Canyon Country · Newhall · Saugus · Valencia · Stevenson Ranch · Castaic · Agua Dulce
SANTA CLARITA VALLEY BUSINESS JOURNAL Santa Clarita’s Only Business Publication
www.scvbj.com
$2.00 · Volume 7 · Number 11
march 2016
To the Moon and Back for Valencia Firm Page 5 ■ The Comisar Collection has had a 20 year association with Warner Bros. by providing original artifacts for exhibits. Photo from the Museum of TV website.
The Museum of Television Takes a Peek at Santa Clarita By Jana Adkins SCVBJ Editor
A
lthough only taking a preliminary look at Santa Clarita, The Museum of Television in Beverly Hills is in conversations with a See MUSEUM page 18
■ Cicoil Corporation in Valencia. Photo by Dan Watson
New Media Team Puts Control of SCV News Group Back into Local Hands
SCV Firm Reportedly Attracts $75M Investment By Jana Adkins SCVBJ Editor
T ■ Newsroom of the Santa Clarita Valley Signal. Photo by Dan Watson.
By Jana Adkins SCVBJ Editor
T
he SCVBJ welcomed new buyers on Jan. 1, the Paladin Multi-Media Group. In a stunning announcement on Dec. 15, 2015 ownership of the 97-year old Signal newspaper, ownership of this publication’s media company, came back home to Santa Clarita. The hometown and homegrown newspaper had been owned by Georgia-based Morris Multimedia group for more than three decades.
Now privately owned, the Paladin MultiMedia Group consists of Charles F. Champion, longtime business partner Gary Sproule, and former Signal Publisher Russ Briley. Of special note, the new ownership team personally prefers not to be called “owners” saying they are only stewards whose role is to ensure the continuation of the newspaper and its products for generations to come. During this sit down Q&A with the new owners, questions were plentiful and specific responses somewhat elusive – for good reason. It had only been six weeks into the ownership See PALADIN, page 20
he blockbuster movie “Star Wars: The Force Awakens” may be playing at multiple screens in theaters around the country, but its marketing materials are expertly handled behind the scenes by Vision Media Management. And, the Valencia-based firm just had a blockbuster event of its own. Private equity firm, CenterGate Capital, has just bet big on Vision, making a sizeable investment in the firm. “Today I’m so happy for our people, our employees, our Vision family, and thrilled for our clients,” said Founder Michael Alvarez. “This re-capitalization from a phenomenal partner, CenterGate Capital, has
■ From left, Vision Media Management CFO Michael McLaughlin, Chief Operating Officer Mary Nakagawa and CEO and President Michael Alvarez in the Vision Media Management conference room. Photo by Dan Watson.
given us such great opportunities on so many levels.” A provider of fulfillment services and technology solutions to entertainment and See VISION, page 7
SCV Native on Forbes List After Raising $1.8M By Jana Adkins SCVBJ Editor
F
ormer Santa Clarita resident and Hart High graduate Andrew Yakub was just named a 2016 Forbes 30 Under 30 honoree in Energy; raised $1.8 million for his second company, Santa Monica-based Rayton Solar; and hopes to open a manufacturing plant in Santa Clarita by the Q1 2017. And he still leases space in Valencia for his first company, ReGen America.
While saying it is absolutely possible to make solar energy cheaper than energy generated from fossil fuels, Yakub hopes to spark a much larger conversation about solar panels and their potential to solve current and future energy crises. With silicon being the most expensive component of a solar panel, Yakub set out with the second company he founded, Rayton Solar, to find a cheaper way to make panels. Rather than using traditional methods of cutting the silicon wafers, the firm See RAYTON, page 16
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Canyon Country · Newhall · Saugus · Valencia · Stevenson Ranch · Castaic · Agua Dulce
SANTA CLARITA VALLEY BUSINESS JOURNAL Santa Clarita’s Only Business Publication www.scvbj.com
$2.00 · Volume 7 · Number 11
march 2016
Cover The Museum of Television Takes a Peek at Santa Clarita
Editorial
To the Moon and Back for Valencia Firm
SCVBJ Editor
New Media Team Puts Control of News Group Back into Local Hands
Jana Adkins jana@signalscv.com
SCV Firm Reportedly Attracts $75M Investment
661-287-5599
SCV Native on Forbes List After Raising $1.8M
Advertising
Features
661-287-5564
)XO¿OOPHQW )LUP /HDVHV 7KLUG Warehouse to Suit Growth. . . . . . . . . . . . . 6
Major and National Accounts Marketing Director
“NCIS” celebrates 300th TV show in Santa Clarita. . . . . . . . . . . . . . . . . . . . . . . .6
Maureen Daniels
Lavi Industries Reinvents Itself as Technology Company from Manufacturing Firm . . . . . . . . . . . . . . . . . . 8
maureen@signalscv.com
RV Park Invests $1.1M in Solar Power . . 9
Sales Manager
Northrop Grumman Gets Green Light to Build Bomber . . . . . . . . . . . . . . . . . . . . . . . 9
Michael Madigan
661-287-5566
michael@signalscv.com
NAI Capital’s Valencia Office Closes Multiple Deals . . . . . . . . . . . . . . . . . . . . . . 10
661-287-5561
Critics Aside, California’s Business Climate is ‘Still Golden’. . . . . . . . . . . . . . . 11
Multi-Media Account Executives
Alfred Mann Steps Down as Executive Chairman of Mannkind . . . . . . . . . . . . . .12
Monica Jaffe
Alesia Humphries Darmon McGruder
Printing Technology Solutions Firm Relocates to Santa Clarita . . . . . . . . . . . . 13 Valencia Firm Powers Sound at Super Bowl 50, Grammy Awards. . . . . . . . . . . .13 State’s Film Incentive Program Already Reaping Results . . . . . . . . . . . . . . . . . . . . . 14 Executives Step Down at California Resources Corp. . . . . . . . . . . . . . . . . . .14
Toni Sims ■ A worker on the manufacturing floor of Cicoil Corp. prepares to test a custom, military application electrical flat cable. Photo by Dan Watson.
