High Desert Business Journal September 2012

High Desert Business Journal SEPTEMBER/OCTOBER 2012

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T H E I N D E P E N D E N T B U S I N E S S A U T H O R I T Y O F T H E V I C T O R VA L L E Y

Vol. 3 No. 5

SEPTEMBER/OCTOBER 2012

Apple Valley is Ready for Business North Apple Valley Industrial Specific Plan Moves Forward

The 6600 acre North Apple Valley Industrial Specific Plan includes and surrounds the Apple Valley Airport, and has the fastest and most efficient truck proximity to the I15 of any Victor Valley industrial region including SCLA. From North Apple Valley, it is approximately 20 minutes to three main distribution arteries: the I15 which heads to Chicago, Highway 58 which services Northern California, and the I40 which reaches the lower states.

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By Paisley Taylor, MBA n spite of the economy, state pilfering of local funds and the demise of RDA, the High Desert has several very healthy and wellrun municipalities. The Town of Apple Valley is one of them. Continuing to be financially sound, Apple Valley is now

putting money into their general fund reserves for the first time in several years.

With high scores from the community regarding quality of life, a new and nationally recognized public safety training center, improvements in roads and infrastructure underway and growth in retail, the town continues its modus operandi of moving in the right direction.

The Town of Apple Valley’s most ambitious project is gaining ground, as the town lays in the pieces for the North Apple Valley Industrial Specific Plan (NAVISP). The area is home to the Walmart Distribution Center and TruBlu Logistics, and is estimated to support more than 30,000 manufacturing and logistics jobs when complete.

See APPLE VALLEY Continued on page 3

Women in Mining

YOUR COMMUNITY

Silverado Power Brings New Breed of Solar to Victorville

Already recognized as one of the lowest cost cities to do business with in California, Apple Valley is aggressively building healthy incentives into their approach for enticing business. While other cities in the region incent businesses by forfeiting decades of sales taxes, or

Educational Professional Group Teaches the Importance of Mining

Targets Solar Niche for Smaller Projects on Non-Pristine Lands

By Paisley Taylor, MBA

W

ith a number of projects underway in San Bernardino County and Victorville, Silverado Power, a California-based solar developer, is bringing a new type of solar project to the region.

Silverado Power is a utility scale solar power developer, active in the Southwest and Southern California, boasting a nationwide portfolio of projects under

development. Their focus is on distributed generation projects of two to twenty megawatts, built on private, previously disturbed lands, and close to existing power infrastructure.

Compared to larger solar thermal projects that have a larger footprint and are located on pristine federal lands, Silverado’s projects are smaller in scale, less visible, have minimal cultural, environmental and biological impacts and are therefore less controversial, according to See SILVERADO Continued on page 6

High Desert Business Journal 12277 Apple Valley Road, #384 Apple Valley, Ca 92308 Time-Dated Material – Do Not Delay

Presorted Standard U.S. Postage Paid Santa Ana, CA Permit No. 113

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f it’s not grown, it has to be mined” is the slogan for Women in Mining, an educational, non-profit group dedicated to educating students, teachers and the community about the importance of minerals and mining in their everyday lives.

The group is made up of women and

some men, in all different capacities in the mining industry, including production and environmental managers, geologists, mining engineers, chemical engineers, planners, safety managers, consultants, See MINING Continued on page 5

In this Issue Business Briefs.....................................................2 Banking..................................................................4 Desert Valley........................................................5 Council Candidates...........................................7 REO Checklist.......................................................10 Housing Exposed...............................................11 Bond Bubble........................................................11 Technology...........................................................12

Affordable Care Act...........................................12 Winds of Change................................................13 Investment Taxes................................................14 Residential Real Estate.....................................15 Community..........................................................16 Business Calendar..............................................17 Events Calendar..................................................18 Arts & Culture......................................................19

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SEPTEMBER/OCTOBER 2012

Business Briefs People Frank Robinson, Apple Valley Town Manager Receives ICMA Recertification

Vol. 3 No. 5 September/October 2012 12277 Apple Valley Rd. , #384 Apple Valley , Ca 92308 Publisher Paisley Taylor publisher@highdesertbusinessjournal.com 760.403.2136 ADVERTISING Paisley Taylor / 760.403.2136

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The opinions expressed do not necessarily reflect the views of the Journal or its owners. High Desert Business Journal is not responsible for typographical errors or omissions.

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Recognized for his initiative, creativity and innovation, Apple Valley Town Manager Frank Robinson has been recertified as an International City/County Management Association (ICMA) Credentialed Manager.

Of the 478 incorporated cities in California, only 50 have City or Town Managers with the ICMA Credentialed Manager designation. Robinson is the only Town/City Manager in the High Desert that has received this designation.

Prior to Apple Valley, Frank served 14 years as President/Township Manager of The Woodlands, Texas, where he created an award-winning economic development organization.

• Walden Family Services recently leased 15434 W Sage Street for their foster care and adoption agency. Coldwell Banker Commercial’s Walt Wehrmann represented the landlord and tenant.

• Locally owned, Sleep Center Mattress will soon be opening at 15208 Bear Valley Road in the Walmart Shopping Center. Coldwell Banker Commercial’s Colleen Butcher represented the landlord and tenant.

• ABC IT Experts, a Los Angeles based company will soon be expanding their services to the Victor Valley from 15475 Seneca in Victorville. Coldwell Banker Commercial’s Janette Wehrmann represented the landlord and tenant.

St. Mary Foundation Welcomes Mike Page Director of Special Gifts

St. Mary Medical Center Foundation is pleased to welcome Mike Page as the new Director of Special Gifts.

Mike worked in the telecommunication industry for more than 25 years most recently serving as the Director of Governmental and External Affairs for Verizon. In addition to his work, Mike has actively been involved in the community in chambers of commerce and Rotary Club as well as serving on the California State University Foundation Board. For the past 10 years, Mike has represented the community as an elected member of the Mojave Water Agency. Mike holds a bachelor’s degree in business management and political science from California State University, San Bernardino.

Businesses • A seasonal lease for Halloween Spirit was secured by Coldwell Banker Commercial’s Retail Specialist, Colleen Butcher. The retail property is located at the Bear Valley Plaza Shopping Center in Victorville.

• Edward Jones recently leased 1,407 square feet of commercial space in the Civic Center area of Victorville.

Coldwell Banker Commercial’s Retail Specialist Colleen Butcher, represented the property owner.

• Serrano Apartments, a 4 unit property located in Apple Valley, recently sold to an investment group represented by Coldwell Banker Commercial’s MultiFamily team; Mehdi Mostaedi and Bob Basen.

• Rockwell Pest Control leased ±1,212 SF industrial space with small office in the Ridgecrest Business Park, Suite 214.

Rob Kurth of Kursch Group facilitated the transaction.

• Options for Youth, Public Charter Schools signed a 5 year lease at 15378 Ramona Ave in Victorville. They will relocate from a retail center on Amargosa Road in Victorville to the ±5,808SF freestanding building on Ramona Ave. Ryan Travis and Rob Kurth of Kursch Group facilitated the transaction.

• LeafWing Center leased a ±1,000 SF commercial/medical space on Tuscola Rd in Apple Valley, just north of St. Mary’s Medical Center. Jeremy Schmidt of Kursch Group facilitated the transaction representing the Landlord. The deal closed just a month after listing.

• Lifetouch Photography Studio signed a lease for ±3,584 SF (contiguous suites 7 & 8) at Carriage Square on Hesperia Road. Rob Kurth of KurschGroup facilitated the transaction.

• Barstow Outlets, a 328,283-squarefoot retail center comprised of 24 freestanding buildings has named Lee & Associates Inland Empire North exclusive leasing representative and asset manager. Leasing agents Carol Randall, Vice President and Elizabeth Brown, Executive Vice President, will be working with the owners to revive and renovate the property.

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• Pacific Aviation Group, LLC recently signed a 64-month renewal and expansion into 58,732-square-foot facilities.

Fastenal Company, signed a 36-month renewal for its existing 6,322-square-foot facilities. Stirling Capital Investments secured the two leases at the Southern California Logistics Centre (SCLC), a 2,500-acre industrial and commercial complex in Victorville, Calif.

• High Desert Mavericks and the City of Adelanto Sign a Three Year Lease.

The three-year lease with three one-year options will keep the California League team at Stater Bros. Stadium, the home of the Mavericks, through at least the 2015 season.

Commercial, Land, Multi Family • Coldwell Commercial Banker’s Retail Specialist Colleen Butcher sold a 4,020 square foot retail building that fronts Historic Route 66 in Old Town Victorville, representing the seller.

• Coldwell Banker Commercial’s REO Specialist Josh Rey sold a multi-family complex in Victorville to an investor for $200,000. Josh represented both the seller and the buyer in the transaction.

• A 10,000 square foot commercial building in Victorville was leased to a local builder by Walt Wehrmann of Coldwell Banker Commercial. Walt represented both the landlord and the tenant in the lease transaction.

• Bank owned commercial property on C Street in Victorville sold to investor, Coldwell Banker Commercial REO Specialist, Josh Rey represented both the seller and buyer.

• An investor purchased a 160 acre property in Baker, zoned Urban Mixed. Land Specialist, Mehdi Mostaedi of Coldwell Banker Commercial represented the seller in the transaction.

• Coldwell Banker Commercial’s Janette Wehrmann sold a 31,750 square foot industrial building in Barstow for $250,000 to an owner/end user. The seller was represented by Janette Wehrmann in the transaction.

News Briefs Effects of Redevelopment Dissolution Prompt Guarantee of SCLAA Bonds to Sue the State of California Syncora, the guarantor of several bonds issued by redevelopment agencies (RDAs), including some issued by

See Business Briefs Continued on page 8 DRE#01461062

Thank you to our wonderful sponsors who helped make our Home Makeover contest a HUGE success!!

• Victor Valley Family Resource Center is expanding and has recently leased space at 9780 E Ave in Hesperia, CA. Mehdi Mostaedi of Coldwell Banker Commercial facilitated the transaction.

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SEPTEMBER/OCTOBER 2012

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• Apple Valley Continued from page 1

giving away long term benefits for near term gains, Apple Valley has an approach that ensures a long-term win-win for businesses and the community.

The 6600 acre area includes and surrounds the Apple Valley Airport, and has the fastest and most efficient truck proximity to the I15 of any Victor Valley industrial region including SCLA. From North Apple Valley, it is approximately 20 minutes to three main distribution arteries: the I15 which heads to Chicago, Highway 58 which services Northern California, and the I40 which reaches the lower states.

According to Jason Lamoreaux, President at Coldwell Banker Commercial, Apple Valley is within a 3 hour drive of servicing over 22 million people in Southern California’s 8 metropolitan regions, and an additional 2 million people in the Las Vegas Metro Area, putting it in a strong position to compete for logistics and manufacturing business.

