spaces, an indoor party venue complete with versatile lighting and lounge seating, an outdoor patio with fire pits, a restaurant with a contemporary feel, and more.

The biggest renovation, however, came in the form of the Pacific Room at the Long Beach Arena, which was outfitted with a moveable ceiling truss system with built-in lighting, plus an adjustable curtain system to fit any size event, from a banquet to a rock concert.

“We booked over $80 million worth of business since the opening,” Goodling said of the Pacific Room, which debuted in November 2013. “We have hit a stride, and honestly I think the Pacific Room helped us hit that stride,” he added.

The biggest selling point of the Pacific Room has been that its built-in lighting and rigging systems create significant cost savings for event planners who would have otherwise had to hire outside help for those services, Beirne pointed out. “Labor costs [and] production costs are so low that it is a home run,” he said of the Pacific Room.

“The Pacific Room gives us an ability to create an environment no other city has,” Goodling said. Beirne agreed. “It is unlike any other place in the country, in my opinion,” he said. “And I work for a company that manages over 264 [convention centers].”

The entrance to the convention center on Seaside Way will soon be livened up with various improvements. The entrance to the center under the Terrace Theater will feature a lighted chandelier, and the walls on either side of the entrance will be painted by street artists as part of a citywide event called Pow! Wow! Long Beach, which takes place June 21-28. Additionally, the Terrace Theater is going to be outfitted with new lighting to create visual interest at night, according to Beirne.

Among the 238 conventions and meet-

June 2

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:37 PM Page 23

2015

June 23-July 6, 2015 ings planned for the convention center this year, 32 of those are being held in the Pacific Room. Those events alone stand to generate 113,195 hotel room night stays, about $3.4 million in transient occupancy tax and about $83 million in estimated economic impact within Long Beach, according to the CVB. Another 19 conventions for the Pacific Room are tentatively on the books for this year, which would create an additional $60.4 million in estimated economic impact and $2.7 million in transient occupancy tax.

The CVB’s social media efforts have also generated attention for Long Beach. Last year, the CVB partnered with attractions including the Queen Mary and the Aquarium of the Pacific, JetBlue Airways, and local restaurants and hotels to create a sweepstakes called Beach with Benefits.

Winners received round-trip airfare to Long Beach, hotel accommodations, complimentary dining and attractions tickets, and more. Following the big contest, smaller weekly competitions were held for gift cards, date nights and other prizes.

More than 6,500 people entered the big sweepstakes, and there were 2,000 weekly entrants for the smaller giveaways.

In 2014, the Beach with Benefits campaign generated 56.3 million online impressions via social media and online news, according to the CVB. This year’s big Beach with Benefits sweepstakes just closed with even more entries than last year – 10,562, to be exact. Loren Alexis Simpson, digital communications manager for the CVB, said the Beach with Benefits campaign

Long Beach Business Journal 23 has “tremendously” contributed to creating buzz about Long Beach.

Nicole Zystra, also a digital communications manager for the CVB, has been working to integrate social media into the CVB’s sales efforts. During the recent trip to Washington D.C., all CVB messaging integrated the use of the phrase #DCMeetLB to encourage people to use the phrase on social media, thereby generating online chatter about Long Beach. “It came out to be a potential reach of over 450,000 [people] that could have seen it socially [online],” Zystra said. The phrase was mentioned 839 times on social media, according to the CVB. The CVB’s digital communications staffers are also working with meeting planners to engage their attendees via social media, Zystra noted.

For the next two years, “the outlook is still very good” for conventions, meetings and events in Long Beach, Himert said. So far, convention bookings for 2016 are “slightly behind” 2015, she noted. Long Beach faced the same issue ahead of 2014, but that year ended up being “one of the highest producing room night years in Long Beach,” she pointed out.

The CVB fills any gaps in convention or trade show bookings with local or “inhouse business,” she said. The CVB recently hired on a third sales person dedicated to Southern California, which “has helped us find a lot of short-term corporate business,” Goodling said.

Bookings for conventions and other events are already “pacing way ahead” in 2017, according to Himert. “The future is looking bright,” she said. ■

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:37 PM Page 24

24 Long Beach Business Journal

June 23-July 6, 2015

SPECIAL REPORT – HOSPITALITY & TOURISM

CVB Board Of Directors Bottom row, left to right: William Rouse Long Beach Yellow Cab Steve Goodling Long Beach Area Convention & Visitors Bureau Pam Ryan Renaissance Long Beach Robert Smit Holiday Inn Long Beach Airport Row 2, left to right: Terry Antonelli L’Opera Silvano Merlo Courtyard by Marriott Ken Pilgrim Westin Long Beach Jane Netherton Long Beach Community Foundation Jimmy Loizides George’s Greek Cafe Larry Jackson Long Beach Transit, retired Row 3, left to right Kristi Allen Hotel Maya, a DoubleTree by Hilton William Collier Keesal, Young & Logan Tim Meyer Hyatt Regency & Hyatt at the Pike Doug Drummond Long Beach Board of Harbor Commissioners Top row, left to right: Charlie Beirne Long Beach Convention & Entertainment Center Ed Proenza Ensemble Real Estate Services Mac McCann Residence Inn Long Beach Jim Michaelian Grand Prix Association of Long Beach (Long Beach Business Journal photograph)

Member Hotels Of The Long Beach Tourism Business Improvement Area The Long Beach Tourism Business Improvement District was formed about 10 years ago to provide a steady revenue source to be used to market the city as a destination for meetings, conventions, trade shows and tourists. The following Long Beach hotels and motels are members of the district and contribute a percentage of room revenue to promote the city. The list was provided by the Long Beach Area Convention & Visitors Council, which oversees th e district.

Hyatt Regency Long Beach 200 S. Pine Ave. 562/491-1234 www.longbeach.hyatt.com Tim Meyer, GM

The Westin Long Beach 333 E. Ocean Blvd.

562/436-3000 www.westinlongbeachhotel.com Ken Pilgrim, GM

Hilton Long Beach & Executive Meeting Center 701 W. Ocean Blvd.

562/983-3400 www.hiltonlb.com Greg Keebler, GM

Renaissance Long Beach 111 E. Ocean Blvd.

562/437-5900 www.renaissancelongbeach.com Pam Ryan, GM

Courtyard Long Beach Airport 3841 N. Lakewood Blvd.

562/429-5803 www.courtyardlb.com Chris Dougherty, GM

Hotel Maya, a Doubletree by Hilton 700 Queensway Dr. 562/435-7676 www.hotelmayalongbeach.com Kristi Allen, VP & GM

Long Beach Marriott 4700 Airport Plaza Dr. 562/425-5210 www.marriott.com/lgblb Imran Ahmed, GM

Holiday Inn Long Beach Airport Hotel & Conference Center

Residence Inn by Marriott 4111 E. Willow St. 562/595-0909 www.marriott.com/laxbh Mac McCann, GM

80 Atlantic Ave. 562/435-2471 www.travelodgelongbeach.com Dennis Patel, GM

Inn of Long Beach Residence Inn by Marriott Downtown Long Beach 600 Queensway Dr. 562/495-0700 www.marriott.com/lgbri Ilona Altmann, Interim GM

Hyatt The Pike Long Beach

2640 N. Lakewood Blvd.

562/597-4401 www.hilongbeach.com Robert Smit, VP & GM

285 Bay St. 562/432-1234 www.thepikelongbeach.hyatt.com Tim Meyer, GM

Courtyard by Marriott

Best Western Plus Hotel at the Convention Center

500 E. 1st St. 562/435-8511 www.courtyard.com/lgbcy Silvano Merlot, GM

4105 E. Willow St. 562/989-4601 www.extendedstayamerica.com/lgb Carlos Elias, GM

Travelodge Convention Center

The Queen Mary 1126 Queens Hwy. 562/435-3511 www.queenmary.com John Jenkins, GM

Extended Stay America

517 E. 1st St. 562/285-0281 www.bwconventioncenter.com Hitu Patel, Owner

185 Atlantic Ave. 562/435-3791 www.innoflongbeach.com Paul Grewal, GM

City Center Motel 255 Atlantic Ave. 562/435-2483 Lapa Patel, GM

Rodeway Inn 50 Atlantic Ave. 562/435-8369 www.rodewayinnlongbeachca.com Hitu Patel, Owner

June 2

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:37 PM Page 25

2015

June 23-July 6, 2015

Long Beach Hotels Surpass Expectations (Continued From Page 1)

tions, which were made at the end of last year, Baltin told the Business Journal.

The occupancy rate for Long Beach hotels was about 75 percent in January and February, he noted. The 11 percent room rate increase, too, was beyond PKF’s predictions. “We wouldn’t have projected that high,” he said.

PKF’s original projections were that Long Beach hotels would experience a 4.5 percent increase in ADR by the end of 2015. “But I think that’s very conservative at this point,” Baltin said. “I’d estimate our ADR is going to be up about 7 percent from where it was last year,” he said. In 2014, the average daily rate for a Long Beach hotel room was $133.47.

“Long Beach, [over] the last couple of years, has been gaining ground relative to the overall market,” Baltin said, comparing Long Beach’s hospitality market to the greater L.A. region as a whole.

“You’re getting room rates right now that are similar to or in line with Pasadena, for example, which is really a pretty strong submarket,” he said.

Baltin partially attributed the positive movement of the Long Beach hospitality industry to the efforts of the Long Beach Area Convention & Visitors Bureau in attracting visitors and conventions to the city, and renovations at the Pacific Room at the Long Beach Convention & Entertainment Center. A resident of Long Beach, Baltin also observed that the “revitalization” occurring in Downtown Long Beach with new restaurants, retail and residential developments “helps the hotel industry as well.”

General managers of Long Beach hotels reported that they have been able to raise their average daily room rates this year, with some reporting single-digit growth, and others, double-digit growth.