Jennifer St. Clair
From the Editor
Art/Production grow, move over, San Bernardino. It may have an Amazon warehouse, but Santa Clarita isn’t short on order fulfillment firms and all of them continue to grow. One firm just reportedly sold for somewhere around $75 million, and another leased a third warehouse to accommodate ongoing growth. So, in short, Santa Clarita continues to retain ‘em, grow ‘em, and attract ‘em! Yeah; we’re golden, too.
SCV Voices: Differentiation for Students with Learning Differences . . . . . . . . . . . . . . .5
To borrow the SCV Economic Development Corp.’s mantra which says California is “Still Golden,” the SCVBJ speaks with four local businesses in this edition who believe that, despite the higher cost of doing business in the state, and the oftentimes onerous regulations, California is still one of the best places to do business. And while we profiled five businesses in the last edition that had all relocated to Santa Clarita, we speak with a few more in this edition who are either moving to the SCV or considering the area. And that’s not all – stay tuned for the April edition to learn about another company moving into the area. As for spotlighting firms that continue to
SCV Voices: Turning Receivables into Working Capital . . . . . . . . . . . . . . . . . . . . .12
Index of Products and Services
SCV’s Honda Performance Development Gears Up for New Honda Deal as Engine Supplier to Racing Series. . . . . . . . . . . . .15 Aerospace Research Bill Passes Committee to Fund Federal Aviation Studies . . . . . . .15 Mixed-Use Project and Theater Approved to Move Forward . . . . . . . . . . . . . . . . . .17 Hyatt Hotel Changes Hands. . . . . . . . . . . 19 Law Firm Appoints Price as Partner . . . . . 19 Paladin Multi-Media Group . . . . . . . . . . . 20
Articles
Valencia Park Executive Center under New Ownership. . . . . . . . . . . . . . . . . . . . . 18 SCV Voices: Personal Connections: They Are Making a Comeback in Professional Relationships . . . . . . . . . . . . . . . . . . . . . . . .19 Column: VICA . . . . . . . . . . . . . . . . . . . . . .21 Real Clear Business Advice . . . . . . . . . . . . .21
SCV Business Services The List . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 VIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 SCVEDC . . . . . . . . . . . . . . . . . . . . . . . . . .27 Chamber of Commerce . . . . . . . . . . . . . . .28
Business Data Central Commercial Real Estate . . . . . . . . . . . . . . .29 Residential Real Estate . . . . . . . . . . . . . . . .31
American Family Funding . . . . . . . . . 2 Brain Balance. . . . . . . . . . . . . . . . . . . 4 Brookfield Residential . . . . . . . . . . . . 2 Castaic Lake Water Agency . . . . . . . .14 Colliers International . . . . . . . . . . . . .31 General Pavement Management . . . .16 JRL Electric . . . . . . . . . . . . . . . . . . . . 4 Kadima Security Services. . . . . . . . . . 4 LBW Insurance Financial Services. . . 8 Mission Valley Bank . . . . . . . . . . . . 12 NAI Capital . . . . . . . . . . . . . . . . . . . .31
Administrative Assistant
Graphic Design Supervisor
Deborah Runions Photographers
Daniel Watson Katharine Lotze Executive Staff Publisher
Jana Adkins SCVBJ Editor jana@signalscv.com
Randal G. Winter Construction, Inc. . .31 RJB Law Offices . . . . . . . . . . . . . . . . 4 RM Business Solutions . . . . . . . . . . .19 SCVEDC: Ken Striplin . . . . . . . . . . . 9 SCVEDC: Don Kimball . . . . . . . . . .11 SCVEDC: Lance Williams . . . . . . . 13 SCVEDC: Tim Burkhart . . . . . . . . .15 SCVEDC: Economic Outlook . . . . .17 Valencia Acura . . . . . . . . . . . . . . . . . .10 Valencia Park Executive Center . . . . .18 Watford Moving & Storage . . . . . . . .31
Santa Clarita Valley Business Journal (a Signal publication), © 2015, is published monthly by the Santa Clarita Valley Signal newspaper, a Morris Multimedia company, 24000 Creekside Rd., Santa Clarita, Ca. 91355. The SCV Business Journal is intended to provide business executives with a cross-section of industry news and information, trends and statistics that impact our growing community. Information gathered in the pages of the SCV Business Journal has been collected from what is considered reliable sources, and is believed to be accurate, but cannot be guaranteed. Articles may not be reprinted without publisher’s written permission. For reprint requests, please call 661-259-1234. POSTMASTER: Send address change to SCV Business Journal, P.O. Box 801870, Santa Clarita, Ca. 91380-1870.