Affordable labor as well as open and affordable land, which will become an increasingly valuable asset as the Los Angeles and Inland Empire basins fill up, are expected to naturally drive demand to the region over time.

Apple Valley’s precedent-setting work to make the region business friendly and efficient , has resulted in a streamlined permitting process for the Northern Industrial area so that developers can go from plan submittal to ground-breaking in as little as 120 days.

In addition, Apple Valley is moving toward completing its Multi-Species Habitat Conservation Plan, allowing the Town to implement mitigations and preserve habitat conservation areas in compliance with the Federal Endangered Species Act. The Town of Apple Valley would be a “one-stop shop” by eliminating the review of US Fish and Wildlife Service and California Department of Fish and Game for project approval.

The biggest challenge to developing the NAVISP is developing the necessary infrastructure, including water, sewer and roads. The State of California has forcibly taken local tax dollars from its towns and cities these last years, including between 7 and 10 million dollars from the Town of Apple Valley, which could have financed much of the approximately $17 million in necessary improvements. RDA funds that were slated to finance the improvements have been eliminated by the State of California as well.

In post-RDA times, most municipalities are working with private developers to fund similar projects. Currently the Town

of Apple Valley is partnering with private developers and public utility companies to focus on developing regional, off-site infrastructure rather than just local on-site fixes which do little to extend critically needed infrastructure throughout the north end of town—think good-neighbor.

“Once we have the infrastructure in place, development will take-off,” said Frank Robinson, Apple Valley Town Manager. “As the market begins its rebound, now is a good time to lay the foundation for the next industrial expansion so that we can reap the benefits of a healthy and diverse local economy.” n

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SEPTEMBER/OCTOBER 2012

Lending Spikes in Inland Empire

Businesses Take on Loans for Equipment, Buyouts, and Commercial Property

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By HDBJ Staff he Wells Fargo Inland Empire business banking group, serving small businesses with sales primarily between $2 and $20 million, increased new loan originations by 90% for the first half of 2012 over 2011.

According to Doug Hargraves, Wells Fargo Regional Manager for Riverside and San Bernardino County, customers and prospects alike are beginning to borrow money. “We are seeing a rather large increase in loan applications and general overall customers. We are seeing existing

customers borrow more often.”

Hargraves says for lending, the stars seem to be aligning. “We haven’t changed staffing levels, or our commitment to lend. It’s just that this is a good time.”

Hargraves lays out the components of the current lending increase.

Historically Low Interest Rates “We have historically low interest rates now,” stated Hargraves. “The improved economy, better financial position of borrowers, and interest rates are as favorable as they’ve been in a long time.”

Lending Advice From a Banker

• The three key professionals you need for your business are a CPA, an attorney, and a banker.

• Don’t be afraid to approach your local bank. The mistake a lot of business owners

make is to wait until they are about to start their business, to establish their relationship with a bank. It is much easier if you have an established relationship with the bank.

• Before you walk in for credit, reach out to a business banker in your community. In

terms of selecting a bank, whether it is a small local or regional player or a large bank that has a strong presence in the community, and has a small business focus. You want to make sure the people you are meeting with from the bank are empowered and can make decisions in your local community. Some big banks will send out a package to Texas, for instance, to be decisioned.

• At Wells Fargo, we take pride in being a bunch of small community banks inside of

a large bank. Within the $2 - $20 million customer segment, all decisions are made locally to extend pricing, manage it locally so it’s not about a transaction, it’s about a relationship. It doesn’t start with the loan. It starts well before and extends well after.

Wells Fargo has passed the billion dollar mark nationwide for SBA lending. Hargraves says they do see a lot of SBA lending, through two programs, the 7a and 504. 7a is a flagship program and up to 80% of their lending volume comes from that program.

“Wells Fargo is number one nationally for that program.”

Economic Improvement

“Lending almost came to a halt in 08.

There was a reluctance for people to take on additional debt, which had a negative impact on the economy,” said Hargraves.

“Balance sheets were tough. Businesses didn’t borrow to hire, buy commercial real estate, or equipment until they got through the difficult times.”

With slow economic improvement through 2010 and 2011, Hargraves sees more confidence in the economy. “As it relates to business, there have been improvements in financial position, as we see in reviewing annual loan renewals. Business sentiment has gradually improved as well.”

According to Hargraves, there is a sense that the trough has been reached.

“Commercial real estate values are a good example. Not only have they hit bottom, but there is a slight increase in pricing.

You don’t want to buy a building for $1million today if it’s going to be worth $.9 million tomorrow. So there is a pent up demand. With the increase in value, people want to get in the game.”

Pent Up Demand

Hargraves believes they are seeing a lot of pent up demand. “Finally business owners are starting to come to the table. They are expanding their facilities, and selling and buying new and larger

facilities.” He says they are seeing one healthcare practice buying out another healthcare practice, an activity not seen in several years.

Hargraves also sees a trend with companies replacing equipment. “After waiting many years to upgrade or replace, businesses are running out of time before their equipment becomes worn out or technologically obsolete.”

Another trend across the Inland Empire is an increase in construction. “We are seeing a fair amount of smaller manufacturers starting to borrow. We are a big distribution market because of access to freeways, and land prices are more favorable than in LA or Orange County. As the economy recovers, I expect to see a lot of growth here in the Inland Empire.”

New Businesses

While established businesses are increasing their borrowing, Hargraves says the price of entry for aspiring business owners is still daunting. “It used to be people would borrow from friends and family, or use equity in their homes.

Friends and family don’t have a balance sheet and are less apt to lend seed money, and personal equity has been significantly impacted during the downturn. So we don’t see as many start-ups. I think we will see start up activity increase once we see an improvement in the personal balance sheets of people out there.” n

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According to Hargraves, banks are looking for business owners who show high character, have a good reputation, are known in their industry and are able to weather good times and bad. “It continues to be a challenge to lend to people with difficult credit,” he said. “If people have experienced difficulties, it is even more important than usual to have a relationship with the bank so they understand what has transpired.”

Traditionally banks don’t lend to those with a bankruptcy on their record, but will look on a medical bankruptcy more favorably. Hargraves explained, “A medical bankruptcy doesn’t generally indicate a person’s character. Bankers are really trying to evaluate not just the ability, but the willingness of a person to be responsible for the loan. You don’t want to lend to someone with a poor ability to pay their debts.”

1. Credit: You need to be credit worthy, with good business and personal credit. It’s a person’s character we are looking at, and that’s how we judge. If you haven’t already pulled credit reports, do it. Be prepared to explain derogatory credit points.

2. Cash flow: Banks want to see how profitable the business was in its most recent fiscal year, and two of last three years.

3. Collateral: Banks like collateral. With something tangible to liquidate, the bank has something to fall back on in an effort to repay all or a portion of the amount lent. Real estate and equipment are easy to lend against. Companies without hard assets are more difficult to lend to. For instance a software company’s inventory is code, so it is not something that can be liquidated easily.

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REAL ESTATE SOLUTIONS

SEPTEMBER/OCTOBER 2012

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• Mining Continued from page 1

accountants, equipment operators and teachers.

Members come from organizations including the State California, Mine Safety Health Administration, Cemex, Omya, TXI, Mitsubishi, Cal Portland Cement, Boron, Sleepy Bear Gold Mine and Terramins.

Christine Grandquist, Environmental Manager for Omya’s California and Arizona facilities said the organization does educational outreach, and works to integrate their projects with education standards on a national level, so that teachers can integrate the materials with their curriculum.

Member Dinah Shumway, geologist and owner of Terramins comments that most people are unaware of what is mined.

Darlene Bray of Cemex confirms. “People are surprised at where things come from – that their everyday products come from mining.”

And indeed, what comes from inside the earth and how it is used is often unexpected. Calcium carbonate alone, a specialized form of limestone, is used in

paint, plastic, paper, roofing, tiles, carpet, toothpaste, cereal, crackers, gum and pills.

An annual golf tournament is the organization’s primary fundraiser, supporting activities throughout the year. Services and supplies for hands on science projects are provided at no cost to the schools.

For more information on Women in Mining, go to www.WomenInMining.org.

Toothpaste Project

One of the teaching tools used by Women in Mining, is “Toothpaste with a Twist”, a hands-on science project.

Volunteers from WIM bring toothpaste ingredients calcium carbonate and sodium bicarbonate, both of which are mined.

Students mix the ingredients together to create a toothpaste base. From there the students flavor and color their product and rate the results. The program is run in conjunction with MEEC, Mojave Environmental Educational Consortium. n

WIM participated in Youth Empowerment Leadership Community (YELC) at Apple Valley’s Granite Hills High School. Their project as designed to make the students aware of what is reclamation on a large scale, by doing an excavation project involving chocolate chip cookies.

Desert Valley Hospital Leads the Way in High Desert Healthcare

T

homson Reuters recently named Desert Valley Hospital a Top 100 Hospital in the Nation for the sixth time. The opening of a new Heart Center is another milestone in the hospital’s impressive growth. The Center is part of the nearly $40 million expansion of the hospital, prompted in large part by the hospital bed shortage in the region. The 50,000-square-foot wing added 53 new beds along with 12 new intensive care unit rooms.

Desert Valley Hospital is one of 16 facilities that make up the Prime Healthcare Services network which was recently recognized as a Top Health Network in the Nation by Thomson

Reuters. Dr. Prem Reddy, well known for his philanthropic work in the High Desert and beyond, is Chairman of the Board, and consistently named as one of the Nation’s most influential healthcare leaders.

Founded by High Desert resident Dr. Prem Reddy, the hospital continues to address the healthcare needs of the community while engaging in many charitable endeavors which have impacted all generations.

The Desert Valley Senior Wellness Center in Apple Valley offers many free health related services to seniors and exemplifies the hospital’s commitment to residents. It has proven popular with local

seniors who are taking full advantage of the educational and recreational opportunities available to them.

The hospital recently sponsored the “Nifty Fifty” Active Adults Expo held at The San Bernardino Fairgrounds and hosted by Radio Y102. Coming up this month is the hospital’s Annual High Desert Fitness Challenge which attracts both senior participation as well as local businesses. Free flu shots, mammography screenings, smoking cessation classes are just a few of the many preventive programs offered to keep the community healthy.

Desert Valley Hospital is affiliated with

Desert Valley Medical Group (DVMG) which features many of the region’s leading primary care and specialist physicians. DVMG offers urgent care/walk-in clinics and industrial/occupational medicine and has offices throughout the High Desert making healthcare affordable, accessible and convenient.