The Hotel Maya, a DoubleTree by Hilton located near the Queen Mary, is ahead of the average when it comes to ADR growth.

“We are seeing about a 12 percent growth in average room rates here at the Maya,” Kristi Allen, vice president of hotel operations for Ensemble Hotel Partners, told the Business Journal. Allen oversees operations at the Maya.

Up until June, at any given time 25 percent of the Hotel Maya’s rooms were out of service for renovations, which meant the hotel’s lower occupancy rates through that time didn’t reflect the dynamics of the market, Allen explained. However, the increase in ADR suggests “that the market occupancy is high and strong,” she noted. “It’s all good news coming out of the hospitality industry so far this year.”

Tim Meyer, general manager of the Hyatt Regency Long Beach and Hyatt the Pike Long Beach hotels in Downtown Long Beach, shared Allen’s sentiments.

“It’s a good year in the city,” he said, noting that bookings at the Long Beach Convention & Entertainment Center increased this year in comparison to last year. “The market is up overall,” he said. Meyer estimated that occupancy rates of both Hyatt hotels are in the 80 percent range.

Through the first three months of the year, the Hilton Long Beach has been able to increase ADR between 8 to 10 percent,

Long Beach Business Journal 25 according to General Manager Greg Keebler. The occupancy rate for that period was on par with 2014, he added. “We were experiencing a very healthy first quarter with convention business and our own in-house groups, so we were doing very well relative to average [daily room] rate and occupancy,” he said.

Since April 20, the Hilton has had about 130 rooms offline for renovation on a daily basis, so occupancy rates from that point on do not reflect the overall hospitality market, Keebler noted.

The Westin Long Beach, also in downtown, should be able to increase ADR by 7 to 9 percent this year, General Manager Ken Pilgrim said. Occupancy rates at the hotel are “very competitive,” he added.

“The outlook for the summer is very good . . . We are going to be in the mid-80s [percent range] to 90 percent occupancy,” Pilgrim said. “There is a lot of interest in corporate America continuing to do business here, and the weekends are very good with the leisure travel.”

So far this year, the Queen Mary’s occupancy rate is pacing ahead of last year by about 4 to 5 percent, according to General Manager John Jenkins. “Group business seems to be very strong in the city right now,” he said. Business from corporate groups coupled with the leisure travelers who frequent the historic vessel have “fared very well for us,” he added. “We have seen some increase in room rates year over year so far.”

Further north, off of the 405 Freeway, the Holiday Inn Long Beach Airport Hotel & Conference Center has experienced increased occupancy rates over the last couple of years, according to Robert Smit, vice president and general manager. “We have been able to increase average [room] rates slightly over the last year,” he reported. The Holiday Inn began room renovations in the hotel’s tower about a month and a half ago, so some business has been displaced since that time, he said.

“We’re anticipating after our renovation to be able to increase our rates,” Smit said.

The hotel is being renovated in two phases. The first phase of construction is taking place in the main hotel tower, and includes guest rooms, the lobby, meeting spaces and public areas. The existing restaurant at the top of the tower is going to be replaced with executive rooms, and a new Sporting News Grill will be built on a lower level. “It’s an upscale sports bar we believe will be very successful in this particular neighborhood,” he noted. Phase One renovations should be complete by the end of the year.

Phase Two involves tearing down a separate structure north of the tower and replacing it with a new 125-room Staybridge Suites hotel, Smit said. Staybridge is part of a group of hotel chains, including Holiday Inn, operated by InterContinental Hotels Group. It should be about two years until it is up and running, Smit said.

Keebler projected that the top-down renovation of the Hilton Long Beach should generate more business, but noted that it might take some time following completion in August. “We expect to have a fairly strong fourth quarter as the word gets out about our renovations through all kinds of online media channels.”

The Hilton’s renovations include all (Please Continue To Page 26)

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:37 PM Page 26

26 Long Beach Business Journal

SPECIAL REPORT – HOSPITALITY & TOURISM

Numerous Long Beach hotels have re-invested in their properties during the past few years with major renovations to guest rooms, meeting rooms and other items to ensure a positive experience for visitors. One of those properties is the 199-room Hotel Maya – a DoubleTree by Hilton, which rests along the Queensway Bay and adjacent to the Queen Mary. It recently completed a $4 million “refresh.” According to the hotel’s vice president of operations, Kristi Allen, Hotel Maya completely transformed its guest rooms by installing “new, custom hardwood floors for a sleek, modern, coastal feel. Each guest room entry door was replaced with an exquisitely hand-carved wood door. New floor-to-ceiling retractable sliding doors lead to water view and garden view patios and balconies, offering an expansive indoor/outdoor living space evoking a tropical resort.”

Long Beach Hotels Surpass Expectations (Continued From Page 25)

guest rooms, public spaces, meeting rooms and the lobby. “It’s a very Long Beach feel,” he said of the design.

The Westin recently completed renovations on all of its meeting spaces,

which take up 36,000 square feet of the hotel, Pilgrim said. In July, work will begin to revamp the pool and workout area of the hotel.

Now that the Hotel Maya’s room renovations are complete, Allen expects a busy summer. Room renovations included adding hardwood floors, new windows, sliding glass doors and carved

wooden doors for an “upscale boutique feel,” she said.

“This is going to be an extremely strong summer,” Allen said. “Obviously the summer is always strong at the Maya because we are a leisure-based hotel on the water, so it is really our peak season,” she noted. The Special Olympics World Games, taking place in Los An-

June 23-July 6, 2015 geles at the end of July, plus other events in the regional area, should also translate into more business this summer, she explained.

“We are expecting a really busy summer,” the Hyatts’ Meyer said. “There is a good mix of business on the books along with a lot of families coming in for leisure on weekends,” he explained, adding that the annual summer Jehovah’s Witness convention at the Long Beach Convention & Entertainment Center always generates quite a bit of business as well.

One thing Allen is confident about is that more travelers will keep coming to Long Beach. “The economy is coming back, corporate travel is up, and that will lead the leisure travelers to be more confident in the market as well,” she said.

The addition of new restaurants and bars in Downtown Long Beach, plus The Pike Outlets being planned should lead more people who normally just take day trips to Long Beach to stay overnight to see and do more, she added.

While all agreed the outlook for the year was positive, Smit pointed out that the hospitality industry’s success is about more than occupancy and ADR. “Occupancies and average rate are one indicator of success, but we’re constantly struggling to maintain our costs and our profitability,” Smit said. “We are faced, like many other businesses, with a lot of increases in our costs – increases in [costs for] products, energy, utilities, food and beverage, labor costs, insurance [and] health care,” he explained. ■

Long Beach Area Hotels, Attractions And Centers Provide Unique Venues For Meetings, Special Events ■ By SEAN BELK Staff Writer Whether it’s a corporate gathering for a few hundred executives or a grand gala with several thousand attendees, there are

more than enough options in the Long Beach area for hosting a meeting or a special event.

With a wide selection of hotels, attractions and event centers, there is no shortage of unique accommodations for nearly

A classroom-style set up at the Queen Mary Salon (Queen Mary photography)

any occasion. Local venues present a variety of choices, from outdoor, intimate dining on the waterfront, to settings with the latest audio and visual equipment to give a banquet a boost.

Long Beach is home to a number of attractions to make any special event or meeting more, well, special.

For instance, The Aquarium of the Pacific, overlooking Rainbow Harbor, provides a fun and unique underwater-like setting with marine life from the Pacific Ocean supplying a built-in conversation piece.

“Located along the waterfront and within walking distance of many hotels, the Aquarium is in an ideal area for special events,” said Erica Noriega, the Aquarium’s special events manager.

For social or corporate events, picnics and fun nights out, the Aquarium’s sense of wonder is sure to delight attendees, she said Events may be arranged for groups of any size, ranging from a lunch meeting of 10 people to a reception dinner for 2,000 people, she said, adding that people may also rent out the entire Aquarium if desired.

The Aquarium offers accommodations for events ranging from formal dinners under a hanging sculpture of a blue whale in the Great Hall with a cocktail reception in the Shark Lagoon, to casual banquets on the Aquarium’s Rooftop Veranda or small dinners in the upstairs galleries and watershed classroom, and simple picnics near the front plaza.

The Aquarium’s commitment to the environment and its “finesse to exceed expectations” makes each event special, Noriega said. The Aquarium’s caterer, SAVOR Long Beach, offers a special attention to culinary presentation while utilizing sustainable practices and fresh food from local growers, she said.

“Our philosophy is ‘good food, good company and great results,’” Noriega said.

“Every catered affair here is a one-of-akind experience that furnishes more than food and fun. It creates the kind of memories that will endure long after your last guest departs.”

Various entertainment centers and performing arts venues in the local area also provide a wide range of options for entertaining events and classy occasions.

One of the largest venues in Southern California for conventions and special events is the Long Beach Convention & Entertainment Center (LBCEC), a huge complex of venues that includes the Long Beach Arena, three ballrooms, three exhibit halls, 34 meeting rooms and two theaters.

The Long Beach Arena’s 45,000square-foot Pacific Room offers space for up to 13,000 people, with banquet, theater and reception seating. The Terrace Theater provides seating for up to 3,000 people, with 600 seats for banquets and 1,121 seats for receptions. The Center Theater, home to International City Theatre, offers seating for up to 800 people (Please Continue To Page 28)

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:37 PM Page 27

2015

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:37 PM Page 28

28 Long Beach Business Journal

SPECIAL REPORT – HOSPITALITY & TOURISM

The Grand Long Beach has a model display room where clients can explore various options and mix and match cololrs for their special event or meeting. The Grand is located on Willow Street near the 405 freeway and the Long Beach Airport.(Photograph by the Business Journal’s Evan Patrick Kelly)

Meeting, Event Venues (Continued From Page 26)

The three exhibit halls total 224,000 square feet of exhibition space, with the Grand Ballroom offering 20,456 square feet of space with 1,200 banquet seats and 2,272 reception seats. The Promenade Ballroom has 820 banquet seats and 1,466 reception seats while the Seaside Ballroom offers 400 banquet seats and 700 reception seats.