Charles F. Champion II cchampion@signalscv.com 661-287-5578 Vice President and Editor
Jason Schaff jason@signalscv.com 661-287-5515
Online www.scvbj.com
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SANTA CLARITA VALLEY BUSINESS JOURNAL
5
To the Moon and Back for Valencia Firm By Jana Adkins SCVBJ Editor
N
ot all companies can lay claim to the fact that their products directly supported the life of Apollo astronauts, but Santa Clarita-based Cicoil can. And in a chance opportunity, one of the long-lost flat cable harnesses produced by the company came up for auction from a private collection – and came back to the place it was manufactured 50 years later. The flat high-performance cables, embedded in lightweight ribbons of materials for maximum flexibility, enabled continuous monitoring of vital signs, such as blood pressure, respiration, body temperature, and pulse rate for each astronaut during flight and orbit – and for the spacewalk of Apollo 9 astronauts in 1969. “There was an auction of a lot of Apollo space memorabilia. It came out of Astronaut James McDivitt’s private collection. That’s how it came to my attention,” said Howard Lind, owner, president and CEO of Cicoil. “We registered and bid on it and won the auction. Now we have it back at Cicoil, set up in a nice display case of historical items in our lobby.” Amazingly, the harness looks virtually brand-new, considering its age and the number of miles it has traveled, said a spokesperson for the company. Cicoil’s cable systems also supported astronauts John Glenn when he orbited the earth, Edward White who took the first
walk in space, and Neil Armstrong who took the first step on the moon. Cicoil’s newest owner, however, migrated a slightly shorter distance to helm the pioneering company.
From Harvard to gears Growing up in Canada, Lind came to the United States to attend Harvard Business School where he says he was “bitten by the entrepreneurial and manufacturing bug.” While friends went on to seemingly more prestigious positions, Lind chose a small company in Queens, New York. “It was a small, rundown company that made gears. Over time, I convinced the owner to sell it to me. I bought it, growing it and making it better,” Lind said. Lind later sold the company to what is the Parker Hannifin Corp. “Ever since then I’ve run small manufacturing companies with proprietary technology and put in new equipment,” he said. “Cicoil originally was a vendor to a company in New York. I was looking for something new that had proprietary technologies.” In 2006 Lind purchased Cicoil – building and all. The firm was founded in 1956, replacing stiff bulky cables for companies like IBM and the aerospace industry. Originally located in Hollywood, in later years the firm moved to Chatsworth and then to Valencia in 1986. It’s been in Valencia 30 years. Innovation is continuously behind the flexible flat cables filled with electrical
wiring, and the company’s research and development has resulted in several U.S. and worldwide patents. What Cicoil offers can’t be purchased in China or elsewhere, Lind said. What is manufactured in Valencia is innovative, unique and valuable, he said. The firm constantly comes up with new products and techniques, serving primarily the military and aerospace industries, but also the medical and medical diagnostics industry. And a wide variety of machinery in the semi-conductor and robotic equipment fields use Cicoil products, as well. The benefit of flat cables is they occupy only half the space of comparable round cable counterparts. Aerospace clients using Cicoil’s products include Raytheon, Boeing, Northrop Grumman and Space X. Abbott Laboratories uses their products in the medical space, and semi-conductor firm KLA-Tencor is also a big player. The better known stories, however, might be the one about when America put a man on the moon with the help of Cicoil’s ribbon cables. In the decades that followed, Cicoil flat cables have performed on every U.S. fighter jet, most commercial airplanes, and in many demanding missile and land-based applications – all of which keep Cicoil in continuous research and development mode.
Innovation “You have to constantly come up with new products and techniques of value to your customers. That’s the trademark of a
company that’s going to survive and thrive in a high-cost environment.” As for the man who preferred manufacturing to Wall Street, Lind says sales have more than doubled with the company, now tracking $10 million. “We’ve been growing pretty well and pretty rapidly over the past five to six years. The company was always a well-kept secret and it didn’t do a lot of sales and marketing. We hired sales people, got more visibility and our cables are now being used in more and more applications,” Lind said. “Last year we grew more than 20 percent.” With 85 employees operating out of 16,000 square feet of space, Cicoil also has engineers on site who help with a lot of customization for customers and end users. “We do a lot of customizing. Our engineers work with the engineers of our clients to design and customize applications,” Lind said. But, that takes time and Cicoil includes design and production time in its business plans. “From the point you first talk to the engineers to getting into regular production orders, it typically takes two years,” Lind said. “That takes a lot of sustained hard work. We have to be patient; it’s not a quick turnaround cycle.” As for relocating from the northeast to Santa Clarita 10 years ago, Lind said that part of the equation is easy. “I see being in Santa Clarita as a plus. It’s a business-friendly environment and good workforce,” Linda said. “I am proud to have it as a home base and for business.” ■
SCV Voices
Differentiation for Students with Learning Differences By Rebecca J. Ivatt
Brain Balance Center of Valencia
T
he contemporary classroom is significantly more diverse than the traditional one-room schoolhouse. We live in an age where mental abilities, disabilities and learning preferences are increasingly documented and analyzed, making it possible to cater to individual needs. The key to running a successful classroom of diverse learners is “differentiation”—a pedagogy in which teaching reflects student needs and caters to all types of learners. Classroom Groups and Centers Many classrooms utilize small groups, cooperative pairs and centers based on students’ levels and abilities. This collaborative dynamic leads to discussion and positive interdependence. Literacy centers and math groups with tactile activities leave room for more authentic and personalized assessments. Moreover, group processing and division of tasks can be beneficial for students with all different strengths, and this supports a culture of teamwork in an inclusion classroom. Visual Aids in the Classroom Using images in anything from a social studies article to a science experiment adds another
layer of context and makes grade-level content more accessible to different learning preferences. When reading a story, portray the words on the board and provide students with copies to read at their desks while you read aloud. Or, when starting a new unit, display applicable media and videos to accompany the text and lesson. This is particularly helpful for students with attention and processing disorders. Lesson Plan Adjustments Making strategic adjustments in your lesson plans can potentially help a greater number of students. When teaching writing, incorporate multiple graphic organizers and templates. When teaching multiplication, discuss arrays; skip counting, distributive property, standard method and the lattice method instead of just one method. When teaching about animals in the winter, conduct a preview of words that may appear in the text, such as “features,” “warmth,” “temperature,” “hibernation” and “adaptation.” Leave the definitions and images on the board while reading the chapter. These little adjustments provide a necessary flexibility and the chance to work toward independence without the overwhelming expectations of standard education. ■ ■
■ Howard Lind President and CEO of Cicoil Corporation looks through a display case holding an actual piece of Cicoil cable from the Apollo 9 space walk in 1969 recently acquired by the company. Photo by Dan Watson.