The hospital recently introduced its newly revamped website with many added features designed to encourage more engagement from the local community. The internet has become an essential tool for outreach programs as more and more people are embracing the new communication technologies. n

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Chris Wiedemann, Manager of Business Development at Silverado Power.

Wiedemann said Silverado developed their niche by learning from mistakes made by other developers in the past, and tailoring a development strategy to avoid some of the pitfalls that slow down other developments. “It helps us not only develop projects that are more viable, but it takes risk and uncertainty out of the equation. We’ve really reaped the benefits of this targeted strategy.”

Silverado has had great success in working with California utilities, winning a significant portion of the Renewable Auction Mechanism program in 2011.

“We also won the largest individual share of Power Purchase Agreements through the 2010 SCE Renewable Standard Contract program. That was a significant win for us,” said Wiedemann.

Wiedemann explains the three big project development hurdles in California are interconnection, permitting, and power marketing. “If we can get an Interconnection Agreement, Conditional Use Permit from the local municipality, and a Power Purchase Agreement executed from the utility for a set period of time, we’ve removed a lot of the risk from the project development cycle.”

Wiedemann said Silverado has many projects that have met these thresholds, and several are in the final stages of moving forward to meet the last requirements. “We are really excited about our near-term projects, including those in Victorville. We have clean interconnection results for these projects, which means we can plug into the system at a low cost. The viability of these projects is very high, and the projects will bring a lot of investment to the region.”

Silverado approaches private land owners whose sites are close to existing infrastructure and fit a number of other criteria. In a time where there are few positive returns to be had for property, land owners are happy to talk to Silverado. “There are lots of reasons we target specific properties,” said Wiedemann. “It is not left up to chance.

Solar is one of the few strong real estate markets now. If we can develop together,

it’s a great opportunity to create some value that might not otherwise be there for some time.”

Being a good neighbor is part of Silverado’s business practices and their staff is regularly present in Victorville to build business community relationships.

“These projects will be around for a long time. We want to build these relationships early,” said Wiedemann.

Perimeter landscaping, especially in more inhabited areas, creates a visual buffer around the facilities. Wiedemann points out that the facility structures are not very high either, standing at ten feet or lower, so have minimal visual impact.

Taking their proposed vegetative buffer designs out to the community, Silverado went door to door to get feedback from adjacent neighbors for one of their Victorville properties. The sites have no moving parts, produce no emissions, do not increase traffic, and make no noise. “We received overwhelming support for the project,” said Wiedemann of the Victor Mesa Linda site. “We were perceived by some to be an improvement over the adjacent empty lot that had become prone to dumping, and a security concern with its nighttime pedestrian traffic.”

Job creation is also a benefit of the projects. Wiedemann estimates they will add approximately 325 jobs to the region between the five proposed projects.

“That’s a significant contribution,” said Wiedemann, “and one of the big reasons we are excited to be in San Bernardino County and Victorville.”

Silverado has been working closely with Victor Valley College, assisting with the Green Educational Pathways certification program, and offering field trips and assistance with development of the program curriculum. “Our goal is for 85% of the construction jobs to be local,” said Wiedemann, “and that means within San Bernardino County, and preferably from Victorville and the High Desert.”

Wiedemann delivers Silverado’s ultimate message. “We are serious about bringing jobs and economic benefits to Victorville and San Bernardino County through these projects, and we believe we can do that. We are a long-term partner in these communities. There are lots of speculative developers out there, and lots of projects that have a low likelihood of coming online. Ours have a high chance of being built in the very near future – 12 to 18 months, which is soon. We stand to bring a great deal of benefit to the area by working with the local constituents and look forward to continuing to build a strong and lasting relationship with the community.”

For more information on Silverado Power, go to www.SilveradoPower.com n

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Town and City Council Candidate Q&A

SEPTEMBER/OCTOBER 2012

PAGE 7

High Desert Business Journal asked our City Council Candidates the question on every business owner’s mind, “If elected, what will you do to promote business in your city or town?” Candidates were e-mailed the questions.

Here are the responses from those who sent their reply back to High Desert Business Journal by deadline.

Apple Valley

Hesperia

Larry Cusack I will be proactive in securing businesses to locate here in Apple Valley. I, the Council, Town Manager and Staff will be creative in promoting the positive business opportunities and incentives we have. Quality business growth and sound residential planning will benefit our community greatly during these economically challenging times.

Christina Burton Entice with local benefits, posting advertisements or presenting economic development initiatives at city council meetings.

Highlight the town’s personal educational system, family friendly community activities, proximity to major highways. Discuss unique cultural heritage of area, importance of small town values. Draw in businesses with tax break incentives, low rent store fronts on a main street.

Jackie Moore Now is the time for an old fashioned approach - go seek out business, meet face to face. Display geographical access, desert, sea and mountains. Share our towns attitude/motto “Better Way Of Life”. Promote our people, friendly, caring, involved, motivated and active life for all ages.

Art Bishop As a long time resident, I would be honored to serve Apple Valley. If elected, I will strengthen the relationship between our Chamber of Commerce and the Town of Apple Valley, and continue to foster partnerships between public and private entities in ways that benefit our community.

David Holman By making Hesperia an attractive place to invest. Not by picking winners and losers, but by streamlining regulation and keeping fees low for everyone, including existing businesses. I will work to connect Ranchero Road to I-15, and bring infrastructure to the I-15 corridor to allow commercial and industrial development.

Eric Schmidt I will promote new business growth in Hesperia by using targeted marketing in industries which our citizens desire, such as Trader Joe’s. Through personal meetings and discussions that highlight the true value inherent in our city, especially our I15 corridor, I believe we will be able to attract such businesses.”

Brent Farr I will give tax/incentives to businesses so that they can have the resources to promote their own business in a way that is most beneficial to them. This will encourage new businesses to come to Hesperia, put people to work locally, and spread the word about our local businesses

Paul Bosacki Over the last 6 years, I have worked on making the process as red tape free as possible. From zoning to planning to business licenses, I took what experience I learned from the planning commission to the City Council. We have had more business growth in the last 6 years, than in the previous 16 years together.

James Blocker I would look into what the major obstacles that business’ face when they attempt to open up in our city, then I would look at

how we can make our city more attractive to business. With new business comes more jobs and with bigger companies come more high paying jobs which we need.

Barstow Rich Harpole I believe the most important thing we can do for business is to create a more business friendly environment by reducing red tape, making the required processes more userfriendly and our staff more accessible to those who need assistance. Government should be a partner in the process and not an obstacle.

Gus Nassar If elected, I plan to work closely with the chamber of commerce to create a business directory for local businesses, a web page to list local businesses, and allow local businesses to advertise at local games.

I will work closely with local newspapers and TV station to promote business advertising.

Adelanto

Wright We must retain and expand existing businesses, attract new investors and market the city. We need to update our General Plan and City’s business plan, to reflect today’s reality. We must create a vision for the City’s future that ensures a mix of businesses, industries and housing types that are complimentary and synergistic.

Jeremiah Thompson I would work with the other council members and staff to implement incentive programs for the construction and expansion of new and existing businesses. The best way to get business is to make it profitable in the long term not throw money at them

for short term gains.

Victorville Mike Rothschild I will continue to keep SCLA under Victorville city council, expand VMUS (electrical utility) which is currently making $2.9 million profit, expand our sewer plant at SCLA. Preserve our Old Town restorations. Complete sale of $1.2 billion VV2 plant for local property taxes. Use our $54 million lawsuit to build reserves.

Ryan McEachron I will continue to work with the council to create opportunities where we can attract business to locate here and create jobs. I will also work with those business already here to make sure that the city is doing all that it can to help them be successful.

Marshall Kagan Past councils have incurred $350 million in debt for no assets. My job will be to incur no such new debt, and do what can be done to avoid dramatic reductions in services. As a retired CPA, I have experience doing this.

Shawn Hubbard Victorville is a city without a brand. For example, when you think of San Francisco, the Golden Gate Bridge probably comes immediately to mind. If I am elected, I will lead efforts to examine what assets the city possesses and use them to market our brand and attract new business.

Jim Cox I have worked in both the private sector and for government and know the value of a business friendly environment. Creating a positive image means not over regulating, but reducing government red tape. The council and the business community much pledge to work together to promote a business friendly city.

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About Rick Roelle

• Recipient of the Sheriff’s prestigious Commander’s Award for a sting operation that caught networks of dangerous drug dealers and car thieves • Apple Valley Town Councilman, 2004 to present • Mountain Desert Committee Delegate • San Bernardino Association of Governments (SANBAG) Delegate • Mojave Desert So lid Waste Joint Powers Authority Delegate • Attended Victor Valley College and San Bernardino College • Rick’s family includes his two sons Derek and Ryan

Our Community Leaders Support Rick Roelle for Supervisor Below is a partial list of endorsements: George Runner, California State Board of Equalization San Bernardino County Sheriff Rod Hoops San Bernardino County District Attorney Michael Ramos San Bernardino County Professional Firefighters President Bret L Henry City of Rancho Cucamonga Mayor Dennis Michael City of Needles Mayor Edward Paget Town of Apple Valley Mayor Barb Stanton City of Victorville Councilwoman Angela Valles SBPEA SEBA AFL-CIO Riverside San Bernardino Counties PORAC Inland Chapter RickRoelle@yahoo.com

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PAGE 8

SEPTEMBER/OCTOBER 2012

Business Briefs Southern California Logis tics Airport Authority (SCLAA), has filed suit against the State of California. The lawsuit asserts that the State of California has “substantially and unconstitutionally impair(ed) the rights of parties to contracts among the RDA’s, the bondholders, and their bond insurers, including Syncora.” The lawsuit names the state of California, State Controller John Chiang, California Director of Finance Ana Matosantos and the County of San Bernardino AuditorController Larry Walker. The lawsuit also specifically identifies debt issued by SCLAA as having been guaranteed by Syncora.

Desert Valley Hospital Earns ‘A’ in Safety

Desert Valley Hospital was awarded an “A” Hospital Safety ScoreSM which was calculated under the guidance of The Leapfrog Group’s Blue Ribbon Expert Panel using publicly available data on patient injuries, medical and medication errors, and infections. Hospitals across the country were assigned an A, B, C, D, or F for their safety. In California, 264 hospitals were graded and Desert Valley Hospital was the only High Desert hospital to receive an ‘A’ rating. Dr. Margaret Peterson, CEO of Desert Valley Hospital stated, “Coming on the heels of our recent Top 100 Hospital in the Nation award, it further recognizes the patient-focused, compassionate care provided by the physicians, nurses and staff at Desert Valley Hospital.”

for an integrated regional health system including their respective Southern California hospitals, an expansive physician network, and numerous outpatient and urgent care facilities in Orange County and the High Desert.