In addition, an indoor atrium provides seating for more than 5,500 people while the outdoor plaza can seat more than 2,500 people.

Other accommodations offered at the Long Beach Convention & Entertainment Center include outdoor rooftop parking, which has capacity for 9,700 guests; the Pacific Gallery Patio, with seating for up to 2,200 people; and the recently renovated Bogart & Co. catering space, which offers seating for more than 600 people and a casual atmosphere for dining at the Long Beach Arena.

“The Long Beach Convention & Entertainment Center has versatile meeting venues that can be customized to suit any meeting planner’s imagination,” said Bob

Maguglin, public relations director for the Long Beach Area Convention & Visitors Bureau. “Modern, flexible exhibit halls, meeting rooms, ballrooms, theaters, a sports arena and open-air special event spaces provide the perfect venue for a perfect event.”

In close proximity to major freeways and centrally located between Long Beach Airport and LAX, the Carson Center at 801 Carson St. in the City of Carson has over 27,000 square feet of usable space, according to the facility’s manager Michael Page.

The center’s nearly 12,000-square-foot ballroom can accommodate a general session of 1,200 theater-style seats, he said, adding that it can also be divided into three large breakout rooms, which can accommodate 250 to 300 theater seats. The center also offers 10 to 16 breakout rooms that can accommodate 30 to 150 people for theater-style seating.

The Carson Center, located adjacent to a 225-room Doubletree hotel, has a maximum capacity of 800 people, with a dance floor for a sit-down dinner, Page said, adding that the center can also accommodate 85 exhibit booths, eight feet wide and 10 feet tall.

After undergoing a $1 million renovation,

the Carson Center’s main ballroom is now equipped with state-of-the-art audio and visual technology along with Wi-Fi, he said.

“The Carson Center is freeway close,” Page said. “We have easy access to the 405, 91, 110 and 710 freeways. We also offer free parking and an excellent on-site contracted caterer, Choura Venue Services.”

The Grand Long Beach, meanwhile, located at 4101 Willow St., advertises itself as the place where “new-world luxury” meets “old-world hospitality.” The venue has been hosting weddings, events and meetings since 1960.

The 40,000-square-foot facility has 20,000 square feet of indoor and outdoor meeting and event space, with a maximum capacity of 450 people for a sit-down dinner or special event, according to Dan D’Sa, director of food and beverage for The Grand.

The Grand has seven flexible indoor spaces, two room-adjacent patios and two outdoor courtyards. Accommodations include complimentary parking, wireless Internet access and proximity to nearby freeways, airports and lodging, according to the venue’s website.

“The Grand has the feel and service level of an upscale venue with the ability to work within all types of budgets,” D’Sa said.

“We’re a family-owned company and you feel that when working with our entire staff.

It’s about the customer experience for us.”

Hotels, which are plentiful in the Long Beach area, also provide unique accommodations for meetings and special events.

The Hyatt Regency Long Beach on Pine Avenue in downtown, for instance, offers more than 35,000 square feet of flexible meeting and event space, according to Mary Carley, the hotel’s director of events.

For a single sit-down dinner or a special event, the hotel has a maximum capacity of up to 1,000 people, she said.

The Hyatt Regency’s Beacon Ballroom offers panoramic views of the waterfront while the Regency Ballroom at 10,000 square feet includes soaring 16-foot ceil-

June 23-July 6, 2015 ings. The Regency Boardroom offers an ocean view from 16 stories high while the hotel’s newly renovated lower level event spaces offer a rotunda with 4-story windows overlooking Rainbow Lagoon.

Outside, the hotel’s poolside deck offers an intimate atmosphere for outdoor events with a fire pit, while the lagoon, surrounded by palm trees, is used for ceremonies and receptions, Carley said.

“Hyatt Regency Long Beach makes it easy to hold your meeting in style,” she said. “From boardrooms to exhibit halls to breakout rooms, [there is] over 35,000 square feet of flexible meeting space, much of it filled with natural light and offering stunning views of the harbor, Queen Mary and Catalina Island.”

Adjacent to Long Beach Convention & Entertainment Center, the Hyatt Regency hotel is “fully furnished for any function,” from trade shows and conferences to weddings and galas, Carley said.

“You can opt for an intimate reception with ocean views or set a majestic scene with our lagoon and Japanese bridges,” she said, adding that the Hyatt’s staff is “here to help” with any assistance in staging an event.

The hotel also has ample “modern amenities,” including wired and wireless Internet, individual climate controls and the latest in audio and visual technology, including video conferencing, Carley said.

Not far away, Hotel Maya, a DoubleTree Hotel, offers a boutique, resort-style getaway, overlooking Queensway Bay and the Downtown Long Beach skyline with Latin American-inspired design and tropical gardens with more than 500 palm trees.

Kristi Allen, vice president of hotel operations, called the Hotel Maya a “hidden gem” and “not your typical big box property.”

After a recent $4 million renovation, the 199-room Hotel Maya now offers two new event venues, the 64,000-square-foot Lagunita pavilion and the 10,000-square-foot Vista del Mar, a pre-function outdoor area,

The historic Queen Mary provides one of the most unique settings anywhere for a meeting or special event. The ship offers a variety of options for meetings of all sizes and special events, including having a wedding on its deck as pictured here. The ship has 346 original staterooms and suites, a wedding chapel, numerous onboard shops, a wide selection of dining options and much more. (Queen Mary photograph)

June 2

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:38 PM Page 29

2015

June 23-July 6, 2015 she said. Both event spaces are located at the water’s edge. The improvements also include updated and modernized guest rooms.

In addition, there are 15 distinct meeting and event spaces with more than 30,000 square feet of flexible indoor/outdoor areas, including the Jardin De Palmeras, which has a gazebo and a tropical waterfall; the Esplanade outdoor area, topped with a 14-foot-tall, 42-foot-wide umbrella; and the Playa at the Maya, which offers a 6,500-square-foot exclusive beach.

“Guests are encouraged to stretch their legs and get their creative juices flowing from the inspirational elements found throughout the property,” Allen said. “Whether it’s a dream wedding, corporate social event or annual conference, retreat or incentive trip, attendees will walk away with a memorable experience to last them a lifetime.”

Allen said that the new event venues now give the Hotel Maya capacity for standing receptions of up to 2,000 people along the waterfront. The new Lagunita space seats up to 450 people in rounds and up to 350 people in classroom style seating while the Vista Del Bar seats up to 350 people in rounds, she said.

“From the exclusive beach, private dock, waterfront pool with floating cabanas, indoor/outdoor Fuego restaurant to simply taking in the spectacular Long Beach skyline, there’s something for everyone,” Allen said.

Another hotel in Long Beach with accommodations for meetings and special events is the towering Holiday Inn near the Long Beach Airport on Lakewood Boulevard.

The hotel offers a 5,000-square-foot ballroom that accommodates 300 guests

Long Beach Business Journal 29 for theater seating or 400 guests for dinner, according to Bess Cruz, director of sales for the hotel. The ballroom can also be divided into three separate rooms for small banquets or meetings.

As for outdoor options, the hotel offers a large swimming pool facility and an open sitting area for an outside reception area that can accommodate up to 100 guests.

The hotel also has a state-of-the-art dining facility called Panorama Restaurant, known for its panoramic view, which can accommodate 75 people. The hotel also has a lounge bar currently situated at the hotel’s penthouse, Cruz said.

“The location of our property is the perfect hub to exciting locations such as Downtown Long Beach, the Queen Mary, the Long Beach Airport, golf courses and fabulous restaurants in the South Bay,” she said. “We have been the choice of many because of our large meeting rooms, flexible room configuration, an abundance of parking spaces, access from the 405 Freeway and something we are most proud of – our service. We bend over backwards for our guests, indicative of their continued use of our facilities.”

Cruz added that the hotel is planning to undergo a major renovation to significantly upgrade hotel rooms, the ballroom, and banquet facilities. In 2017, upon completion of the hotel’s Staybridge Suites on the property, the hotel will add six additional meeting/boardrooms on the first floor while upgrading all meeting rooms to become “upscale, modern and very contemporary,” she said. “We are certain that, with our expanded facilities after renovation, our property will be second to none.” ■

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:45 PM Page 30

June 2

" '# ) " # ) " $ # ) ( "$ # ) % # & $# ) $ # ) !% $#

the

CARSON Center

* 7 0 *,01 &++,3 1&3" +.2"1 +! ,+#"/"+ " "+1"/ 7 0.2 /" #""1 ,# #)"5& )" *""1&+$ 0- " &+ )2!&+$ 0.2 /" #,,1 ))/,,* 7 "+1/ ))6 ), 1"! *&+21"0 #/,* +! ,+$ " % &/-,/10 " 06 !/&3" #/,* / +$" ,2+16 +! 1%" "010&!"

7 #)"5& )" 0- "0 $2"010

,**,! 1&+$

7 1 1" ,# 1%" /1 2!&, 3&02 ) ".2&-*"+1 01 $" +! 1%" 1/& ) )&$%1&+$ 7 /,#"00&,+ ) "3"+1 ,,/!&+ 1,/ ,+ 0&1" 7 + ,*- / )" #,,! 0"/3& " 4&1% "1%+& *"+20 3 &) )" 7 /"" - /(&+$ 7 !' "+1 1, 1%"

/,,* ,2 )"1/"" %,1")

110

E University Dr

405

Links At Victoria

Avalon Blvd

Harbor Fwy Figueroa St

W 190th St Normandie Ave

E Victoria St

Cal State Univ-Dominguez Hills

S Wilmington Ave

91

E Del Amo Blvd

E Carson St E 223rd St

the

CARSON Center 01 /0,+ 1/""1 7 /0,+ 7 444 /0,+ "+1"/ ,*

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:45 PM Page 31

June 23-July 6, 2015

SPECIAL REPORT – HOSPITALITY & TOURISM

Shoreline Village, a popular tourist destination in Long Beach, offers waterfront shopping, dining and a variety of activities such as an indoor arcade, Segway tours along the shore, and even boating. According to Debra Fixen, property manager, the businesses at the village have all been doing well so far this year.