■ Cicoil Corp. Courtesy photo.
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SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2016
Fulfillment Firm Leases Third Warehouse to Suit Growth By Jana Adkins SCVBJ Editor
F
amily-owned and operated, Valencia Fulfillment has just leased its third building, 15,000 square feet of additional space on Avenue Stanford in the Valencia Industrial center. Begun out of the garage of President Jose Corona 15 years ago, Valencia Fulfillment now tracks sales of over $3 million annually and employs 40 people. But new clients necessitated finding a third building for his growing business. “I can see that we’re not small anymore. My wife and I started in our garage over 15 years ago. I’ve been in the fulfillment business for over 20,” Corona said. “It’s been quite a journey for myself.” With its main office on Hasley Canyon Road in Castaic, Valencia Fulfillment differs slightly from other fulfillment companies such as AMS Fulfillment, he said. While Valencia Fulfillment manages order fulfillment, and maintains and ships inventory to clients, the firm also does some light manufacturing and bulk assembly, often packaging multiple products into kits which then go out to its clients’ warehouses for distribution. “We actually assemble and package items to make a finished product,” Corona said. “For example, we might put together a cosmetic kit that has a bottle of shampoo,
conditioner, comb, and brush. We take all those components to make a kit for sale.” With its own printing equipment, Valencia Fulfillment also expanded by printing and putting together literature or presentation packages for companies. After printing and assembly, it also handles direct mail for them, saving clients on postage. Being a medium-sized business allows the company to be flexible, he said. “We have our own fleet of trucks for deliveries,” Corona said. “We service clients from all over. Some of our clients are overseas, others are nationwide, and a lot are local clients in this valley.” And, like other fulfillment firms, Valencia Fulfillment also handles everyday distribution for client companies, storing products and shipping them out on behalf of their clients, many of whom operate web-based stores. Growth thus far has come naturally, Corona said. The firm’s business has come via word-of-mouth. “We don’t have a sales force,” he said. “Demand for services is based on recommendations from our own clients, it’s all organic.” While Corona is busy moving inventory into the company’s third warehouse, however, he’s still busy planning the future. “The goal is to buy a big building and put everything into one location. That would be ideal,” he said. “We’re looking forward to that in the near future.” ■
■ Valencia Fulfillment Inc. President Jose Corona, left, and wife and company Vice President Marisol Corona at their Valencia location. Photo by Dan Watson.
■ Packaged products move down the conveyor as workers assemble and prepare products for shipping in the assembly area at Valencia Fulfillment in Valencia. Photo by Dan Watson.
“NCIS” celebrates 300th TV show in Santa Clarita By Jana Adkins SCVBJ Editor
T
he long-running TV show, “NCIS” starring Mark Harmon, celebrated the filming of its 300th episode on the backlot at their studio in Santa Clarita in February. The 300th episode airs on Tuesday, March 15. Actor Taye Diggs guest stars on the episode, playing a Marine suffering from PTSD, CBS announced. His character, Gunnery Sergeant Aaron Davis, is going through a music therapy program in a rehab facility as a result of traumatic injuries sustained during an ambush attack in Iraq. Gibbs, played by Harmon, wants him to recount his memories in an attempt to solve a murder. “It was a lofty benchmark to get to,” said Evan Thomason, economic development associate for the city of Santa Clarita’s Film Office. “It’s almost unheard of in the TV industry. It really speaks to the tremendous popularity of one of America’s favorite shows.” A locally-based TV show, “NCIS” is now in its 13th season. But, the forerunner to the show was “JAG,” which also filmed in Santa Clarita. “It’s many of the same group of people that have filmed out here for 20-plus years,” said Kelli Lajer with the city’s film office. “A ton of people now own houses out here; they moved here and raised their
families. It’s perhaps the longest running crew ever.” Both Evanson and Lajer, who attended the 300th episode celebration, said as they chatted with crew members and people learned they were from the city’s film office, they became like a magnet, with crew members sharing their stories of living in Newhall off Lyons, or in Canyon Country, and telling the film office staff how much they love working locally. “There are a lot of people working in the industry who live here and it’s great and always exciting to hear the enthusiasm of people working in the film industry,” Evanson said. “As city officials, seeing it firsthand makes us feel great. It (the industry) keeps locals employed; they spend more time with their kids or avoid longer-term child care situations, and shop locally.” The feedback gleaned by being at the celebration further verified for the city’s staff that in general, Santa Clarita has a “great reputation for being film-friendly,” he said. As for Actor Taye Diggs joining the cast of the 300th episode, the NCIS executive producer Gary Glasberg said in a statement that the emotionally charged role is tailormade for Diggs. “For our 300th episode, we needed a guest actor who could proudly portray one of our nation’s wounded warriors as well as participate in a very touching musical performance,” Glasberg said. ■
■ Santa Clarita Film Office.