Portable Diesel Engine Compliance Deadline January 1

The Mojave Desert Air Quality Management District reminds High Desert owners and operators of portable dieselfueled internal combustion engines that beginning January 1, 2013, their equipment must comply with new weighted particulate matter emission fleet averages established by the California Air Resources Board.

Common portable diesel engines include air compressors, generators, concrete pumps, tub grinders, wood chippers, water pumps, drill rigs, welding machines, asphalt zippers, street sweepers and mobile screens.

Owners of portable diesel engines will be required to meet the following statemandated emission limits by the indicated deadlines, and submit Statements of Compliance to both the MDAQMD and the California Air Resources Board:

Hoag and St. Joseph Health Announce Affiliation

Health Care System Will Serve All of Orange County and the High Desert

St. Joseph Health and Hoag Memorial Hospital Presbyterian announced plans

For more information, call MDAQMD at (760) 245-1661 and select “1” for Permitting/Engineering.

Cash for Grass Kicks Off September 4th The Cash for Grass program has received additional funding to reinstate the program, with application being accepted beginning September 4, 2012. Funding is available through the California Department of Water Resources, Proposition 84 Implementation Grant, and in conjunction with the Mojave Water Agency. The program is available to residents, businesses, and other organizations. For more information contact the City of Victorville Conservation Division at 866-955-4426, or go to www.victorvillewater.com under Water Services.

Joint agency Code Enforcement Sweep Targets Businesses Operating Out of Compliance Code Enforcement teams from the Town of Apple Valley, County of San Bernardino, Hesperia and Adelanto joined together earlier this month in a sweep to target businesses operating out of compliance. Five Apple Valley officers and six officers from other agencies conducted 208 investigations, targeting businesses with expired licenses, mobile businesses such as landscapers, contractors, handyman services and ice cream vendors conducting business in Apple Valley without a Town license, or construction companies doing business without the proper permits. The day-long task resulted in 124 notices of violation and six citations issued. For more information on code enforcement activity in the Town of Apple Valley, visit www.AVCode.org or call (760) 240-7000 x7560.

High Desert Regional Job Fair Seeks Businesses

Hosted by County of San Bernardino Workforce Development Board. Meet, interview and hire high quality workers to fill your full and part time positions. Admission and parking are FREE. September 26th, 2012 9 am – 2 pm. San Bernardino County Fairgrounds Building 2. To register, contact Jenny De La Mora at jdelamora@wdd.sbcounty.gov.

Healthcare, Transportation and Logistics & Manufacturing Expect Hiring and Business Growth

The San Bernardino County Workforce Investment Board (WIB) surveyed 2,220 local businesses regarding growth, employment trends and quality of workforce for the region and industry sector.

The top three industries in the County – healthcare, transportation and logistics and manufacturing – indicate hiring and business growth is expected.

In the Deserts, 21% of employers surveyed reported an increasing need to hire and 16% indicated they were planning expansion.

In Healthcare, 26% of employers surveyed reported an increasing need to hire and 26% reported they were planning expansion.

In Transportation & Logistics, 19% of employers surveyed reported an increasing need to hire and 19% reported they were planning expansion.

In Manufacturing, 22% of employers surveyed reported an increasing need to hire and 25% reported they were planning expansion.

Employers who are interested the Workforce Investment Board programs may call: (800) 451-JOBS or visit www. csb-win.org.

SEPTEMBER/OCTOBER 2012

PAGE 9

Desert Valley Medical Group

Has The High Desert Covered Adelanto Adelanto Clinic

395

5 3

Victorville 18

18

2

N W

Carriage Square Industrial Clinic

Primary Care Physicians

E S

Desert Valley Hospital Emergency Care Desert Valley Medical Group Urgent Care

Bear Valley Road

Hesperia Road

1

395 Hesperia Clinic

7

Desert Valley Medical Group doctors are among the best qualified and most experienced physicians in the High Desert.

In addition, they practice at convenient locations in, or near your community making quality healthcare accessible and affordable.

DVMG is affiliated with Desert Valley Hospital which is consistently ranked as one of the Nation’s top-rated healthcare facilities.

It was recently expanded to include stateof-the-art cardiac care with an open heart surgery suite.

Make the smart choice and choose a Desert Valley Medical Group doctor for your healthcare needs.

Bear Valley Road Senior Wellness Center

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Apple Valley

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hesperia 4

1 DESERT VALLEY HOSPITAL Emergency Care DESERT VALLEY MEDICAL GROUP Urgent Care 16850 Bear Valley Road Victorville CA 92395 Ph: 760-241-8000 Ext. 8586 2 Primary Care Physician Building 12276 Hesperia Road Victorville, CA 92395 (760) 241-8000 3 Carriage Square/Industrial Clinic Physical Therapy & Rehabilitaion Services 12401 Hesperia Road, #9 Victorville, CA 92395 Ph: (760) 245-2474

DESERT VALLEY MEDICAL GROUP

4 Main Street Medical Center 17450 Main Street Hesperia, CA 92345 (760) 241-8000 5 Adelanto Office Family Practice & Industrial Medicine 11499 Bartlett Avenue Adelanto, CA 92301 (760) 246-8000 6 Senior Wellness Center 19181 Town Center Dr. Apple Valley, CA 92308 (760) 961-8363 7 Hesperia Clinic 14214 Main Street Hesperia, CA 92345 (760) 244-5566

PAGE 10

SEPTEMBER/OCTOBER 2012

Are You About to Buy an REO Money Pit?

[ ]

5 Things to Look at Before Making a Decision If the property has a septic system, you should definitely have it looked at and certified first before you buy it.

When properties are distressed, there is a very good chance the septic system was neglected.

An inspection might run around $500.00. If it has been determined the system is unsatisfactory, a total septic system replacement including permits and leach field replacement could run between $5,000 - $10,000.

By Michael Bandas

President and Operations Manager, Alison Service Co.

B

uying an REO (Real Estate Owned) or foreclosed bank owned home can be a challenge when faced with potential repair issues. Often times, banks are not willing to agree to any reports or repairs a buyer might request. They are more likely to sell the property “as is”. This leaves the potential buyer with a dilemma. Should I buy?

Here are 5 things you should look at closely before making a decision. These items bear the most cost for repair and are the most difficult to visually assess.

1. Septic and Sewer

Sewer systems tend to have less repair cost exposure than septic. For a septic system, the main line to the street could have root damage or a broken pipe. This repair is generally in the $1,500.00 range to repair.

2. Rot and Termite Damage

This is an area where an inspection would be highly recommended. There are some preliminary visual notes you can make before spending money on inspection costs.

Hidden wood rot mostly occurs from water damage. The most common areas would be in the trusses and rafters in the attic or in walls around doors and windows. When looking at the roof from outside, sometimes you might see a dip in the plane of the roof line. This could indicate structural or roof sheeting failure.

Inside walls are a bit more difficult to visually determine damage. If you happen to see a brown sand like substance around a window sill, doorway or along the base molding, there is a high probability termites are present. Cost for repairs of damaged or affected areas could range from minimal costs to tens of thousands.

3. Plumbing

One of the biggest issues that could result in unexpectedly high plumbing

repair costs is under slab copper water lines. In the event there has been an underslab leak, not only does the concrete need to be broken up to repair the water line, but there could be erosion enough to make a sink hole, causing foundation damage.

If it is determined that the structure has an under-slab water system, it wouldn’t be a bad idea to have a leak detection company validate that the system is free of leaks at a cost of around $400.00. An average cost to replace the under slab copper water lines with overhead copper water lines could be $5,000 or more.

4. Slab and Foundation Cracks

Often times it is impossible to be able to make a visual inspection of the slab and foundation because of existing floor covering, but there are some other ways to see potential issues.

Look at the exterior for cracks in the stucco. Cracks are common but if you see severe cracking, this may need further attention.

From the inside of the home, look at the cracks in the drywall and out of square openings. When slabs crack and separate it could be severe enough to distort the walls and openings of doors and windows.

One other area to inspect is the floor covering. Wood flooring and ceramic tile could show indications of slab issues by cracks or separation. If there is a continuous superficial crack, you probably have a slab crack. The necessary repairs could only be to patch a slab crack for

These items bear the most cost for repair and are the most difficult to visually assess.

floor replacement or demo and framing to square walls and openings.

5. Age

This is a very important topic. Older home have issues related to the era they were constructed. If you’re looking at a home built post 1980, you are clear from any hazardous materials used in the construction.

Homes built before 1980 have a couple of points to consider.

Asbestos was used in construction materials much less in 1975 to 1980. Prior to 1975, you can find asbestos in flooring, vents, insulation, drywall, popcorn ceilings and roofing products. Lead paint was used around the same time asbestos was used.

Both of these materials need professional removal. The costs are staggering. As much as $200 to $400 per hour for removal of asbestos, and $15 per square foot or more for lead paint removal.

If you are uncertain about lead paint presence, you can buy a test kit for about $15 or pay an inspector a few hundred dollars for the test and results.

Good Luck and Let the Buyer Beware! n

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PAGE 11

Housing Exposed Timing is Everything

by Kim Magana, Chief Investment Officer, Marathon Capital Management

O

f the several asset classes I advice, analyze and recommend, single family houses can be the most rewarding and daunting

investment.

It is very important to acknowledge this seemingly docile investment has gone through some tremendous bull markets and of course, severe give backs (bear markets) in the last 100 years - especially in high beta markets such as California, New York, Florida and recently Nevada.

This cyclical nature of housing will continue going forward.

What is especially amazing is that the average annual return has been only 3.6% over the long term (barely outpacing inflation) versus the S&P 500 stock index 9.6% average per year. Some markets such as the High Desert are at 0% annual over the last 20 years plus, though the price moves in between have been truly mind boggling.

Therefore in order to protect and build wealth in this investment vehicle, timing is very important along with keeping emotion and greed in check. But hold on…

Pundits and real estate promoters will say you cannot time home prices, there is no crystal ball and home prices always go up.

We learned from 2006 to the present that this is not true. National home prices dropped 35% and High desert prices down a whopping 70-80%. If you were fortunate to have sold near the highs and enter

the market now at the lows, the change in your household balance sheet to the upside is life altering.

A home is a unique investment because you get to live in, raise a family in, enjoy and sometimes fall in love with your sticks, concrete and dirt. The big plus is you can sell your prime residence tax free up to a $500,000 profit if you lived their two out of the last five years. Other real estate holdings can be sold with a 15% Federal capital gain tax if held more than one year.

Still, the timing is tricky. How many CPAs or advisors informed their clients they should get out of the real estate market in 2005? That is where the emotional peril comes in, making it very difficult to sell during bubble tops.