(Photograph by the Business Journal’s Evan Patrick Kelly)

Visitors Boost Business For Long Beach Attractions ■ By SAMANTHA MEHLINGER Senior Writer Executives overseeing Long Beach attractions and tourism-based businesses are reporting increased visitor counts and revenues this year, and project that these trends will continue into the summer.

“We are doing very well,” John Jenkins,

general manager of the Queen Mary, told the Business Journal. “The number of events and the number of guests that are coming onboard continues to grow,” he said, estimating that visitor counts have increased 5 to 6 percent so far this year in comparison to 2014.

In addition to some of the Queen Mary’s annual events, such as the All-American 4th of July, the spooky Dark Harbor in October and the holiday-themed CHILL at the end of the year, the Queen Mary is hosting new events this year. Recently, the new ShipKicker event, a country music festival, pulled in nearly 6,000 guests, Jenkins said.

About 41 weekends out of the year are booked with special events, he noted.

The historic vessel is losing one of its staple events, the Ink-N-Iron festival, (Please Continue To Page 32)

Long Beach Business Journal 31

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:45 PM Page 32

32 Long Beach Business Journal

SPECIAL REPORT – HOSPITALITY & TOURISM

June 23-July 6, 2015

The historic Queen Mary, built in the 1930s, is a hotel and attraction with year-round special events. The vessel, permanently anchored in the Long Beach harbor, has experienced an increase in overnight hotel visitors this year, according to General Manager John Jenkins. During the summer, Catalina Express, pictured at right, departs from a dock by the Queen Mary for trips to Catalina Island. (Photograph by the Business Journal’s Evan Patrick Kelly)

Attractions (Continued From Page 31)

which just wrapped up its final weekend in Long Beach. Although the festival, which features tattoo artists, musical acts, hot rods, burlesque and more, is relocating to Tennessee, Jenkins said the event organizers are considering starting up another event at the Queen Mary. “They will be looking at doing something a little bit different . . . more of an art show,” he said.

A new 4-D movie theater is currently under construction at the Queen Mary, which will be used in conjunction with CHILL and Dark Harbor in a way similar to a theme ride, Jenkins said.

This summer, new sights at the Queen Mary will include additional dresses worn

by Princess Diana of Wales at the ship’s Diana: Legacy of a Princess Exhibit, plus

a 27-foot long replica of the Queen Mary made out of Legos, Jenkins said.

The redesigned and all-new retail shops at the Queen Mary, which opened in April, have gone over very well with ship visitors, according to Jenkins. “We reduced the number of shops, but actually increased revenue through those shops,” he said. Stores include a wine tasting room, boutiques and a Wyndham Vacations Visitor’s Center.

In early June, a wedding salon opened for couples getting married aboard the Queen Mary to plan their big day. The salon is staffed with a wedding planner who can assist with selecting invitations, party favors, flowers and other accoutrements.

Recently, a nonprofit organization called the Queen Mary Heritage Foundation was formed to steer the creation of a new concept on the ship – a maritime and science

museum, Jenkins said. Plans for that are still preliminary.

The Aquarium of the Pacific is also doing well so far this year, and the outlook remains positive. “All of our metrics suggest that 2015 will be a very strong year for the Aquarium,” Jerry Schubel, president and CEO of the Aquarium, told the Business Journal.

“We are 4 percent ahead of last year in terms of visitors. I expect we will end this year somewhere a little bit above 1.5 million visitors,” Schubel said. “Our projected revenues are 3 percent ahead of last year,” he said, adding that retail revenues are currently 8 percent ahead of 2014’s sales. The strong start to the year and positive outlook are largely due to “the diversity and quality of the programs that we have become known for,” he said.

On May 22, the Aquarium debuted Jellies, a new exhibit showcasing several species of sea jellies throughout the facility. “The response so far has been very good,” Schubel said. “We not only have live animals, but we have a 12-minute film about jellies, [and] . . . another very short film in the Great Hall,” he said. A lecture series accompanies the exhibit, with scientists and Aquarium staff scheduled to speak about jellies on July 30, August 18 and September 10.

Also new at the Aquarium this summer is a program about sea level rise. An exhibit in the Great Hall showcases photographs (on loan from the Annenberg Foundation) of locations around the world impacted by sea level rise. “We complement the photography with the Science on a Sphere exhibit about sea level rise,” Schubel said. Science on a Sphere, designed by the National

June 2

June 23-July 6, 2015 Oceanic and Atmospheric Administration, allows scientific simulations to be projected and played across a replica of the globe.

The Aquarium is hosting three lectures on sea level rise on June 24, June 25 and July 1. The first and last lectures focus on scientific reasons for and implications of sea level rise, while the June 25 lecture is a historical perspective about how humanity has dealt with sea level changes in the past.

This summer, the Aquarium is also holding a series of concerts on its rooftop veranda, plus two theatrical performances.

On August 16, the Aquarium is hosting a comedy play about climate change called “Lollygaggers,” written by a Jet Propulsion Laboratory scientist. On August 9 and 12, a production of “The Tempest” by William Shakespeare will be performed on the Aquarium’s front lawn.

Across Rainbow Harbor, the shops and restaurants at Shoreline Village are doing well so far this year, according to Debra Fixen, property manager. “It is super busy,” she said. “We have had a lot more cruise passengers stopping by,” she said, referring to tourists traveling on Carnival Cruise Line’s three ships that leave from Long Beach. “We give them a discount at a lot of restaurants.”

All the retail space at Shoreline Village is currently full, Fixen said. One shop, a candy store, has yet to open its doors as it awaits approval from the health department, which Fixen said should come in a few weeks. Two stores, Queen Mary Couture and Transatlantic Style, recently relocated from the Queen Mary and have been doing very well, she noted.

This summer, Shoreline Village is again

Long Beach Business Journal 33 hosting its Seaside Summer Concert Series, featuring two bands on Saturdays and one on Sundays. “There are a lot of things to do with the family,” Fixen said of the village.

“It’s a great place for waterfront dining . . .

We have the arcade. You can rent a bike, ride a surrey, or take a Long Beach Segway tour.”

Fixen said she expects this summer to be busy. “I think tourism as a whole is up in Long Beach . . . I am really optimistic,” she said.

Water Activities From cruise liners to sea shuttles, operators of seagoing vessels in Long Beach are reporting that, thus far, 2015 has been a busy year.

Since Carnival Cruise Line began offering year-round travel to the Mexican Riviera and Hawaii last October, the cruises have been very well received, according to Vance Gulliksen, spokesperson for the cruise company. “Additionally, the Carnival Miracle underwent a multi-million-dollar dry dock renovation that added a number of guest-pleasing features” that include a pub, bar and entertainment, Gulliksen wrote in an e-mail to the Business Journal.

“With Carnival Miracle’s seven-day Mexican Riviera sailings and 15-day Hawaii sailings, combined with year round three- and four-day Baja voyages operated by the Carnival Imagination and Carnival Inspiration, Carnival Cruise Line expects to carry 550,000 guests annually from Long Beach,” Gulliksen said.

“Carnival is the only cruise line to operate three year-round ships from Long Beach and, with such a diversity of cruise (Please Continue To Page 34)

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:45 PM Page 34

34 Long Beach Business Journal

SPECIAL REPORT – HOSPITALITY & TOURISM

Attractions (Continued From Page 33)

Above, Dan Salas, owner of Long Beach-based Harbor Breeze Cruises, said whale-watching cruises are his company’s most popular offering. Harbor Breeze also offers harbor cruises and special events aboard its vessels. Harbor Breeze Cruise’s newest vessel is the Triumphant, pictured below, operating year-round whale-watching cruises. (Photographs by the Business Journal’s Evan Patrick Kelly)

Aquarium of the Pacific President and CEO Jerry Schubel said he expects a busy summer at the Aquarium, and anticipates that more than 1.5 million people will visit the Aquarium this year.

(Photograph by the Business Journal’s Evan Patrick Kelly)

lengths, itineraries and departure days, we have high expectations for sailing from Long Beach this year,” he added.

For those looking for a closer getaway across the water, Catalina Express offers daily trips to and from Catalina Island, located just 22 miles of the coast of Long Beach. Chris Austin, who recently was hired on as Catalina Express’s new marketing director, said business this year has been strong.

“We are seeing very high numbers [of passengers] every month out of the year, and we’re carrying the momentum through to the summer,” Austin said.

Catalina Express’s ridership figures are “trending along with 2002, which was our best year to date,” he emphasized. “I think the weather has been a huge help in [2015] getting to be one our best years ever,” he added.

Over the past year, a beach club, a spa and zip line tours have opened on the island, which Austin said are being well received by visitors. “There are so many things that you can . . . attract different people with [to Catalina], whether it is the diving or the hiking or restaurants, or just the regular beachand spa-type vacation,” he said.

Catalina Express is continuing its birthday promotion at least through the end of the year, allowing guests to register online for free rides on their birthdays.

“It has been really successful. We have seen thousands of riders every month that are going free on their birthday.”

Harbor Breeze Cruises, which offers whale-watching outings and cruises in the Long Beach harbor, experienced a 25 percent increase in business in the first quarter of 2015

June 23-July 6, 2015 compared with the same time in 2014, owner Dan Salas told the Business Journal.

“We attribute a big portion of that growth to the corporate business coming to Long Beach,” he said, referring not only to conventions but also to groups booking events with Harbor Breeze. “We are getting some big name clients. We have had Honda and Boeing, just to say a few.” Harbor Breeze’s most popular cruise is its whale-watching cruise, Salas said.

