SCV Business Journal June 2020

Page 1

Contact: Perry Smith Business Editor Phone: 661-287-5599

S A N TA C L A R I TA VA L L E Y

BUSINESS JOURNAL BJ INSIDE SPOTLIGHTS B4 A message from the SCV

Chamber B5 SCV Chamber advocacy B5 SCV Chamber spotlight B8 VIA discusses business

advocacy B9 The List: SCV car

dealerships

NEWS & FEATURES B1 Businesses ready for

reopening B2 Getting the cameras rolling B2 Jobless claims create

challenges B3 An SCV real estate market

update

SCV BUSINESS VOICES B1 SCV Voices: Poole, Shaffery

& Koegle B3 SCV Voices: SCV Economic Development Corp. B6 SCV Voices: Audiology Associates B7 SCV Voices: SunPower by Green Convergence B10 SCV Voices: Henry Mayo

FROM THE EXPERTS B6 Paul Butler: A few thoughts

about ‘fringe benefits’ B7 From the Assessor: 2020

property tax assessments B9 SCV Econowatch B10 Ken Keller: Don’t fail to

prepare

Email: psmith@signalscv.com Mail: 26330 Diamond Place Suite 100 Santa Clarita, CA 91350 SATURDAY, MAY 30, 2020 · WWW.SIGNALSCV.COM · B1

HOW BUSINESSES ADJUST TO OPENING UP BY TAMMY MURGA Signal Staff Writer

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hairs stacked on top of tables that have been pushed far from the entrance at restaurants. Hand sanitizer dispensers strategically installed at workstations and face coverings now donned along with uniforms. This is the new normal businesses in the Santa Clarita Valley have recently or will soon apply, as California and Los Angeles County ease their lockdown restrictions that have kept millions at home and workplaces temporarily shut down in an effort to help limit the spread of COVID-19. In Old Town Newhall, restaurants and other small businesses depend on each other to thrive, with Main Street attracting visitors from in and around the SCV to shop, grab a bite and drink and enjoy a live show at a local theater. But that momentum has completely upended, leaving Old Town Newhall resembling a ghost town. Today, much of the foot traffic comes from delivery workers dropping off orders or customers picking up. Among the businesses adjusting to change is Old Town Junction, known as a sit-down, take-your-time eatery, which is thanking the community for supporting them throughout its transition. “We’re a sit-down, hang-out and enjoy your 2-hour meal kind of place and so this switch has been a really humbling experience to see how the community has switched gears to support us and allow us to keep feeding them,” said General Manager Mandy Meeks. “Realistically, that’s why you go into the restaurant business, because you love the human experience and having that little bit of connection with them taken away because of the virus is so difficult. So, it’s nice to still see people come in when they get their orders.” With dine-in options still prohibited amid the “Safer at Home” county order, the restaurant has, like many others, put away their chairs and tables to create

Maintenance crew member Berta Ortiz, left, cleans one of the customer-safety shields as, from left, Sales Manager Kabir Bahroos, Internet Director Drew Katigbak and Internet Manager Belen Gonzales prepare for customers at Frontier Toyota in Valencia. PHOTO BY DAN WATSON / THE SIGNAL a larger and more spacious area for customers to wait in line for their orders while adhering to physical distancing measures. Old Town Junction has also installed hand sanitizer stations, ordered masks for all employees that include the restaurant’s logo and is preparing protocols, such as not setting up tables and bringing silverware as needed when dine-in options are permitted. Despite ever-changing lockdown restrictions, with some regulations easing faster than others across the state and county and with Santa Clarita looking to reopen faster than other communities, Meeks said safety measures will still remain in place and businesses must be ready as more people return to work and customers begin to shop more freely. Over in the Valencia Auto Center, the car shopping experience has changed, according to Frontier Toyota General Manager Bob Corson. “Test driving alone has changed. They’re done with only one customer

and with one sales representative seated behind for everyone’s safety,” he said. And in their showrooms and sales locations, which were only recently allowed to reopen in early May, car dealerships look a little different: There are plexiglass guards between masked and gloved customers and employees, an updated layout to provide sufficient distance between all those inside the buildings and enhanced sanitizing of anything anyone frequently touches, such as doorknobs, countertops and the cars themselves. While sales have been low among several sectors, dealerships have seen an increase in their service department. “(Service) is picking up because more people are home and taking this opportunity to get their oil changed or other service needs. There’s also very important recalls that need to be addressed but often people don’t find the time,” said Corson. See REOPEN, page B10

SCV BUSINESS VOICES

REAL ESTATE IN THE COVID-19 REALITY John H. Shaffery Partner, Poole Shaffery & Koegle

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ommercial Landlords are facing unprecedented government rules, as well as tenants who can’t operate — and therefore generate income to pay their rent. Commercial properties should categorize their tenants. First are those not allowed to operate. These are primarily retailers in small centers and malls. While there have been some recent openings, only curbside pickup is allowed; and, even when regulated, small groups are allowed, their business will be reduced. Some restaurants have been generating business with their curbside pickup and delivery programs, but even the most successful have greatly reduced business with less employees and a challenge to pay rent. Malls and retail centers were already being challenged by Amazon and other providers of goods to homes. This crisis only makes more challenges for retailers. Another category are office tenants, both those essential, or now being allowed to reopen with health guidelines. During this crisis, many businesses, including larger companies, have had their staff work remotely. It is important to note that even before COVID 19 office workers and self-employed professionals were working at least part time from home. If companies can ensure their remote employees’ performance, it should be expected that they will continue to have more employees work remotely due to the significant cost savings from less office space leasing. This could result in the significant decrease in the need for commercial official space. Commercial landlords can take several steps as this crisis continues. Work with your tenants, considering any local ordinances, to make lease amendments which can work for both you and the tenant. This can include deferring rent to later in the lease term and getting an extension to the lease term. If your tenant received a PPP loan, up to 25% of that forgivable loan can go to rent, and you should work with your tenants on that program. For the longer term, you need to brace for the potential of tenants not renewing, or decreasing their space, as they find it cost effective for more employees to work remotely. You may have to provide new incentives and amenities that make a business understand the value of having their employees together, albeit safely. John Shaffery is one of the founding partners of Poole Shaffery & Koegle LLP. headquarters are located at 25350 Magic Mountain Parkway, Second Floor, in Santa Clarita. You can reach the firm by calling (661) 290-2991 and more information can be found at www.pooleshaffery.com.

EMPLOYMENT LAWS HAVE CHANGED FOR 2020

Minimize Your Risk of Exposure Today!

Call 661-290-2991 today to schedule your consultation!

Santa Clarita 25350 Magic Mountain Parkway, Second Floor | Santa Clarita, CA 91355 661-290-2991 · POOLESHAFFERY.COM

SANTA CLARITA | LOS ANGELES | VENTURA COUNTY SAN FRANCISCO | ORANGE COUNTY | SAN DIEGO


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