Think back to the housing boom years of 2004 through 2006. Everyone was jumping on the band wagon: real estate promoters, new licensed agents, banks, cities stepping up their building department staff and raising impact fees, mortgage brokers gone wild, wall street and their securitization of mortgage loans, speculators with their liar loans, and neighbors ATM-ing their house for materialistic fantasies. Then there were the builders setting record highs in new home sales (see chart) and pouring unsustainable supply into the market.

It was one big party and no one wanted to leave. This is the greed part, making it almost impossible to take your once-ina-lifetime tax free profits. And of course you were told by the “experts” that houses only go up in value - an absolute myth.

I was a lone wolf in the wilderness as I sold all my real estate holdings and tried to usher family members and clients out of this feeding frenzy created by the crowds of mass delusions.

As we enter the seventh year of this brutal bear market we see the carnage left behind: a recession, foreclosures, short sales, and people who lost homes that multiple lenders actually owned, FDIC bank closures, many financial institution bankruptcies, record low new home sales (see chart), municipalities suffering and government institutions Fannie Mae and Freddie Mac on taxpayer life support.

By now, crowds have left or been carried out of the housing market, and home prices have reverted to the mean, and in some cases way below replacement cost,

allowing single family homes to be the most affordable they’ve been in a long time, especially with historically low mortgage rates.

This painful give back and correction that has been endured will put the bear into hibernation so housing prices can bottom out and begin a slow trend higher as pent up demand and new household formation absorb supply.

In the fullness of time there will be another housing speculative fervor; therefore, make sure your advisers can help you recognize a bubble and navigate “the largest investment you will ever make” – A House. n Kim Magena can be reached at klmtimer@gmail.com

Bond Bubble What You Don’t See Coming

By Jose Palafox Managing Member of Starfox Financial Services, LLC

O

ne of many things an advisor should do for their clients is to look for risks they don’t see coming.

In 2005 we started telling our clients and anyone who would listen, to sell their real estate holdings unless they planned on holding it for the next 30 years. Some listened and some didn’t, as at the time the now very visible bubble in easy mortgages and over inflated values did not seem to have an end in sight.

Contrary to all popular opinion, I sold my own house in the summer of 2005. I rebought 3 ½ years later at half the price. Why do I bring this up? Is there another supposed safe investment that I believe is soon to burst? The answer is yes.

The investment I am talking about has had a very good run - up more than 50% in value since spring of 2009, plus a yield as high as 16% and the now low 5.8%.

You can probably guess from the numbers that I am talking about High Yield Bonds, otherwise known as junk bonds.

Droves of individual investors and institutions managing pension and foundation money have been flocking to High Yield in search of better, safer returns without the volatility of the stock market. It is this insatiable appetite that has raised the red flag. $30 billion have poured into junk bonds in the month of August already. High Yield issuers are taking advantage by filling the demand. In other words, investors are buying everything that is issued in hopes that the payout and increase in price will continue.

In a world of historically low rates, people are willing to ignore the risks and bet that the great returns will continue. But you ignore the facts at your own peril.

Bonds in general have done well because interest rates have come down significantly over the last few years. Bond prices rise when interest rate go down and fall when interest rates go up. The Fed has promised to keep Rates low until 2014. This has lulled many into the rate trap. That does not mean that investors (the Market) and economic conditions will not push rates higher on the long end sooner than 2014.

Already recently we have seen Treasury yield start to move up. No one can predict exactly when rates will normalize and move back up, but the consequences could be devastating to investors who thought they were safe by avoiding the stock market.

In our firm we have already begun taking profits from our junk bond position and redistributing them into higher grade and shorter duration bonds. These will be affected far less, but won’t be immune when rates rise.

In our practice I see many new clients that come in with their portfolios almost all

in the bond market. When I ask why their answer is, “Well I didn’t want to lose money in the stock market and my broker said this was safer and even showed me a three year return with stellar performance.” This has played out to be true, but the key is that it is in the past.

Valuations have skyrocketed and the market easily is digesting the newly issued bonds. I also mention that during the same time frame the stock market has more than doubled, while almost everyone continues to bash the results.

As in 2005 when money kept pouring into real estate, today money is pouring into bonds, and more specifically High Yield bonds. I say buyer beware. The signals are there of a coming top, and the bursting bubble takes no prisoners. n Jose Palafox can be reached at starfoxfinancial@gmail.com.

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SEPTEMBER/OCTOBER 2012

Audio Visual Systems for the Office It’s time to bring presentations to the next level

By Gabe Lovato

I

Owner, Apple Valley Communications

have been in several businesses recently and the first thing that seems to come to mind is how an Audio/Visual system would be of benefit to them.

Just the other day, I was at my real estate agent’s office and she was showing my wife and me homes on a small computer monitor in her conference room.

The three of us sat there, huddled around her monitor, struggling to see what we needed to see.

A simple solution to this problem would be to connect the computer to a large television or projector, and we would have all been able to see the images from the comfort of our own chair at the conference table.

Audio/Visual systems can have multiple uses, and many businesses, as well as home owners, overlook the potential benefit of installing one of these systems.

Systems can be surprisingly simple and affordable for the small office.

There are many ways to utilize an A/V system. Various types of automated systems can be set up in businesses, homes or schools, and allow a person to control any number of things remotely, including a security system, camera system, lighting, electronic screens and sound systems, entry gates, even window coverings (and Jacuzzis!) without ever leaving the com-

fort of their desk or favorite recliner.

Conference rooms and meeting rooms are often underutilized because of a lack of technology. Installing an A/V system in your place of business can help raise your professionalism to a whole new level, impressing customers and making dull presentations a thing of the past.

The two presentation options are projectors, and televisions. Projectors hang from or are concealed in the ceiling.

Retractable electronic screens are also hidden in the ceiling, so there is nothing permanently on the walls, leaving room for white boards or even decorations. It is optimal to plan these systems into the building design, but most offices can be retrofitted with a projector system.

The other, less expensive option, is to mount a flat screen television on the wall.

This is a simple technology to add to a conference room or office.

Today’s systems can also integrate the technology most of us are becoming reli-

ant on, like our smart phones and tablets.

There are apps you can use from your iPad or iPhone to control lights, and turn things on and off. So for instance, if you are giving a presentation in your conference room, you can dim the lights and close the window blinds from your smart phone.

Integrating a voice lift system into an A/V system can help a speaker deliver a presentation across a large conference room. A voice lift is not so overbearing as a microphone, bringing the voice up by about ten decibels, allowing the speaker to be heard without having to strain or raise the voice.

There are many options available for homes and offices, when looking at A/V and automated systems. Hiring a licensed, qualified installer with a good reputation will help in the success of your installation. Service from an established company will ensure reliable service for maintenance and upgrades in the future. n

Affordable Care Act Dates to Know

Until things change....here are the dates you need to be aware of as the Affordable Care Act is currently moving forward.

Provided by Sharon Page of The HR Edge January 1, 2013: • Employers who file less than 250 W-2s per year, are currently exempt from the requirement to disclose the value of health coverage on the 2012 W-2s but there is no indication on when this ex-

emption will end.

• Contributions to Flexible Spending Accounts (FSA) will be capped at $2, 500 per year.

March 2, 2013: • Covered employers must provide written notice to employees upon hire about state health insurance exchange information,

•

•

•

•

eligibility for tax credit or cost-sharing reduction, and possible loss of employer contribution.

January 1, 2014: Maximum allowable waiting period will be 90 days (although this rule is currently under rview by the IRS).

Employers with less than 25 employees that offer health care coverage to employees will be eligible for an increased tax credit of up to 50% of premiums paid.

(This credit first became available in 2010 with a maximum credit of 35% of premiums paid).

Employers with 50 or more employees will be required to provide health care coverage to full-time employees (30 or more hours per week), or pay a penalty (“play or pay” provision).

Employers will be required to report the following information to the government annually: name of each employee and dependents covered; number of full-time employees; length of waiting period;

monthly premium; employer share of cost; and actuarial value of lowest-cost option. A summary report will also be required to be provided to employees by January 31 of each year.

• Individuals not provided health insurance by their employers will be eligible to purchase health insurance through Exchanges established in each state. Under the individual mandate, individuals will be required to obtain health insurance coverage or pay a penalty to the IRS. • Employers with less than 100 employees will be eligible to purchase health insurance from the state Exchanges.

January 1, 2016: • The tax incentive for small business is set to expire.

• January 1, 2017: Employers with 100 or more employees will be eligible to purchase health insurance from the state Exchanges.

• January 1, 2018: The “Cadillac” tax on high-cost benefits will take effect. n

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PAGE 13

Winds of Change Workers’ Comp Reform is Stirring

By Mike Nutter, CORS

ISU Insurance Services, ARMAC Agency Sales ManagerAccount Executive

H

aving had the privilege of spending a lot of quality time with my late grandfather Walter while growing up, it comes as no surprise to those who know me well that his incessant joy of whistling has also become my own.

My Papou was master of the trill. He had the ability to hold a reverberating note for what seemed like an eternity - a rite of passage into warble wizardry, I am sure. To this day, I can still imagine him blowing his favorite tune, The Platters, Twilight Time, while he worked around the house or in the yard. It seemed as though he whistled more than he spoke - and that was just fine by me as I’ve yet to find anyone that can whistle as beautifully as he could.

In the opening to 1990’s power ballad, Winds of Change, German vocalist Klaus Meine also whistles a beautiful tune, accompanied by a riff played by guitarist Matthias Jabs, which provides a stark contrast to the song’s serene beginning.

The carefully chosen lyrics celebrate Glasnost in the USSR and the movement towards increased transparency at the end of the Cold War era. This compelling piece goes on to capture the listener’s attention and express, that which is here today will be gone tomorrow, only to be replaced by something different, for better or for worse.

I’m sure by now you’re probably wondering what whistling, riffs and the Platters have to do with insurance and risk management. Well, not much, actually. However, the winds of change don’t just pertain to great 90’s music. They’re blowing again in the form of a highly anticipated and hotly contested push for workers’ compensation reform.

This time, it will be different indeed as there will be no charismatic Hollywood hero to save the day - he won’t “be back”.

[ ]

But what we will find in the amendments billion as a result of a more efficient process to SB 863 are 170 pages of mind numbof cost containment. ing insurance and claim jargon that focus But do the numbers tell a different story? largely on permanent disability benefits and According to the Workers’ Compensation a revamping of the workers’ compensation Insurance Rating Bureau of California medical lien process.