Walk-up business alone has grown about 5 percent, Salas said. “I don’t anticipate much more growth until we get The Pike back in business,” he said, referring to the construction to create new outlet stores near his business. “We are keeping our fingers crossed that we will get some traffic off the new and improved Pike.”

Last year, traffic on Long Beach Transit’s (LBT) water taxis – the AquaBus, which ferries people around Rainbow Harbor and Queensway Bay, and the larger AquaLink, which goes from Rainbow Harbor as far as Alamitos Bay – was as high as it has ever been, according to LBT spokesperson Kevin Lee. “If you look at our total ridership last year for all the water taxis, it was 50,000 customers,” Lee said of 2014. That’s a 60 percent increase since 2011. “It is just more and more popular. We are getting the word out more now that the water taxis are available,” he said.

The AquaBus costs only $1 per trip, while the AquaLink is $5 one-way. “Our water taxi service is the best view in town, especially in the summer [and] especially for the price,” Lee said.

LBT’s water taxi service began over Memorial Day weekend, beating last year’s passenger figures for that weekend, Lee said.

The taxis run seven days per week through Labor Day weekend, after which point they run on weekends through November 1.

This summer, LBT is also offering $10 bus trips to Los Angeles County and Orange County museums. A schedule is available online at www.lbttransit.com. ■

June 2

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:45 PM Page 35

2015

June 23-July 6, 2015

SPECIAL REPORT – HOSPITALITY & TOURISM

Long Beach Business Journal 35

Steve Goodling: Maestro Behind The Ballroom Curtain ■ By BRIAN O’LEARY BENNETT Special to the Long Beach Business Journal “I love the selling process,” Steve Goodling said to me on the phone last week.

It explains much about his leadership, methodologies and values for the 15 years he has been president/CEO of the Long Beach Area Convention and Visitors Bureau (CVB). His “process” – others say vision – led to the CVB’s extraordinary success in rebranding Long Beach nationally as an “urban waterfront playground,” and catapulted this city into the top 10 percent of destination cities across America as a preferred convention site, particularly with Washington, D.C.-based associations.

“It’s about Long Beach, not Steve Goodling,” he told me. Having just spent several days with him, his smart, seasoned team and Mayor Robert Garcia on the CVB’s annual sales mission, #DCmeetLB, it became clear why this is true.

Part of his success is that he doesn’t worry about his success. Goodling isn’t the first one to speak, makes no grand entrances or appearances, his name and picture aren’t splashed all over CVB materials. In fact, he’s not anywhere mentioned on the CVB website – unlike every other CVB president/CEO in the top 15 largest American cities.

It’s not that he doesn’t like the limelight, but it’s a tool he uses strategically for the CVB, not himself. Goodling’s focus is on the “process” that implements his vision.

During each presentation in Washington, D.C., when it came time to introduce Mayor Garcia to a room full of

existing and potential clients, Goodling deferred. It added the familiar, personal touch to have the CVB’s D.C. team introduce their mayor to their customers, clients, friends in the nation’s capital.

Goodling spoke third and only briefly.

“It’s important they know the head of the organization is here and supportive of the full organization,” he said. That contribution to the process was enough to help create the right environment for his customers.

“When we brought the birthday cake to the AACP [American Association of Colleges of Pharmacy] client meeting, it felt like families meeting for the first time,” he said. “Thirty of their staff. Our staff and mayor. We created a union. And when we told her [the CEO] to ‘make a wish’ and she said, ‘I already got it – we’re going to Long Beach,’ it makes it all worthwhile.

You’re successful when you make them successful. It’s that simple.”

His judgment, leadership and vision comes after a decade with Marriott Hotels, followed by another decade in Asia as a senior executive with the Shangri-La Group, Asia’s premier five-star hotel and resort chain.

“We hosted heads of state. I was exposed to international standards of excellence. We were anticipatory, provided non-intrusive service, had customer deliverables and we had to hit our timelines,” Goodling recounted.

He also surrounds himself with a smart, confident and seasoned staff.

“Steve sets the bar. Has a vision. And when it’s decided we, he, all of us implement it,” said Quentin Roberts, the new CVB vice president of sales.

“In D.C., we had a nickel-and-dime-ya

reputation with hidden costs,” Goodling said. “There was a lack of trust between our customers and us. At home we were not as responsive and strong as we should have been. I was determined to create a customer-focused organization.

“All work was verified with our customers before their convention so they understood costs and risks. And there were no hidden costs!” he continued.

“We initiated customer response surveys, which never existed, and helped us improve and reshape the CVB and convention center. We created a separate marketing department and a new postconvention booking service department to move things faster and make it an enjoyable experience for our clients. It’s all about the customer. Do it the right way – details are very important – and ensure the customer has a great experience.

“Many CVB’s stumble because they haven’t forged friendships with their cities.

We went out of our way and never had one department that hasn’t helped us. We respect institutions. We work with individuals. They make it happen.

“Same for county government. Our friend, L.A. County Supervisor Don Knabe, was instrumental in bringing the National Association of Counties convention to Long Beach in 2016.”

And then came along the innovative TED conferences – “the platform for ideas worth spreading” – which brought together high powered, original thinkers and doers from around the world. From 2009-2013, TED held its convention in Long Beach.

Goodling speaks about the transformative impact TED had on him and the CVB with excitement and humility.

“I learned so much from TED about

ways in which conferences should be run,” Goodling said. “It was a privilege to have them. I’d watch and dissect how assets are deployed or repositioned so we could take us ahead of where other facilities are today.

“TED was the catalyst for the $10 million renovation of the Arena and creation of the Pacific Room, the only one its kind in the country that allows us to reconfigure our meeting space exactly in ways our customers want. TED gave us a tremendous opportunity to learn what meetings should be: a terrific, engaging, social environment. TED was hyper-engaged with their convention attendees. It was the first time we learned to use our facilities in different and creative ways.

“This generation embraces authenticity. Integrity in everything we say and do. They want unique spaces to congregate, not just meet. We are totally invested in their success.”

What’s next for Steve Goodling? He rattles it right off: “Continue activating unique spaces around the convention center. Keep our concepts fresh. Upgrade the Terrace Theater plaza and make it available as a turn-key facility for our clients. Make the convention center a one-stop experience where clients deal with one person, not several. Make Long Beach a destination for conventions and pleasure events.

“With POW! WOW! LONG BEACH art and music street fair this weekend, we’re now hooked into a global network of artists and organized gallery shows. It is just another of the cutting-edge, trendy, forward and fun events we want to bring to Long Beach.

“I love this city and want to continue to market its uniqueness.” ■

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:45 PM Page 36

36 Long Beach Business Journal

June 23-July 6, 2015

PERSPECTIVE

HealthWise

Small Business Dollars & Sense

Men, Make Your Years Count

Create a Successful Family owned Business Succession Plan

E

ach June, a congressional health education program is promoted to raise awareness of preventable health problems and encourage early detection and treatment of health conditions in men.

Despite having higher rates of death and lower life expectancy than women, men are less likely to visit a doctor for an annual physical.

According to the Agency for Healthcare Research and Quality, American men are 24 percent less likely to visit a doctor than their female By jeffrey counterparts. luther, M.d.

The reluctance to see medical professionals is problematic, since men are more likely than women to smoke, drink, make unhealthy or risky lifestyle choices and put off regular checkups and medical care. The tendency to make these “more risky” lifestyle choices is exactly why men need to see a physician regularly.

In addition, there are some health conditions that only affect men, such as low testosterone and prostate cancer. Many of the major health risks that men face – like colon cancer or heart disease – can be prevented or treated with early diagnosis. Screening tests can find diseases early, when they are easier to treat. Preventing disease or illness is a much easier step to take than going through the actual treatment process.

The Agency for Healthcare Research and Quality states that men are 28 percent more likely than women to be hospitalized for congestive heart failure and 32 percent more likely to be hospitalized for long-term complications of diabetes. Routine checkups and regular preventive screenings are vital to maintain optimal health.

Important health screenings for men: • Men should get their blood pressure checked at least once every two years.

• Most men should get their cholesterol checked at least once every five years.

• If a man is 50 or older, he should be tested for colorectal cancer. Some men may even need to be tested earlier if there is a family history.

• If a man is 65 to 75, and has ever smoked, he should consider an abdominal aortic aneurysm (AAA) screening test.

• If there are feelings of stress, anxiety or depression for more than two weeks, men may want to consider a screening for depression.

• Get vaccinations recommended by a primary care physician. Men are 24 percent more likely than women to be hospitalized for pneumonia that could have been prevented by getting an immunization, per the Agency for Healthcare Research and Quality.

Along with regular doctor visits, and taking proactive health screening measures, there are many other things men can do on their own to prevent disease and stay healthy. Regular exercise and healthy eating play a key role in developing and maintaining good health.

Being overstressed from work or home life also can lead to health problems. Eating right, exercising and getting adequate sleep are proven to help reduce stress. Smoking also can cause health complications. Smoking cessation classes should be considered for any current smoker.

In 1920, women only outlived men by an average of one year, whereas today there’s a five-year difference, according to the Centers for Disease Control. Turn these numbers around. Make prevention a priority.

(Jeffrey Luther, M.D., is the program director for the Long Beach Memorial Family Medicine Residency Program.)

Effective Leadership overloaded, overwhelmed And Underperforming

D

o you remember what you did the first hour of every school day? You went to your Homeroom. In doing so you would enter your day slowly. You would catch up with friends and get a couple of things done so you could focus on the day before you.

Those days are long gone. Most people

By MiCk I talk to do not have a homeroom moment.

UklejA They tend to jump out of bed with an immediate on-call awareness. They check never-ending e-mails, get distracted by multiple headlines and topics, hear their phones ping for their attention, diffuse any focus that would make them feel good or be productive.