■ Santa Clarita Film Office.
MARCH 2016
VISION
Continued from page 1 consumer product clients, Vision Media Management has worked with every major movie studio and TV network, describing itself as having “one foot in the physical distribution world and one foot in the technology sector of the business.” But perhaps even more notable is the fact that, although the company has changed ownership hands twice, each time it has landed squarely back under the direction of the man who has energetically nurtured his vision for the past three decades. That unbridled passion just attracted a big round of financing. Alvarez will continue to lead the company as CEO and President, and serve on the company’s Board. Using his signing bonus when he was first drafted by the St. Louis Cardinals, Alvarez started the company with close family friends, the Russells, in 1986. In 2002, they sold the company to Deluxe Entertainment Services Group. He stayed on to continue running the operation. In 2014, however, Alvarez bought the company back using a bridge loan with a 36-month payoff period to acquire the company he started, and reportedly increased the value more than three-fold in less than two years. Reportedly, Alvarez paid between $17 and $18 million to buy his firm back in 2014. And rumors are that he just sold a percentage of it for $75 million on Jan. 26, 2016. “I can’t comment on any specific numbers,” Alvarez said. “I can just tell you that Deluxe was kind enough to sell the company back to me at a fair price, and that CenterGate’s investment was an unbelievable event. Our team was able to show we had an even larger share of the marketplace and that we had created even more value.” Whatever the actual dollar amount is, Alvarez said CenterGate’s investment has given the company an incredible shot at even greater growth in its ability to extend more services to its clients. “We met with 12 different banks over time,” Alvarez said. “But, CenterGate wanted our business. We are thrilled to partner with them in the future. Everything they told us was all as advertised – they nailed it.” Going in new directions the past few years has led to Vision Media Management’s growth.
Multiple channels Not only does it support the traditional warehousing and order fulfillment model, Vision also built an asset management system for many of today’s top studios via an automated fulfillment system called VMx. And it offers a secure portal for digital distribution of watermarked materials “Vision represents several lines of business,” Alvarez said. “One focuses just on technology; building apps or websites, creating web portals, streamlining content, coding of content or even watermarking. It also has a business that relates to filming; picking and packing the content of materials going to end users, whether it’s a T-shirt, cap or other product. Vision helps them market their brand. We work as an extension of our clients. We put no limitation on our clients’ ability to be creative.”
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Those clients range from Sony, Warner Brothers, Fox and Universal to consumerbased companies like Ikea, Sam’s Club, John Paul Mitchell, and more. But, the film business is especially conducive to Santa Clarita. For the studios, it provides theatrical fulfillment services which include the distribution of theatrical one-sheets such as the posters promoting a film or show, trailers, and self-standing promotional displays. “We’re excited for Valencia because the business here; Hollywood (the industry) is strong in Valencia,” Alvarez said. “A large portion of our business is about supporting Hollywood. We help several divisions within a studio to get their products out. We are concierges to this business.” But for now, Alvarez is laser focused on moving the company to the next level.
International Footprint Vision Media Management has one million square feet of warehouse space between Valencia and Tejon, Alvarez said. Stateside it has locations in the Midwest, Louisville, and internationally; it also has locations in London, Australia, and a facility near China – all to serve international clients. “We have over 50,000 pallets of material right now,” he said. But having grown the company over the years, Alvarez says he still hasn’t forgotten the people from the families that helped along the way. He still has a huge appreciation for both the Russell and Wenrich families whom he worked with as he grew the business, he said; as well as for the employees.
■ Vision Media Management Founder Michael Alvarez in the lobby of the Valencia company which displays the company’s mission statement. Photo by Dan Watson.
Vision With more than 200 employees to support its global presence, the company has employees who began as teenagers but who have remained with the firm. Employees have an average of 15 to 20 years tenure, he said. And he feels good that his own bloodline is part of the legacy, with his brother working in the operation, as well as his son who has now joined the finance team. “Every day I think about the fact that I’m a big part of making sure people and their families are eating; that we continue to provide opportunities to people. In order to do that, we have to have impeccable service and work with people who truly care about our clients’ products.” The investment CenterGate made helps secure an even stronger future for those employees and allows the company to turn future challenges into even greater opportunities, he said. It allows immediate growth and puts the firm in a position to look at future acquisitions. As for the employees, they and the community benefit, as well. “A large portion of our workforce is coming from Santa Clarita,” Alvarez said. “They help support our restaurants, churches, and sports teams so that everyone prospers. We are so excited to have this business in this unbelievable community.” With the new investment, will Alvarez consider retiring? “My goodness, no,” he said. “The money will never define me. What defines me is how I lead this company into the future. With the new partnership and C-level team, we are all excited to take on the future. I’m also a father and I want my kids to see me continue to lead.” ■
■ Vision Media Management Founder Michael Alvarez, left, and son, Michael Alvarez III. Photo by Dan Watson.