(WCIRB) - a quasiAdditional changes government actuarial Regardless of the long term in the proposal and statistical agency, results, it is unlikely that revolve around mediprimarily responsible cal providers and the for the acquisition of the California employers inefficiencies in the loss experience of rated will benefit even if additional payment system such employers across the savings are found. as duplicate payments state for the purpose of for hardware used in experience modification spinal surgeries and the use of ambulatory promulgation – the numbers don’t add up; surgery centers. There is also the suggestion at least not in their proposed form. After to move to a “resource-base relative value reviewing the proposed benefit changes and scale for physicians”, according to a report both the initial and long term impact of the written by the award winning Workers’ reform, the WCIRB estimates that the bill Comp Executive Newsletter. would increase costs initially by $860 milDriven by discussions between two lion, while at the same time imposing crugroups, The California Labor Federation cial cost containment measures that would and a handful of large, self-insured employyield an estimated savings of $1 billion, ers, the idea of reform dates back to October providing a total net savings of under $200 2011 when the initial goal was hatched – to million annually. provide additional permanent disability benRegardless of the long term results, it efits to injured workers, while at the same is unlikely that California employers will time affording big business a savings on benefit even if additional savings are found. workers’ compensation premiums.

The real problem, in my humble opinion, Championed by State Senator Kevin lies in the motivating factors –those being DeLeon (D-Los Angeles) and cofinancial, of course – for all stakeholders. authored by Assemblyman Jose Solorio If one closely examines all of the numer(D-Anaheim), the bill has been identified as ous beneficiaries of the workers’ compensa“the likely vehicle for the reform proposal if tion insurance industry –physicians, attorone was ever introduced.” neys, big pharma, fraudulent & legitimate While one could argue that the current applicants, third party administrators, insurstate of affairs of the California workance companies, brokers, agents, etc. – it is ers’ compensation market is bleak at best, hard to believe that reform is even possible many, including The California Applicants’ Attorneys Association, are rallying the troops in an effort to quash the attempt at reform, citing lack of ample time to review the bill as a reason for eliminating the reform effort altogether.

Additionally, The California Society of Industrial Medicine and Surgery is formulating an attempt to put a kibosh on the bill, which begs the question: what exactly, do these stakeholders have to lose?

To suggest that the system in its current form is absent of flaws would be a gross misrepresentation of the truth. Reform is needed without a doubt, but is this the type of reform that employers are hoping for?

With a proposed increase of $700 million in permanent disability payments to injured workers, it would appear at first glance that this bill would further lend itself to the financial crippling of businesses in the state of California. However the authors of the bill suggest that this increase would be offset by a substantial savings of nearly $1.3

given the high probability of lobbyists jockeying for position in an effort to funnel the flow of cash to their client’s doorstep.

If it is true reform that we seek, we must first successfully identify each and every supporting industry that derives an income from the system and then further examine the ways in which these various contributors are compensated for their efforts. Is the level of contribution commensurate to compensation? If controls are placed on the financial incentives, the problems of a severely fractured system will correct themselves.

While the State of California continues to deal with their fair share of workers’ compensation woes, Michigan is realizing the fruits of their labor with workers’ compensation rates dropping for the second year in a row. With back-to-back decreases of 7% respectively, the Michigan Department of Licensing and Regulatory Affairs (LARA), cites well-developed safety programs and a medical cost-containment fee schedule as the driving force behind their success.

If there is one constant in the $12 billion workers’ compensation industry, that constant is change. The insurance industry is one that is in a constant state of flux.

Change is the norm and the absence of change is indicative of future problems on all fronts. The real question with regard to workers’ compensation reform is whether or not it will afford any financial relief for California employers, which would certainly be music to the ears.

At any rate, it will be sure to strike a chord. Stay tuned! n

PAGE 14

SEPTEMBER/OCTOBER 2012

Taxes, Election, and More Taxes Details of Tax Impacts on Investments

By Jason Lamoreaux

Broker/President Coldwell Banker Commercial Real Estate Solutions

W

ith the political season in full swing and each political candidate positioning for their respective office, Americans must sift through talking points and rhetoric to fully understand the issues at hand. With taxation and health care at the forefront of discussions, the stakes are considerable for real estate investors and owners alike.

In February of 2012, Congressional aides coined the term “Taxmageddon”, referring to December 31, 2012, the date of expected implementation of federal government spending reductions, and the expiration of a large number of tax cuts enacted under President George W. Bush, and extended by President Barak Obama.

Additionally, new taxes associated with President Obama’s Affordable Care Act, commonly referred to Obama Care, takes effect January 1, 2013.

The commonly referred to Bush Tax Cuts, actually known as Economic Growth

and Tax Relief Reconciliation Act of 2001 and Jobs and Growth Tax Relief Reconciliation Act of 2003, addressed many issues from ordinary income and alternative minimum tax, to capital gains.

Front and center for real estate is capital gains.

Currently, the maximum federal rate on long-term capital gains and dividends is only 15%. However, beginning next year, the maximum rate on long-term capital gains is scheduled to increase to 20%, with a few exceptions such as assets acquired after December 31, 2000 and held for over five years, which will be taxed at 18%.

Income from dividends will skyrocket to 39.6%. The expiration of the Bush era tax cuts will not only affect top income brackets, but all tax brackets.

For taxpayers in the lowest two tax brackets of 10% and 15%, the current tax rate of 0% will jump to 10% on long-term gains, or 8% for assets acquired after December 31, 2000. Additionally, income from dividends will increase from 0% for the lowest two tax brackets to 15% and 28%. The end result: taxes on dividends and long-term capital gains will go up for all taxpayers.

On another front, Obama Care, which was deemed constitutional by the Supreme Court in June, includes tax changes that will take effect January 1, 2012. Among the many sweeping changes that will impact taxpayers, a new 3.8% tax on investment income will be implemented to fund President Obama’s health care and Medicare overhaul plans.

The new tax was introduced just hours before the final debate on the massive

health care legislation began. The legislation was enacted March 23, 2010, more than a year after the health care debate began. Presented in the last hours of a year long debate, the tax was a solution after Congress was unable to agree on changes to current law that were sufficient to pay for the changes to the Medicare program and subsidies to individuals and business owners.

The new tax is estimated to raise more than $210 billion over the next ten years, representing more than half of the total expenditures in the new health care reform package.

A common misconception during the onset of Obama Care was the new tax would apply to all real estate transactions, from dollar one, whether there was a gain or not. While the new tax is somewhat complicated, it applies to interest income, dividends, rents and gains on the sale of an asset. The tax will not apply to the total sales price of the real estate transaction as many originally believed. To complicate it further, the new tax has an income threshold beginning at $200,000 adjusted gross income (AGI) for an individual, or $250,000 AGI for couples filing a joint return. The new tax applies to the lesser of Investment income in excess of AGI over the thresholds previously mentioned.

Courtesy of the National Association of Realtors, at the bottom of the page is an example on how the new tax may impact a taxpayer.

The table below only represents the tax due under the new Affordable Care Act, and does not represent ordinary income tax and capital gain taxes yet to be applied from the State of California and the federal government. Depending on deductions, additional federal and state taxes could be $489,915, for a total tax bill of $543,579, or an effective tax rate of 34%.

For California residents, total capital gains could be 33.1% with State taxes at 9.3%, Federal at 20%, and the Obama Care tax of 3.8%.

A second new tax, dedicated to Medicare funding, is imposed on the socalled “earned” income of higher income individuals. The earned income tax is at a lower rate of 0.9%, and similar to the 3.8% tax mentioned in this article, the additional tax is based on AGI of $200,000 for an individual, and $250,000 for a joint return.

How will this affect the real estate market? For investors holding real estate investments, the potential of increased capital gains tax in the future could overshadow appreciation considerably, extending holding periods to break even against current net profits for several years.

Investors who purchased assets prior to the recession with profits to protect may consider liquidating late this year. Despite the decline in investment values over the last four years, many investors may follow this liquidation strategy, locking in their profits rather than waiting for investments to appreciate sufficiently to offset the capital gains tax increase.

Another alternative for investors is the long dormant 1031 tax deferred exchange which allows investors to defer taxes associated with capital gains into the acquisition of a new investment. Practically inactive since the onset of the recession, 1031 exchanges could be a vehicle for investors to combat the rise in capital gains taxes.

The hope of increased revenue with the expiration of the Bush tax cuts and the enactment of Obama Care may not materialize. With attractive tax rates in the past, many investors have chosen to realize gains and pay the related tax, avoiding tax deferral offered through a 1031 exchange.

As such, tax revenue was generated and proceeds of a sell were not restricted to the purchase of a replacement investment.

As taxes increase, investors will seek alternatives including longer holding periods and 1031 tax deferred exchange. Either strategy will not generate tax revenue or inject private capital into the economy.

With all sectors in the commercial real estate market, along with home sales, improving and in a recovery, new taxes may retard recovery and growth. The economy along with the real estate market is fragile, and the onset of additional taxation may have a prolonged effect in our recovery cycle. However, with that said, capital flows like water. As with water, capital will find an alternate path when met with an obstacle. n The preceding article does not constitute tax advise. Please contact your tax advisor for specific tax information. Jason Lamoreaux at jl@cbcdesert.com, 760-684-8000.

Get Coldwell Commercial Bankers’ MarketWatch Report at cbcdesert.com, or subscribe at info@cbcdesert.com

In 2010, Ethan inherited a four-plex investment property from his great aunt. She had used it for many years as an investment rental property in San Francisco. At the time of her death, the adjusted basis of the property was $10,000. During her period of ownership, she had taken $240,000 of depreciation deductions on it. Its fair market value was $900,000 when she died. Because there was no estate tax for 2010 and because carryover basis was in effect, Ethan’s basis in the inherited property is also $10,000. The prior depreciation allowances carry over to him, as well. He continues to use the property as an investment rental property. Ethan later sells the property for $1.2 million. He is single and reports Schedule C self-employment income of $180,000.

The Tax applies as follows:

Gain on Sale $1,190,000 ($1.2m - $10,000) Depreciation Recapture $240,000 (From great aunt) Depreciation Recapture $2,200 (Ethan - Approximate)

Total Gain $1,432,200 ($1.19m + total deprec recapture) Schedule C Income $180,000 New AGI $1,612,200 9gain + Schedule C)

Excess over $200,000 $1,412,200 Lesser Amount (Taxable) $1,412,200 (AGI excess)

Additional Tax Due under New Law $53,664 ($1,412,200 x 3.8%)

SEPTEMBER/OCTOBER 2012

PAGE 15

A Home for the Holidays Indicators Give All Green Lights to Prospective Buyers

Home Affordability Remains at Record Levels

By Gerald Rohrbacher, Agent April Love Gower, Agent

R

Team Success, Shear Realty

enters long waiting to jump into the real estate market should be jumping for joy as all the indicators point towards now being the perfect time to buy. There are several factors prompting many renters to move into the position of homeowner.

For Renters in Our Area Buying Pays Off in an Average of Two Years

Zillow, a real estate website, has a new analysis showing that a home buyer in the Victor Valley will reach what it calls the “break-even horizon,” after just one year.