In order to have a peak performance, you need a peak purpose. Using the first moments of your day to gain clarity is a great strategy. The following are some tips on what and what not to do during those first moments.

Then we’ll look at a deeper, surprising reason to elimi-

F

amily-owned businesses account for more than 28% of U.S. firms. There isn’t a one-size-fits-all approach for family-owned businesses and many have unique or complex arrangements when it comes to ownership, roles and responsibilities. However, one commonality that many family-owned businesses share is that they want their business to stay in the family for years to come.

According to a recent Wells Fargo survey, 40% of small business owners

By Ben they were motivated to open their business to family members in the said AlvArAdo future, and 34% plan to transition their business to a family member at retirement. It’s never too early to think about what your succession plan should be. Consider: Define family members’ roles – Identifying roles and responsibilities for family members who are active in the business will help you articulate how the transition will impact each stakeholder, and what type of support the successor can expect. If you’re hoping to hand the business down to a son or daughter, now is a good time to check in to understand if he or she wants to be involved in the business long-term, and in what capacity. It is also a good time to take a fresh look at your company’s staffing structure, analyze performance, and assess who is most equipped to lead when you step down.

Explore financing options –Identify how to properly transition the business to the next owner from both financial and legal standpoints. Is your business a sole proprietorship or is it co-owned? Will your successor outright purchase the business, or will it be gifted to them? Does your business carry any debts? What are the tax implications?

These are important questions to ask as you map out your departure from the business.

Make sure you have a team of trusted professionals in place, including a banker, CPA and attorney, to help you answer these questions. Schedule time to meet with these professionals to learn more about how you can best fulfill your financial needs, and to design an agreement that’s fair for all family members involved in the business.

Set up a smooth transition – After you establish the financial and legal aspects of the succession plan, you’ll need to make sure your business is as organized as possible when you hand over the reins. One way you can do this is by creating an up-to-date, streamlined business plan. To help make it easier for more business owners to prepare plans, Wells Fargo recently introduced the Business Plan Center that provides stepby-step instruction to create or update written business plans.

Establish a timeframe – As you finalize your succession plan you’ll want to make sure you have a timeline. Build any remaining training into the plan so you can be certain that you’re leaving the business in capable hands. As you communicate your succession plan to family and staff, make your exit strategy clear so everyone knows your role in the business following the transition.

There are many emotions involved in selling or handing down a family business, and a well-organized succession plan will help save you time and money. It also will give your successor the best chance of long-term financial success.

(Ben Alvarado, a 23-year veteran of Wells Fargo, is the president of the bank’s Southern California Region, which stretches from Long Beach to Orange, Imperial and San Diego counties.)

nate being overloaded and overwhelmed as you begin your day.

For starters, never check your e-mail first thing in the morning. Checking it diffuses your focus. Use that time to strategically think about the day before you. Start with the big picture of what you want your life to be. What’s important? What things could be considered bunny trails?

Gain awareness of your “bigger” life, then marinate it with gratitude. One of the most productive habits to develop is taking time to peruse your “gratitude grid.” One result of doing this is that you will acquire an elevated confidence.

You gain certainty about the tasks before you. This enhances both your insight and courage to sidestep the distractions that urgently scream for your attention. Focus and gratitude in your beginning moments creates winning moments.

It’s easy to focus on the wolves at the door and ignore the termites in the floor. The greatest threat to our well-being are not the external wolves growling and howling. The greatest threat are those internal termites as they silently eat away at the infrastructure of our soul.

Distractibility and frenetic behavior are symptoms of a trait that is unique to modern society. It has to do with overloaded circuits in the brain. It leads to what is called Attention Deficit Trait (ADT). It’s different than Attention Deficit Disorder (ADD).1 ADD is a neurological disorder that has a strong genetic component. It inflicts about 5 percent of adults. Those with

it have a propensity to procrastinate and miss deadlines.

Disorganization, tardiness, drifting and forgetfulness are common symptoms. Those with ADD tend to achieve inconsistent results in life. Some of our most brilliant people have ADD. They surprise us when they come off unsatisfactorily. They often possess rare talents and gifts that at an early age are in danger of going unnoticed.

ADT (Attention Deficit Trait), is caused entirely from the environment. It is a phenomenon of modern life. As we have throttled up our lives with increased acceleration over these past three decades, the demands on our time have exponentially increased.

Overtime the brain loses its ability to fully and thoroughly take care of business. It can become immobilized in part, and it’s not genetic. ADT takes on the negative traits of ADD, but with none of the positive traits.

So rather than focusing on the wolves at the door, pay attention to the termites in the floor.

Spend those first few moments getting a clear view of your life and clarity about where you are going. Strategic thinking starts at the floor, not at the door.

1“Overloaded Circuits: Why Smart People Underperform; Hallowell, Edward, Harvard Business Review, Jan 2005.

(Mick Ukleja keynotes on topics related to leadership and personal productivity. He’s president of LeadershipTraq, and author of several books. Check his weekly blog at www.leadershiptraq.com.)

June 2

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:45 PM Page 37

2015

f U.S. owned when it comy want

owners in the r at rensider: memmpact hoping to unhat caucture, own. to the proprior will ations? siness. r, CPA se proto de-

ects of ossible o-date, repare s step-

make can be e your knows

siness, o will

bank’s perial

June 23-July 6, 2015

PERSPECTIVE

Realty Views Underwater Homeowners Still Have A long Way To Go

E

ven though equity is returning to the American homeowner in many cases, a new report indicates that a vast number of U.S. homes remain under water – what is owed on the mortgage is more than the value of the home – and that this situation is not going to change draBy TerrY roSS matically any time soon.

A newly released report by the real estate valuation site Zillow – based on first quarter statistics – notes that the number of homes with negative equity is slowly decreasing – but that the rate of decrease is slowing, and over half of those who face this situation are at least 20 percent under water.

Another troubling statistic in the Zillow Negative Equity Report is that, on the whole, homes will rise in value at a slower pace than over the past several years and it could take as long as a decade or longer to regain the lost equity. And remember, we are at least seven to eight years into this down cycle.

According to the study, the U.S. rate of negative equity among mortgaged homeowners was 15.4 percent (almost eight million) in the first quarter of 2015, down from 16.9 percent in the fourth quarter of last year. Four million nationally are in the category of 20 percent or greater of negative equity. A year ago the rate of negative equity was 18.8 percent and has improved in all of the 35 largest U.S. housing markets, which is a good sign.

“It’s great news that the level of negative equity is falling, but what really worries me is the depth of negative equity,” said Zillow Chief Economist Dr. Stan Humphries. “Millions of Americans are so far underwater, it’s likely they may not regain equity for up to a decade or more at these rates. And because negative equity is concentrated so heavily at the lower end, it throws a real wrench in the traditional housing market conveyor belt. Potential first-time buyers have difficulty finding affordable homes for sale because those homes are stuck in negative equity.

And owners of those homes can’t move up the chain because they’re stuck underwater in the entry-level home they bought years ago. The logjam at the bottom is having ripple effects throughout the market and, as home value growth slows, it will

be years before it gets cleared up. In the meantime, we’ll be left with volatile prices, limited inventory, tepid demand, elevated foreclosures and a whole lot of frustration.”

At the peak of the real estate crisis, more than 15 million homeowners owed more on their mortgages than their homes were worth. Foreclosures, short sales and rapidly rising home values freed nearly half of those homeowners, leaving 7.9 million homeowners upside down at the end of this year’s first quarter.

The rate of underwater homeowners was much higher among the homes with the least value. More than 25 percent of those who owned the least valuable third of homes were upside down, compared to about 8 percent of the most valuable third of homes.

Spring and summer are the busiest buying and selling seasons, and this year there is high demand for homes in the bottom third of the market. However, a disproportionate number of those homeowners are simply stuck in their homes and can’t afford to sell to buyers looking for homes in their price range.

Markets vary widely throughout the country and even regionally. In Atlanta, for example, 46 percent of low-end homeowners were under water, compared with 10 percent of high-end homeowners. In Baltimore, 32 percent of low-end homeowners were in negative equity, compared to 9 percent of those who own the highest-value homes.

Among the 35 largest housing markets, Las Vegas (at 25 percent), Chicago (23.7 percent) and Atlanta (23.2 percent) had the highest rates of homeowners in negative equity. A smaller share of homeowners were upside down in Miami and Detroit, but homeowners there were more deeply under water. In both places, over 60 percent of homeowners in negative equity were more than 20 percent under water.

Here in Southern California, we have done better than most but there are wide variances. The Los Angeles area is at an 8.1 percent negative equity rate, but 53.3 percent of those are at least 20 percent under water. San Diego is at 8.6 percent negative equity, with 49.1 percent at least 20 percent under water.

For Riverside, the numbers are 16.4 percent in negative territory with 56.8 percent who are 20 percent or more under water.

As past studies have indicated, in our region the coastal markets have rebounded stronger and sooner than inland markets, and California as a whole is doing better than many other states.

Depending on the economic factors that influence housing, each region of the country will be unique in its own circumstances.

(Terry Ross, the broker-owner of TR Properties, will answer any questions about today’s real estate market. E-mail questions to Realty Views at terryross1@cs.com or call 949/457-4922.)

Trade And Transportation The other Canal

L

ast August, Egypt announced an $8.4 billion upgrade to the Suez Canal. The planned expansion called the Suez Canal Axis, was ambitious. The 101-mile long Canal curBy ToM o’Brien rently has a daily capacity of approximately 50 vessels but is limited to traffic in a single direction. The plans called for the creation of a two-way channel along a 43-mile stretch of the Canal, allowing it to accommodate close to 100 ships per day. The impact on the global supply chain of a project of this nature is dramatic.

Planners predict that creating a second parallel lane for traffic will reduce waiting time from 11 hours to something closer to 3 hours. Shippers realize not only time savings but, in eliminating a significant bottleneck, get a much more reliable and predictable supply chain.