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SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2016
Lavi Industries Reinvents Itself as Technology Company from Manufacturing Firm By Jana Adkins SVBJ Editor
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t’s hard to imagine having queued in line at a bank, airport or concert or other entertainment venue, and not have had help moving the line along by Santa Clarita’s Lavi Industries. What began as a traditional manufacturing company of belted stanchions – posts – and crowd control barriers in 1979, transformed into a technology firm nine years ago, said an executive with the firm. And it’s still growing, the firm which moved to Santa Clarita from Northridge in 1983, Lavi Industries recently leased an additional 39,474 square feet of space for five years with options for more years, said Kevin Tamura, executive vice president for DAUM Commercial. Tamura represented the landlord. “The facility will be refurbished for Lavi Industries to use as expansion space,” Tamura said. “The building is equipped with multiple loading doors; good clear height and ample power, which has been distributed throughout the building.” The latest lease gives Lavi Industries nearly 100,000 square feet of total space, said Perry Kuklin, director of marketing and business development. Their main facility is 40,000 square feet and they had previously leased 18,000 square feet of space two doors down from them. The firm also occupies 20,000 square feet of space at its New York-based manufacturing and shipping facility.
“We needed more space, we’re growing and have expanded tremendously in past decade,” Kuklin said. “We’re not just expanding our product line, but expanding markets.”
Technology-oriented Referring to company’s tagline – “For people and the places they go,” Kuklin said the firm started out in public guidance with traditional manufacturing of products like the stanchions – posts with ropes. Later it developed the retractable belts seen so often where queuing lines form. But, Lavi Industry has since grown into the largest manufacturer of public guidance solutions in North America, he said. And much of the last decade’s growth has come from its technology solutions. “We started realizing that technology was going to play a huge role in queue management in how customers flowed, the way people move around in environments,” he said. Designing a hardware/software product called Qtrack CF – for CF Call Forward – Lavi Industries mounts LCD screens at the front of lines using wireless remotes by the cashiers which send signals to the monitors, prompting customers and directing them to the next available cashier or ticket taker. In between those prompts, Lavi’s customers can also advertise to customers or play other media to an audience that is captive in line. Providing both the belted stands along with technology put the company into a full-service position offering a range of solutions to large crowds or long lines. “There are technology companies that provide signage and those that provide stanchions,” Kuklin said. ‘But there are very few
■ Yonatan Lavi, left, Director of Product Management and Electronic Queuing and Perry Kuklin, Director of Marketing and Business Development, in the conference area for software development at Lavi Industries in Valencia. Photo by Dan Watson.
companies that can provide a business with a full range of solutions.”
Everyday Staple The products have become a staple of everyday life at banks, airports and any place that people are standing in line. Lavi recently announced the results of a case study at the Dallas-Fort Worth Airport where Lavi’s products are in use. Use of the firm’s products at the world’s ninth-busiest airport showed reduced passenger stress at security checkpoints and better wait time management for the estimated 174,000 passengers moving through the airport daily. The results also suggested improved agent productivity. But, there’s also the psychological benefit. Lavi Industries has a number of technologies including a Qtrack VT system that allows people to wait, without having to wait in line. A customer can make an appointment online from home or using a smart phone or text to register for service at any type of business. They don’t have to actually go into business and wait, Kuklin said. And, psychologically that puts control back into the customer’s perspective because they’re no longer wasting their time standing in line and they have information as to where they are in a line. “Known-waits are psychologically shorter when you know how long you’re going to wait, people are a lot happier about it,” he said. “Customers are more loyal when they feel they’re in control. And if they’re busy and have information about the wait time, they get to choose if they can’t wait five minutes.” But, how does the technology determine the wait times?
Sensors Lavi’s other product, the Qtrack IQ, uses sensors embedded into the stanchion used for managing crowds. Those sensors watch and count people coming into a line, and as they move through and exit a line; they can also calculate speed and wait times, Kuklin said. Combining the data allows locations to predict wait times and even determine conversion rates in a retail store, alerting the retailer as to how many buy merchandise once they come in a stores. The systems are 99.8 percent accurate. The information also assists with staffing levels. The product, used in a few airports around the world and in Europe, help redirect airport traffic. Since there are often many ways to get to a gate, for instance, via terminal A, B or C, by publishing the wait times in each line
customers can redirect themselves, he said. The systems balance customer loads throughout the airport using historical and real time data to know where they need to open up more service positions. “Essentially, Lavi Industries is now able to provide data about live customers in a physical location that firms have been come to expect from their website and ecommerce businesses,” Kuklin said. All that technology has exposed the company to scores of industries.