The ‘break- even’ horizon compares what it would cost to buy or rent the same home in a number of U.S. markets over time using a list of factors including the down payment, mortgage and rental payments, closing costs and taxes. It also adjusts for inflation, rental

The average median home price evaluated last June and July was $117,000 for the Victor Valley. Even with the National Association of Realtors reporting home prices up by 10.1% of last year, this area will remain affordable for a long time to come.

CNN Money reported that the average closing costs on a mortgage fell by 7.4% over the past year according to Bankrate. com.

Freddie Mac also reported that the average 30 year mortgage rate is at a historically low 3.53% .

Also, buyers over 62 years of age have access to reverse mortgages which may afford them with a better lifestyle for their senior years.

Security Can Be Yours

Control does have some value.

Purchasing is a very personal choice and can have some great personal advantages over renting.

You can purchase your home and nobody can ever evict you. You can personalize your home to your lifestyle by remodeling, redecorating or landscaping.

All the choices to keep it the same or change it are yours to make.

If your goal is to be in a new home for the holiday season you should be scheduling your buyer’s consultation appointment with your Realtor as soon as possible.

The average closing days on a regular resale or a REO purchase is 38 to 45 days.

A short sale purchase is now averaging 134 days according to the Victor Valley MLS. With inventory remaining low and all the positive reasons to purchase a new home it may still take several months to find your perfect home, win in the negotiation process and proceed through the escrow period to

your move-in date.

With only 643 single family homes currently on the market in the Victor Valley buyers will be in multiple offer situations and may have to put offers in on several homes before actually getting into an escrow on one.

Reduced closing costs, lower interest rates, more affordable home prices and a slowly improving economy - no wonder buyers are more motivated than they have been in years. n April Gower of Shear Realty’s Team Success can be reached at 760-403-3178

Single Family Residence - MEDIAN SALES PRICE $350,000.00 $300,000.00 $250,000.00 $200,000.00 $150,000.00 $100,000.00 $50,000.00 $0.00

Dec-98 Mar-99 Jun-99 Sep-99 Dec-99 Mar-00 Jun-00 Sep-00 Dec-00 Mar-01 Jun-01 Sep-01 Dec-01 Mar-02 Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08

price appreciation and forecasts home values.

Zillow’s analysis shows those looking to purchase in Apple Valley will reach the break-even horizon in 1.6 years, Hesperia in 1.5 years ,Victorville in 1.4 years, and Barstow in just 1.2 years.

Got Game??

Grab your team and compete in the Longest Running Golf Tournament in the High Desert!

Open to all Businesses - members & non-members

W in a NEW Car Victorville Chamber of Commerce

Thursday October 4, 2012 Green Tree Golf Course

Registration includes: Foursome of golf with carts Breakfast, Beer & Snacks, Lunch Putting, Hole-in-One, Men & Women’s Longest Drive Contests Golf Gifts, Auction, Prizes and Trophies The Fireside Restaurant

Call DeAnna today at (760) 245-6506 to register or for information on great advertising opportunities.

PAGE 16

SEPTEMBER/OCTOBER 2012

HomeSource Makeover Under Construction

D

emolition and construction is underway at the winners of the HomeSource Lamoreaux Residential Group Makeover. Joseph and Diane Brilliant of Apple Valley have had their kitchen gutted, and flooring removed from their living room in preparation for the remodel.

Rick Hampton, the owner of ServPro, is providing all of the demolition and construction services for the kitchen’s cabinetry, appliances, flooring, electrical, plumbing and lighting. “This is a fun project, and a great opportunity for the community to see what we do,” said Hampton, who is currently deployed in Louisiana helping with flood damage. “We can bring in contractors and manage the demolition and reconstruction of a home with trusted local professionals.”

Donald Tatera of Decorating Den Interiors is providing design consultation and window coverings. Working with the Brilliants, he is helping them select granite, tile, carpet, paint and window treatment colors and patterns.

Additional products and services are being provided by Sparkle Carpet Care, Intricate Tile & Design, Carpet Club, and Christopher Homes.

Media partners include High Desert Lifestyles Magazine, the Daily Press, and the El Dorado Broadcast stations. A before and after photo spread will be featured in High Desert Lifestyles Magazine this November. n

Follow the remodel on facebook at http://www.facebook.com/HighDesertLifestyles

Apple Valley Rotary and Southwest Gas Help Homeless Shelter

T

he Apple Valley Rotary Club fired up a new gas barbecue this August, at Victorville’s High Desert Homeless Shelter. The gas barbecue, donated and installed by Southwest Gas, was used to grill hotdogs and

hamburgers for the homeless shelter at the club’s monthly barbecue that feeds between 40 and 60 people, of whom up to half are children.

Niru Vangala, former Apple Valley Rotary president, started the barbecue

as a Rotary event in 2000. The club brings all the food, cooks and serves the shelter residents. The Apple Valley Rotary club has also donated an industrial stove and bunk beds to the shelter over the years.

A few club members are the core of the team for this project. “Barbecue Bill (Bill Blythe) is the brains behind this operation,” said current president, Donald

Tatera. “Doc Yoc (Donald Yochem) always shows up. Bill Patterson is also a faithful regular for the barbecue.”

The Apple Valley Rotary Club Homeless Shelter Barbecue is held the last Sunday of each month. For more information on High Desert Rotary Clubs, go to RotaryinHD.com. n

Bill Patterson and Tom Roberts run the kitchen at the Apple Valley Rotary’s monthly barbecue at Victorville’s High Desert Homeless Shelter.

Desert Community Bank supporting the community at Rockin’ the Desert Mud Run Apple Valley Rotary President, Donald Tatera, and former Apple Valley Rotary President Niru Vangala at the August homeless shelter barbecue.

SEPTEMBER/OCTOBER 2012

HDBJ

PAGE 17

BUSINESS Calendar

September 11th 9:00 am - 1:30 pm

September 21st 6:00 pm – 9:00 pm

Small Business Seminar

Get the tax facts and reduce your liability!

Representatives from EDD discuss factors that make a worker an employee, basics of statutory employment, independent contractor reporting requirements and how to get help.

No charge to attend.www.vvchamber.com High Desert Small Business Development Center 15490 Civic Drive, Suite 102 Victorville 760-951-1592 www.iesmallbusiness.com

September 12th 12:00 pm – 2:00 pm

Transportation Corridor Luncheon

Speakers from the Ports of Los Angeles and Long Beach as well as BNSF Railway.

Hampton Inn & Suites in Barstow 2710 Lenwood Road Barstow, CA 92311 Barstow Chamber of Commerce 760.256.8617

September 13th 5:00 pm – 7:00 pm

Kemper Campbell Ranch Mixer Hors d’oeuvres, beverages, networking and raffles at the annual Victorville Chamber members only mixer at the historic Kemper Campbell Family Ranch. No cost, reservations required.

RSVP: dgorgei@vvchamber.com

September 19th October 17th 10:00 am - 12:00 pm

Business Excellence Training Webinar

The Workforce Investment Board’s program includes improving quality of services, ensuring operational efficiencies and increasing customer-centered care. Focus of this training will be Basic Data Analysis.

Register at www.business1.eventbrite.com

September 19th 9:00 am – 11:00 am

City of Victorville 50th Anniversary Celebration

Celebrating Victorville’s 50th Anniversary with formal dinner, cocktails, entertainment and a historical film on the history of the city. $50 per person.

Hilton Garden Inn 12603 Mariposa Road, Victorville 760-955-1681 or 50th@ci.victorville.ca.us

September 26th 1:00 pm – 3:00 pm

Small Business Training Seminar: How to Start Your Small Business

Presented by an SBDC Business Consultant.

Topics include Being and Entrepreneur, Business Planning, Small Business Financing, Legal Forms of Organization, Licensing and Permits, and Services Provided by the IESBDC. No Cost.

High Desert Small Business Development Center Hesperia Branch Library Conference Room 9650 7th Avenue, Hesperia 760-951-1592, www.iesmallbusiness.com

September 27th 6:00 pm

Women for Women Networking

A place for professional women to communicate and network with likeminded, goal oriented business women. Brought to you by Capstone Consulting Group.

El Pescador 14366 Atstar Street, Victorville, CA 92395 Linda Jacobson 760.243.2551 or Linda@ccgemail.us

September 19th 10:00 am- 12:00 pm

Webinar: Basic Data Analysis

Hosted by the County of San Bernardino Workforce Investment Board. Each class is designed to be applicable and relevant to small businesses. Free.

Register at www.interdata-eorg.eventbrite.com

7th Annual Ryan Cambridge Memorial Golf Classic Benefitting the Sunset Hills Children’s Foundation. $200 individual golfer.

Apple Valley Golf Course Highway 18 & Rancherias Road Apple Valley Jennifer@SunsetHills.cc

October 17th 10:00 am-12:00pm

Webinar: Intermediate Data Analysis

Hosted by the County of San Bernardino Workforce Investment Board. Each class is designed to be applicable and relevant to small businesses. Free.

Register at www.interdata-eorg.eventbrite.com

October 18th 7:30 am Registration

High Desert Opportunity

Real estate mogul, entrepreneur, author and reality TV Shark Tank investor/shark Barbara Corcoran will serve as the Keynote Speaker.

Exhibit hall, HD Theater program, exhibits and booths. $75 ticket. www.HighDesertOpportunity.com.

High Desert Event Center at the San Bernardino County Fairgrounds 14800 7th Street, Victorville 760.245.7600

October 21st 5:30 pm - 10:00 pm

High Desert Hispanic Chamber’s 21st Annual Awards Banquet Join HDHCC’s Old Hollywood Glam themed awards banquet. Dinner & entertainment, recognition and achievement awards.

Tickets $35 pre-sale. Table sponsorships available.

Courtyard Marriott, Hesperia 411 760-241-6661

October 25th 6:00 pm

Women for Women Networking

A place for professional women to communicate and network with likeminded, goal oriented business women. Brought to you by Capstone Consulting Group.

El Pescador 14366 Atstar Street Victorville, CA 92395 Linda Jacobson 760.243.2551 Linda@ccgemail.us

October 25th 8:30 am - 10:00 am

Morning Workshop Conflict Resolution

EDD Workforce Services Office. No cost.

Pre-registration required 15419 Cholame Road Victorville To register contact: Kristine Nix at Kristine.Nix@edd.ca.gov

To have your event added to our Calendar, please email paisley@highdesertbusinessjournal.com

Hesperia. Zoned for Business.

October 4th 8:30 am

35th Annual Roadrunner Golf Classic

Held by the Victorville Chamber of Commerce. Now soliciting for raffle prizes.