And yet, the August 2014 announcement did not seem to get much press here.

There might be any number of explana-

tions. Last summer the local trade community was consumed by a number of challenges, including an expired longshore labor agreement and significant equipment shortages resulting in congestion at the docks and across the entire supply chain. Local observers have also seemingly been much more interested in the expansion of the Panama Canal given its proximity and the potential it has to divert cargo to the east coast.

There was also great skepticism about Egypt’s plans. This would be the Suez Canal’s largest expansion since it was constructed in the 1860s. And it would be undertaken by a government still somewhat in turmoil in the wake of the many changes brought about by the Arab spring. Many, both inside and outside of the country, viewed the project as more political grandstanding than anything else.

Then there was the financing plan and the development timeline. While the original Canal was constructed over a 10-year period, Egyptian President Abdel Fattah Al Sisi called for completion of the expansion within a one-year time frame. This depended upon mobilizing 41,000 workers

around the clock and financing that was 100 percent Egyptian, i.e. no lining up external support from organizations like the World Bank. According to CNN, this would require moving 8.8 billion cubic feet of earth while using more than half of the dredgers currently in operation around the globe.

Not many questioned the need. Despite security concerns in the region, the Suez Canal handles approximately 10 percent of the world’s trade. And it is in position to capture more. With the cost of doing business in China increasing, the center of gravity for global manufacturing is increasingly moving west in Asia to lower cost locations like Vietnam and Thailand. This makes an Asia-to-Europe-to East Coast of North America route more competitive with transPacific trade lanes or ones involving a transit of the Panama Canal. Furthermore, rapidly increasing vessel size is already proving problematic for an even expanded Panama Canal. Almost 55 percent of the world’s container capacity is now carried by vessels that are deemed post-Panamax and for which that route is not an alternative.

Suez, which is not constrained by locks, can accommodate more of the largest vessels.

Fast forward to 2015. Dredging work is scheduled to be completed in mid-July and Egypt will hold an inauguration ceremony in early August before the first ships move through the Axis. Some work still remains

Long Beach Business Journal 37

Vol. XXVIII No. 12 June 23-July 6, 2015

EDITOR & PUBLISHER George Economides SALES & MARKETING EXECUTIVE Heather Dann STAFF ASSISTANT Larry Duncan EDITORIAL DEPARTMENT SENIOR WRITER Samantha Mehlinger STAFF WRITER Sean Belk CONTRIBUTING WRITER Brian O’Leary Bennett, Michael Gougis, Gerrie Schipske PHOTOJOURNALIST Evan Patrick Kelly COPY EDITOR Pat Flynn The Long Beach Business Journal is a publication of South Coast Publishing, Inc., incorporated in the State of California in July 1985. It is published every other Tuesday (except between Christmas and mid-January) – 25 copies annually. The Business Journal premiered March 1987 as the Long Beach Airport Business Journal. Reproduction in whole or in part without written permission is strictly prohibited unless otherwise stated. Opinions expressed by perspective writers and guest columnists are their views and not necessarily those of the Business Journal. Press releases should be sent to the address shown below.

Office South Coast Publishing, Inc. 2599 E. 28th Street, Suite 212 Signal Hill, CA 90755 Ph: 562/988-1222 • Fx: 562/988-1239 www:LBBusinessJournal.com Advertising and Editorial Deadlines Wednesday prior to publication date. Note: Press releases should be faxed or mailed. No follow up calls, please. For a copy of the 2015 advertising and editorial calendar, please fax request to 562/988-1239. Include your name, company and address and a copy will be sent to you. Distribution: Minimum 22,000.

Regular Office Hours Monday-Friday 8:30 a.m.-5:30 p.m.

Business Journal Subscriptions Standard Bulk Rate: $28.00 1st Class: $70.00 (25 issues–1 year)

to be completed but it appears that Sisi’s hopes for a one-year turnaround time may largely be realized.

Yet major questions remain unanswered.

Egypt is predicting that the canal will more than double its revenue due to increased traffic. But as the Panama Canal has learned, paying for the costs of a major infrastructure project like this one requires increasing tolls but not so much that the shipper takes an alternative route. It’s a delicate balancing act.

Others have questioned whether the rapid pace of development has come at the expense of safeguards, like those put in place in Panama, to mitigate environmental impacts including preventing invasive species moving from one body of water to another.

And then there’s the toll on the workforce which may yet come under more scrutiny once the project is completed.

Still, for an industry that often talks about game changers, this one is actually a pretty big event. And with the Panama Canal expansion set to open by April of next year, the next round in the battle for cargo is well underway.

(Dr. Thomas O’Brien is the executive director of the Center for International Trade and Transportation at CSULB and an associate director for the METRANS Transportation Center, a partnership of USC and CSULB.)

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:51 PM Page 38

ART MATTERS

Long Beach Business Journal 38 June 23-July 6, 2015

Brought To You By The Arts Council For Long Beach • www.artslb.org

PowWow Long Beach Brings Global Street Art to City Walls ■ By SARAH BENNETT Arts Council for Long Beach Contributor

S

he started painting her sassy, curvy cartoonish characters on the walls of abandoned buildings in Paris, but street artist Fafi has gained international recognition for taking her so-called ‘Fafinettes’ global, using their hearted cheeks and knee-high socks as a jumping off point for discussions of feminism, art and public space.

From June 22–28, Fafi will bring her work to Long Beach, where she will install a piece on the fence of Lyon Art Supply in the East Village Arts District.

Fafi is just one of 15 globally significant artists who will converge on the city as part of the weeklong PowWow Long Beach, a local version of the Hawaiian-born street art festival of the same name. Brought to Long Beach by PowWow founder

Fafi

Jasper Wong with the help of downtown-based advertising agency InterTrend Communications, the festival invited 10 of the artists to paint murals over the course of the week on designated walls in the city with the intention of leaving them there until the next year’s festival invites 10 more artists to paint over those.

“I saw [PowWow events] in Taiwan and Hawaii and was so touched by the interaction between the artists and the viewers,” InterTrend CEO Julia Hwang said. PowWow is unique in that the public can walk by anytime and observe the muralists at

different stages in their process. “When they’re resting, they’re chatting and talking about their art with whoever is there. It’s not like a docent showing you around and telling you the history of the piece – this is the artist talking casually while drinking coffee on their break.”

PowWow Long Beach is the first full-scale PowWow to happen on the mainland U.S. and is making the most of the arts resources in the city. The PowWow School of Music invites local and young musicians to participate in roundtable discussions and performances throughout the week. The Art Theatre will host several related screenings and discussions (including one between Fafi and lifestyle mogul Jeff Staple); and the Long Beach Museum of Art – itself once home to an internationally recognized video art program – allowed the muralists to paint the walls of the museum for the current exhibition Vitality and Verve: Transforming the Urban Landscape (opening June 26 and running through September 27). “[It’s] temporal art that can’t be sold, can’t be collected and isn’t part of the public ownership,” said Long Beach Museum of Art’s executive director Ron Nelson. “Rather, it is to be appreciated for the limited time it can be viewed and documented in photos and minds of all our visitors.”

PowWow Long Beach is an important opportunity for the public to engage with art, and also for local artists to engage with their counterparts from around the world. But the weeklong festival is also a chance to increase the visibility of the city to businesses and other largescale events looking for a place to set down roots.

“Events like this and Agenda and TED – these are the kinds of things that will bring people into the city, and the economic value is great,” Hwang said. “A lot of us that love Long Beach are tired of [the city] being a best kept secret. It’s been a best kept secret for a long time and it’s time the secret gets out.” ■

Gallery Corner The University Art Museum has two thought-provoking exhibitions currently on view, Joel Tauber: The Sharing Project and Lost in Time: Selections From the Peckenpaugh Collection. Joel Tauber, the artist behind The Sharing Project, was inspired by his struggles teaching his young son Zeke about sharing. Part video and part sculpture, the project encourages the public to donate their toys to share as part of the exhibition. The exhibition closes on Sunday, July 19 with a reception featuring family-friendly activities. Guests are invited to take toys from the gallery and share them with others. Lost in Time is a permanent collection exhibition featuring photographs from the Peckenpaugh collection donated by Tom and Barbara Peckenpaugh. This exhibition explores themes of the sublime and our relation to the natural landscape. It closes Saturday, December 12. For more information, including directions and parking, visit csulb.edu/uam or call 562-985-5761. (Image Credit: Joel Tauber, Attempting To Restore Happyville, 2013, from The Sharing Project.)

Where Art, Tech and Place Intersect

TH

To

■ By DW FERRELL Executive Director, Localism

Y

ou [almost] missed it. On June 20th several blocks of downtown buildings were covered with expansive murals from local artists, including the entire façade of the historic Lafayette building in the East Village Arts District. However, this sky-scraping mural showcase can only be experienced at the intersection of art and technology. Just one day before international PowWow muralists set their brushes to brick, local virtual curators covered vacant walls with art from Linden to Pine Ave. with pixels rather than paint.

Thankfully you didn’t miss this virtual art experience, aptly titled "WALLS: an ARt Walk". These augmented reality (AR) murals are still on view through an app that allows you to “look through your phone” as a lens to see hidden canvases. Download the ARLB app (Augmented Reality Long Beach), then point your phone’s camera at the Lafayette at 140 Linden Ave. and you will see an eight-story mural of psychedelic rainbow eyes.

Meander down Linden and west on 1st St. to experience many more virtu-rals (virtual murals). Along the way aim your phone at blank walls that seem forgotten, and they will be illuminated. Head to Long Beach Blvd. and explore down to Broadway. Don’t miss the weathered wall opposite the Pacific Towers building. Then follow the Promenade to 3rd St west, and finally land at 236 Pine Ave. So what’s the backstory on this experience? Two years ago Bryan Amburgey was experimenting at the WE Labs co-working space with technology that only major brands were able to implement: virtual ads embedded on existing locations using AR. This is when I first met Amburgey, as he was exploring ways to flip this technology around to make it community centric. He also saw a business model in it, where users of the app could get tickets to unique events or exclusive pricing for products by ‘unlocking’ virtual places.