Industries Lavi Industries services pretty much every major company or industry you can think
We pret pretty much own the h air i transportation space. Every major airline uses our products, and most airports use our products. The TSA is a big user of our products.” – Perry Kuklin, Director of Marketing and Business Development
of, he said. Its products are very big in retail – both big box stores and smaller specialty stores. They’re very big in the hospitality area like major hotels, restaurants, fast foods, financial institutions, and very big in stadiums and arenas. “We pretty much own the air transportation space. Every major airline uses our products, and most airports use our products. The TSA is a big user of our products,” Kuklin said. Technology aside, caring for all those customers requires employees and Lavi Industries has 100 of those, with some 20 located in its New York facility. Those numbers have increased 10 percent or more in just the past year as the company’s growth continues. But, perhaps its biggest in-house claim to fame is a physical product it built – the world’s longest retractable belt, Kuklin said. Able to expand to 130 linear feet, the company refers to it as its “jet track” – more than half the length of a Boeing 747. ■
MARCH 2016
SANTA CLARITA VALLEY BUSINESS JOURNAL
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RV Park Invests $1.1M in Solar Power By Jana Adkins SCVBJ Editor
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eeking a solution to energy bills soaring over $20,000 per month in the summer months, Castaic Lake RV Park has invested $1.1 million to install solar panels at their park. Operating for 38 years in the Santa Clarita Valley, the recreational vehicle park originally opened in 1979 as a KOA (Kampgrounds of America) park. It was later acquired, however, by a banker who gathered four people together to buy it. Three of the buyers were from the Newhall-Saugus-Valencia Lions Club at the time, said the park manager. The fourth was a partner the banker knew from another business. Today, two second-generation owners operate the park on Ridge Route Road only one-half mile from Castaic Lake. “The four owners/partners got together and decided to install solar. We applied for a loan in April 2015, but it took the bank over four months to approve it,” said Ray Graeber, general manager for the past 25 years. “Construction started at the end of October and was completed Dec. 30.” The RV park then had to wait for Southern California Edison to visit and give them permission to operate, which it received on Feb. 4. With 103 full hook-up sites plus six overflow sites, along with 200 storage sites for RVs and boats, Castaic Lake RV Park hosts a total of 309 sites at its park. The owners wanted to increase profits by saving on operating expenses, and be green at the same time, Graeber said. Solar seemed like the perfect solution, but investment cost estimates ran high. “We had gotten quotes for the past eight to 10 years for putting a solar system in the park, and one of the last ones I had gotten was
■ From left, Castaic Lake RV Park Owner Clyde Widrig, Owner Jeanne Staudigel, Assistant Manager Carlos Alan and General Manager Ray Graeber, stand under a portion of the newly installed solar panels which are part of the $1.1 million upgrades at the Castaic lake RV Park in Castaic. Photo by Dan Watson.
around $2 million,” he said. “But, one of the owners and myself went to an RV Park Association and met with someone from Shorebreak Energy Developers. He came out and looked at the park and gave us a quote for $1.1 million, with a five-year payback.” With Edison bills averaging around $8,000 per month during the winter, that amount soars to over $20,000 during the sizzling hot summer temperatures, Graeber said. With the new solar system, the park now expects to save
Northrop Grumman Gets Green Light to Build Bomber By SCVBJ Staff
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ederal authorities have denied Boeing’s protest of the U.S. Air Force’s decision to award Northrop Grumman a contract to build the Long Range Strike Bomber, allowing Northrop to move forward with engineering and development work after a three-month delay, reported Defense News. On the heels of that announcement by auditors in the Government Accountability Office, the Air Force News Service said the decision followed a comprehensive review of the source selection process. The Air Force was confident that the source selection team followed a deliberate, disciplined and impartial process to determine the best value for the war fighter and the taxpayer. “We look forward to proceeding with the development and fielding of this critical weapon system. This platform will offer the joint community the required capability needed to meet our national security objectives and the evolving threat environment,” Secretary of the Air Force Deborah Lee James said in a statement. “It is important to ensure affordability in this program and the ability to leverage existing technology as we proceed forward.” When the protest was originally filed, both Boeing and Lockheed called the selection process for the LRS-B “fundamentally flawed.” The two aerospace giants said the cost evaluation was imperfect. But experts
say even if Boeing takes the case to court, its unlikely Northrop will have to stop work on the fighter plane. “Northrop Grumman is pleased that the U.S. Government Accountability Office has denied Boeing's protest and reaffirmed the Air Force's decision to award Northrop Grumman the Long-Range Strike Bomber (LRS-B) contract,” Randy Belote, vice president of strategic communications for Northrop Grumman Corp., said in a statement. “This confirms that the U.S. Air Force conducted an extraordinarily thorough selection process and selected the most capable and affordable solution. Belote went on to say that bombers are vitally important to national security and that Northrop is delighted to be resuming work on the next-generation Long-Range Strike Bomber. The U.S. Air Force plans to buy 100 of the fighting aircraft, saying it gives the military another air component of the “nuclear triad,” providing visible and flexible nuclear deterrent capability. The contract could total $80 billion. "Our nation needs this capability," Chief of Staff of the Air Force Gen. Mark A. Welsh III said in a statement. "The current bomber fleet is aging. The technology advantage the U.S. has enjoyed is narrowing. This new bomber will provide unmatched combat power and agility to respond and adapt faster to our potential adversaries." ■
$6,000 to $7,000 per month in energy costs. “The power goes right back into an Edison feed and supplements power that Edison supplies, so they supply less power to the park, generating a large chunk of power ourselves,” Graeber said.