Sponsorships available. $95 individual player, $375 foursome.

Green Tree Golf Course 14144 Green Tree Blvd. Victorville DeAnna Gorgei at 760.245.6506

Hesperia Leadership Academy

Learn how to improve employee productivity by taking a closer look at different personalities, communication techniques and a 4-step coaching process. Seating is limited!

760.244.2135 or www.cityofhesperia.us

October 12th 6:30 am - 2:00 pm Shotgun start at 8:00 am.

October 10th 9:00 am – 11:00 am

Doing Business with the Government

Hosted by IESBDC. Overview of how to sell your products and services to Federal, State and Local government. Selling to Federal Government, State & Local Contracting, Basic Contract Types, Small Business Resources, Solicitation Preparation, M/W/D VBE Certification and Effective Marketing Methods. Presented by Karla Gonzalez. No cost. Registration required.

Hesperia Branch Library Conference Room 760-951-1592, www.iesmallbusiness.com

Hesperia Enterprise Zone programs could:  lower your state tax bill  decrease personnel costs  reduce machinery and computer expenses ... and more!

Contact us about free workshops!

BRINGING JOY TO

Doing Business Locally Supporting independent businesses in the High Desert VISIT US AT

www.relylocal.com

Tari Blalock 760.449.0140 tariblalock@relylocal.com Alyssa Penman 760.246.5400 alyssapenman@relylocal.com

For more information: www.cityofhesperia.us/EZ EZ@cityofhesperia.us  760/947-1906

PAGE 18

HDBJ

SEPTEMBER/OCTOBER 2012

Calendar OF Events October 31 of this year. Come join in the honoring of her memory at the Dale Evans Centennial Celebration!

Events hosted at: Sunset Hills Memorial Park and Roy Rogers Double R Bar Ranch For more information 760.985.1918

September 15th, 16th All Day

Hesperia Days

Free outdoor music festival both days.

Saturday’s activities will start with the annual 5K and parade down Main Street and end with a spectacular fireworks display at the Lake.

Hesperia Lake 7500 Arrowhead Lake Rd, Hesperia For more information 760.244.5488

October 6th, 13th, 20th, 27th 7:00 pm

Boo at the Zoo

Myths, Legends and SPOOKY Tails!

After the tour, enjoy a magical live animal show. Kids wear your costumes. $12.00 adults $8.00 kids 19038 Willow Street, Hesperia For more information 760.948.9430 www.thehesperiazoo.com

September 16th 10:00 am

6th Annual Happy Trails Breakfast Club

Enjoy a breakfast buffet, celebrity guest, Roy Rogers feature film and more. $20 per person. Reservations required Lucerne Valley Lions Club Lucerne Valley For more information 760-240-3330

October 6th 12:00 pm – All day

42ND Annual Big Bear Lake Oktoberfest

Oktoberfest celebrates 42 years of German style family fun. Rated Southern CA’s No.1 Oktoberfest, authentic German entertainment, food and fun.

Big Bear Lake Convention Center, 42900 Big Bear Blvd., Big Bear Lake For more information 909.585.3000

September 26th 9:00 am – 2:00 pm

High Desert Regional Job Fair

Free. Hosted by the County of San Bernardino Workforce Investment Board.

Bring your resume. Dress professionally.

San Bernardino County Fairgrounds Building 2 14800 Seventh Street, Victorville

October 13th 10:00 am - 1:00 pm

4th Annual Trek Women Breast Cancer Awareness Ride

September 29th 30th All Day

25 & 10 Mile Courses, Helmets are Mandatory. $25.

Victorville Cycles 12408 Hesperia Rd Ste. 4, Victorville For more information 760.245.5900

Dale Evans Centennial Celebration

The Town of Apple Valley’s beloved Dale Evans would be 100 years old on

October 13th 9:00 am - All day

Lake Arrowhead For more information 909.337.2533

Vendors, food, airplane exhibitions and family fun!

Apple Valley Airport, 13 Corwin Road, Apple Valley For more information call 760.240.7000 ext.7071

October 20th 7:00 am-4:00 pm

Apple Valley Air Show

October 13th 10:00 am - 5:00 pm

Equine Festival of Apple Valley A free day of demos, lectures, clinics, food and shopping.

Horseman’s Center, 24320 Hwy. 18, Apple Valley 760 953 4546

October 13th 10:00 am

Pine Cone Festival

Celebrate the San Bernardino National Forest, home to the 2 biggest pine cones in the world. Lots of arts, crafts, food and local entertainment too.

Twin Peaks Rotary Centennial Park 677 Grandview, Twin Peaks For more information 909.337.7275

October 14th 10:00 am – All day

VW Jamboree - Oktoberfest

Event will take place in Lake Arrowhead CA and occupy the entire Lake Arrowhead Village Lake Arrowhead Village 28200 State Hwy. 189

2012 MudJam 5K Mud Run

Benefiting the Hesperia Unified School Districts instrumental music programs.

Mud, Music, Awards, Costume Contests, Food, Fun and so much more!

Cedar Middle School 13565 Cedar Street, Hesperia For more information 760.780.7847

October 20th All Day

11th Annual Apple Valley Rotary Chili Cook Off

International Chili Society event! Taste chile, chile verde and salsa. Fundraiser for Literacy Program. Fun family day with food vendors, music, car show, bounce house and kids play area. $5 tasting fee.

Lenny Brewster Park 21024, Apple Valley For more information 760.403-5148 www.HappyTrailsChiliCookoff.com

October 27th 12:00 pm- 5:00 pm

Hesperia Health & Safety Fair

Check out the health & safety booths, children’s costume parade, blood drive, fire & police equipment on display, free face painting and much more!

Civic Park Plaza 15833 Smoke Tree Street, Hesperia For more information 760.947.1549 www.cityofhesperia.us

High Desert Event Center Home of the San Bernardino County Fair

Events Commercial and Private

BOOK YOUR CORPORATE HOLIDAY PARTY TODAY! Private Events Corporate Events Indoor and Outdoor Events Weddings Quinceaneras Galas

14800 Seventh Street Victorville, CA 92395

Meetings Trade Shows Car Shows Expos Picnics

760-951-2200 WWW.SBCFAIR.COM

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9/7/2012 4:33:44 PM

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Arts & Culture

Fiddler on the Roof

Through September 29th The Grove Theater, Upland 276 E 9th Street Upland CA 909-920-4343 www.GroveTheater.com

Concerts in the Courtyard

September 13th, 20th, 27th 5:30 pm - 7:30 pm Apple Valley Commons Courtyard Corner of Highway 18 and Dale Evans Pkwy, Apple Valley For more information call 760.240.7000 ext.7071

Spice of Life Multi-Cultural Festival

October 6th All Day Music, dance, food, vendors, arts & crafts, new model cars, custom cars and motorcycles. Fun for the whole family.

14343 Civic Drive, Victorville (760) 241-6661 or information@hdhcc.org

Art at the Aspen

October 6th & 7th 10:00 am - 4:00 pm Annual Art Show, presented by the American Association of University Women. Over 40 local artists selling original works including paintings, art glass, sculpture, photography, pottery, jewelry, and book signing. All proceeds go toward local scholarships. www.aauw-victorvalley.com Solera Aspen Clubhouse 10741 Lakeshore Drive, Apple Valley For more information 760.240.5036

October 19th, 20th, 26th, 27th, 7:30 pm October 27th, 28th, 29th, 30th, 7:30 pm November 21st, 28th, 2:30 pm Presented by Creative Arts Theater A 3 act comedy where everybody gets caught in the act!

Held at High Desert Center for the Arts 15615 8th Street Corner of 8th and “C” Streets Historic Old Town Victorville

Bell Book & Candle

October 19th – 21st and 26th – 28th Presented by Theater Arts Guild Directed by Michael Barrett Lighthearted comedy about a young witch who battles to preserve her powers when faced with the very human emotion of love.

Held at High Desert Center for the Arts 15615 8th Street Corner of 8th and “C” Streets Historic Old Town Victorville (909) 762-4732

Festival of the Arts

September 15th 10:00 am – 3:00 pm Presented by the Lewis Center. All ages all communities welcome. Art, music and fun.

Lewis Center for Educational Research Mojave River Campus 17500 Mana Road, Apple Valley For more information 760-946-5414 ext. 202

“NOISES OFF”

“13” the Musical

August: Osage County

October 12 – 21

By Tracy Letts The Grove Theater, Upland 276 E 9th Street Upland CA 909-920-4343 www.GroveTheater.com

Auditions for High Desert Musical Review

Saturday October 16th, 3:00 pm – Dancers Sunday October 17th, 2:00 pm – Singers Presented by High Desert Productions Auditions held at Dancetime Studios Information 760.243.4997 or Joey at 760.885.2083

Coming in November Presented by Creative Arts Theater Held at High Desert Center for the Arts 15615 8th Street Corner of 8th and “C” Streets Historic Old Town Victorville

To Kill a Mockingbird

November 10th, 11th, 16th, 17th, 18th Adapted by Christopher Sergel from the novel by Harper Lee Presented by Rancho Cucamonga Community Theater Buy tickets online at www.LewisFamilyPlayhouse.com

Oliver!

November 16, 17, 18, 20, 23, 24, 25 28, 30 December 1, 2 Based on Charles Dickens’ Oliver Twist Presented by Community Arts Theater Society

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Big Bear Lake Performing Arts Center 909-866-4970 or www.bigbeartheater.org

White Christmas

November 30th – December 2nd December 2nd – 9th Presented by Theater Arts Guild Written by Irving Berlin Directed by Cherie Glisson A successful song-and-dance team become romantically involved with a sister act and team up to save the failing Vermont Inn of their former commanding general.

Held at High Desert Center for the Arts 15615 8th Street Corner of 8th and “C” Streets Historic Old Town Victorville (909) 762-4732

Italian Dinner Show

September 29th 5:00 pm – 8:00 pm Presented by Snowline Players, Inc. Enjoy a homemade Italian dinner prepared by an authentic, Italian, nonna and her goombahs. Dinner will include a main course, a salad, bread, a drink, and dessert.

Audience members will get a true taste of Italy while being entertained by the kitchen staff, their servers, and maybe even some of the other audience members! $12.00 for adults and $10.00 for seniors and kids 12 and under Purchase at the door. No reservations.

The Wrightwood Community Center 1275 State Hwy 2, Wrightwood (760) 868-4966 or snowlineplayers@gmail.com

The Fantastiks

March 2, 3, 8, 9, 10 of 2013 Book and lyrics by Tom Jones Music by Harvey Schmidt Presented by Rancho Cucamonga Community Theater Buy tickets online at www.LewisFamilyPlayhouse.com

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SEPTEMBER/OCTOBER 2012

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