Ca Up

Fro Givin

Tuesd Join u want count recip berge comp Elisa Ang is among several local artists featured in Long Beach WALLS: An ARt Walk, using the new ARLB app

Exactly a year ago Amburgey demonstrated this by handing me an active print edition of a local newspaper. I viewed it through an AR app and it came alive with video content by viewing printed pages through a special app. It was rough, but I caught a glimpse of Amburgey’s vision.

Fast forward to 2015. Amburgey showed a version of ARLB to another WE Labs member, Brandon Halvorson of Assignment Creative.

Amburgey’s passion for artists was matched by Halvorson’s passion for musicians; Assignment Creative is building something like a bitcoin to help fund up-and-coming music artists. The two gentlemen hit it off and conceived to kick off this ‘virtual placemaking’ event that combined historic locations, art, tech and live music along the way. A couple beers later and "WALLS: An ARtwalk" was born.

Most of the original artwork by local artists is available for sale through wallslb.com or in nearby spaces and galleries. If you fall in love with a piece displayed on the civic scale, you can tap it within the app to find out how to own the original, and hang it on your own wall. ■

Essen

Thurs Rapid are a know ment found

Fro Ask t

July 2 In thi techn sourc

Save

Augu Join t ence ship, s

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:51 PM Page 39

THE NONPROFIT PAGE

Long Beach Business Journal 39 June 23-July 6, 2015

Curated By The Long Beach Nonprofit Partnership

To Start or Not to Start a Nonprofit – That is the Question According to GuideStar, there are 164,315 nonprofit organizations in California. 1,839 nonprofits are registered in Long Beach and 999 of those have an income under $100K. Every week, someone is thinking about starting a nonprofit organization. There is a lot to consider before making the decision to start your own nonprofit: from assessing community need to having the ability to invest the time and resources necessary to be successful.

To this end, our partners at The Legal Aid Foundation of Los Angeles have provided the following information from their publication, “Forming a Tax Exempt California Nonprofit Organization”.

There are two decisions your organization must initially make. First, do you want to become a nonprofit corporation?

The incorporation process is governed by the California Corporations Code.

Therefore, all the forms and processes will be governed by California law.

Next, does your organization wish to seek tax exempt status? Tax exempt status provides many advantages for an organization. Some of these advantages include no state or federal income tax liabilities, assisting your organization with qualifying for certain grants and/or funding and, in some instances, providing your donors with a charitable contribution tax deduction. Tax-exempt status is governed by both state and federal regulations. Under state law, the Franchise Tax Board establishes filing and reporting requirements; under federal law, the Internal Revenue Service establishes such requirements.

Consider the following before beginning: Nonprofit versus For-Profit A nonprofit organization is defined by the American Bar Association as a corporation “no part of the income or profit of which is distributed to its members, directors or officers”. All nonprofit organizations have three basic characteristics:

1. They are designed from the outset to be nonprofit.

2. None of the income or assets may be divided among members, officers, or directors.

3. They may only pursue legally defined purposes.

A for-profit corporation, on the other hand, would allow for income and asset distribution and serve very different purposes.

Types of Nonprofits Under California Corporations Code, there are four basic types of legal organizations that can be used for nonprofit purposes, outlined below.

An unincorporated association is formed for some purpose other than for profit and is generally the organizational structure selected by small local clubs, labor unions and fraternal organizations.

Often the association structure is selected if the organization will only operate for a short time period. Advantages include: easy to organize; informal; no incorporation costs; may enter into contracts; may sue or be sued; limited record keeping. Disadvantages include: Somewhat vague state regulations; potential individual director and member liability for acts and omissions within the scope of their authority; difficulty in doing business in association’s name; difficulty in raising funds; net income potentially taxable.

The corporation is the most common and probably the best form of organizational structure for most nonprofit organizations. It is a legal entity, organized according to prescribed legal requirements and having a specific name and specific powers granted by law. Advantages include: recognized legal entity; clear statutory requirements; no individual director or officer liability for good faith acts and omissions that are within the scope of their duties and in the best interest of the corporation and within the exercise of their policy making judg-

Capacity Corner: Upcoming Calendar of Events From the Nonprofit Partnership Giving USA 2015 – The Annual Report on Philanthropy Tuesday, June 30, 2015, 10:00am-Noon Join us for a special presentation on the findings of the Giving USA 2015. You won't want to miss out on the most comprehensive report on charitable giving in our country, now in its 59th year. This presentation will examine giving by the source, recipient and sector. A nonprofit leadership panel, moderated by Marc Kellenberger, Founding Principal of The Phoenix Philanthropy Group, will discuss and compare the national numbers to what they are seeing in our region.

Essentials of Human Resources Certificate

ment; prerequisite from some funding sources to receiving monies. Disadvantages include: costs of formation; need to fulfill corporate formalities; formalized structure, reporting and record keeping requirements.

Charitable trusts are generally developed by one person, the trustee, for the purpose of holding legal title to certain property, the trust, for the benefit of another, the beneficiary. This organizational structure is used for very specific and very limited purposes, for example, a Family Foundation. Advantages include: can be established and operated relatively quickly and inexpensively; does not have to comply with any statutorily required formalities; founder has the authority to name the trustee. Disadvantages include: must register with the Attorney General and is subject to the Attorney General’s continuing supervision.

Limited Liability Companies…are a hybrid between corporations and partnerships. Although they offer the limited liability of corporations, they have greater flexibility of structure and can be structured so that the entity is not subject to corporate income tax. Advantages include: members, managers and officers are not personally liable for obligations or liabilities of the LLC, with the same narrow exceptions as corporate shareholders; flexible structure allowing members to actively participate in management and control of company; can be structured so that the entity is not subject to corporate income tax but has pass-through tax status similar to a partnership. Disadvantages include: costs of formation and annual tax; law is unclear as to whether LLCs can be formed for charitable purposes; very limited circumstances under which LLCs can obtain 501(c)(3) tax exemption.

An alternative to independent 501(c)(3) status may be operating as an informal organization under the legal umbrella of an existing charity.

Advantages of fiscal sponsorship: • Can raise grants, contributions, and other funds based on the sponsor’s track record and experience • The sponsor has fiscal, accounting, personnel, management and other systems in place • Can operate informally, no incorporation costs • The sponsor assumes the risk of liability Disadvantages of fiscal sponsorship: • Loss of control over activities, since ultimate authority lies with the board of directors of the sponsor • Community perception that its activities are those of the sponsor. The sponsor may receive credit for a suc-

cessful project. A sponsor with a bad reputation may tarnish the project • As a small part of a larger organization, the project may not receive timely and adequate support. Also, the sponsor might retain a significant portion of the funds for its administrative expenses.

• May be difficult to disengage from the sponsor and continue the project as a separate corporation.

The Legal Aid Foundation of Los Angeles is the front line law firm for poor and low-income people in greater Los Angeles.

Steps to Forming a Nonprofit Organization in California Pre-Incorporation Identify Board Members • Conduct Community Needs Assessment • Identify Goals & Objectives • Develop a Mission Statement • Decide on Structure • Train Board on Responsibilities • Decide on a Name • Reserve a Name ($10 fee good for only 60 days) • Develop Articles of Incorporation • Develop Bylaws • Develop an Organizational Workplan • File Articles of Incorporation ($30 fee + $5 certification fee) • File Form SI-100—Statement of Information (domestic nonprofit corporation—$20 fee due within 90 days after filing for incorporation) • Complete Initial Registration with CA Attorney General’s Office—Use form CT1 or URS v.4.02 and complete within 30 days of receiving assets/funding) • File CA Form DE-1NP—Request for Employer Tax ID Number ( if pay $100+ in wages per quarter) • File Form SS-4—Employer Identification Number (due even if organization has no employees) Tax Exemption • File IRS Form SS-4—Employer Identification Number • *File IRS Form 1023/1024—Federal Tax Exemption ($400 or $850 in fees based on average annual gross receipts over 4-year period. 1023 due within 27 months of Incorporation) • *If appropriate—File IRS Form 5768—Election / Revocation of Election by and Eligible Section 501 (c)(3) Organization to Make Expenditures to Influence Legislation • File CA Form FTB 3500/3500A— State Tax Exemption ($25 or $0 fee) *File these forms together and attach Articles of Incorporation and Bylaws.

Thursdays, July 16 to August 20, 2015, 2:00-5:00pm Rapidly changing workplace initiatives, legal landscapes and workplace culture are an integral part of the human resources function. The program provides the knowledge and practical skills for human resources administration and management. This 6-session certificate program will focus on real-life situations that are found in organization’s today.

From our Partners Ask the Expert: Finding Funding for Technology Projects July 23, 2015, 11:00am WEBINAR In this interactive webinar, they will examine how to make a data-informed case for technology investment and explore funding sources, cost estimates, and needed resources. For more info, visit: nten.org.

Save the Date: Stronger Together Nonprofit Conference August 24, 2015 — Los Angeles, CA Join three strong partners working together on the second annual nonprofit conference for California with leading edge content and exceptional presenters in leadership, strategy, advocacy, and risk management. For more info, visit: calnonprofits.org.

The area’s regional capacity builder, serving local organizations to strengthen and grow through leadership, education and collaboration. Offering: Professional Development & Training Networking & Collaboration Custom Training & Consulting Services Information Resources To learn more, visit us at www.lbnp.org.

4900 East Conant St., Building O-2, Suite 225, Long Beach, CA 90808 562.888-6530

1_LBBJ_June23_2015 2_PortAnniversary 6/20/15 7:51 PM Page 40