In addition to the full-service hook-up sites which include water, sewer, and 50 amp electrical power, Castaic Lake RV Park also powers its laundromat, restrooms, general store, and an onsite outdoor swimming pool for park visitors. ■
SCVEDC recognizes the leadership shaping our local economy.
Ken Striplin
Executive Committee Member Board of Directors
KEN STRIPLIN is the City Manager for the City of Santa Clarita. Throughout his 20 years with the City, Ken has played an integral role in the fiscal and organizational success of the City of Santa Clarita. Working with the City Council and staff, Ken has helped to ensure the City delivers an on-time and balanced budget, a triple A credit rating from Standard and Poors and a multi-million dollar annual capital projects program. Ken holds a Bachelor of Arts in Political Science and a Master of Public Administration from California State University, Northridge, as well as a Doctorate in Organizational Leadership from Pepperdine University.
Regional leadership for a regional economy.
www.stillgolden.org
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SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2016
NAI Capital’s Valencia Office Closes Multiple Deals By Jana Adkins SCVBJ Editor
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AI Capital’s Santa Clarita office wrapped up multiple deals with the $8.8 million sale of a Van Nuys industrial property, and the $2.1 million sale of another industrial property on Avenue Stanford in Valencia – which led to two more deals. Located two blocks from the Van Nuys Airport, the executive vice president and branch
manager of NAI Capital, Yair Haimoff, sold the 54,597 square foot multi-tenant Gloria Densmore Park consisting of four buildings at Gloria and Densmore Avenues. Yair Haimoff represented the buyer, REX Investment LLC. The seller was Camillus T. and Phyllis V. Decinces. The total sale price was $8,783,000. In a deal which also closed escrow last month, Haimoff represented the seller on the $2.1 million sale of a 17,775 square foot freestanding building standing situated on a more than 32,000 square foot property located at 25334 Avenue Stanford. Haimoff represented
the seller, Flight Logistics Inc., and Matt Sreden from NAI Capital’s Valencia office represented the buyer, D-Rock LLC. D-Rock purchased the building for his own purposes, Haimoff said. The ■ Avenue Stanford property. NAI Capital Courtesy photo. building is a two-tenant “We had multiple offers on this building,” building, with the larger side representing 52 percent of the space, Haimoff said. “However, the seller felt most which will be occupied by the buyer. The comfortable with the buyer, as the buyer demonstrated good faith and was very prompt smaller side is now offered for lease. throughout the negotiation process.” Sale of the Valencia property made the transaction a whole lot more challenging in that he then had to find space for the seller, Flight Logistics Inc. They were looking for approximately 5,000 to 6,000 square feet of space, which is very rare to find given the fact that the Santa Clarita Valley vacancy rate is running as low as 2.5 percent. Haimoff did find a location but the right space, located at 28348 Constellation Road,
The he market m is the polar opposite pp i of when the market crashed. We had tons of inventory, but it was very hard to find tenants and buyers. Now we have tons of tenants and buyers but no inventory.”
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– Yair Haimoff, Executive Vice President and Branch Manager of NAI Capital turned out to be occupied by Air Masters Air Conditioning & Heating, which owned the building. That owner was only looking for 2,000 to 3,000 square feet – which virtually doesn’t exist in the market currently. Switching gears in a chess-like match of commercial deals, NAI Capital pulled that deal off, as well. It placed Air Masters in space at 26450 Ruether Avenue - a building in which NAI had just represented the buyer of last year, which sold for $6.8 million. “This deal was definitely a bit more special than just a regular transaction, as it led to two more deals, which was very fascinating,” he said. “It was so hard to locate replacement sites, but with a bit more hard work and determination, it was “mission accomplished.” While 2016 has started with a bang for Haimoff’s Valencia office, he said more inventory is sorely needed to help clients find the space. “The market is the polar opposite of when the market crashed. We had tons of inventory, but it was very hard to find tenants and buyers. Now we have tons of tenants and buyers but no inventory,” he said. “So the set of skills and survival mode that we experienced during the recession time is being applied now once again. We need to work extra hard and be very creative to get deals done.” ■
MARCH 2016
SANTA CLARITA VALLEY BUSINESS JOURNAL
11
Critics Aside, California’s Business Climate is ‘Still Golden’ By Jana Adkins SCVBJ Editor
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ven though business owners criticize California’s onerous business regulations, Southern California’s plentiful sunshine, semi-arid climate and top talent still help to create, retain and attract businesses – even those firms who were once lured away by other states’ incentives, or those companies who were tempted to. And the same is true for Santa Clarita–based businesses. To borrow from the mantra of the Santa Clarita Valley Economic Development Corp., California is “still golden.” Florida-based tech firm Flippbox announced it was relocating its headquarters to Sacramento a month ago, reported the Greater Sacramento Area Economic Council. Begun in the Bay Area in 2012, the cloudsyncing and mail management company moved its operations to Florida after one of its advisors was wooed by Governor Rick Scott’s appeal that lower taxes alone meant a more robust economic climate. However, California is still the most profitable state to do business in, said Flippbox Founder and CEO, Randy Hucks, after attempting to ramp up operations in Florida. “It is difficult to replicate the caliber of talent, the infrastructure, or the lifestyle that California provides,” Hucks told the GSAEC. During the economic downturn, one of Santa Clarita’s fastest growing companies, Scorpion, briefly considered the possibility of relocating its headquarters to Texas, said its Founder, President and CEO, Rustin Kretz. “We ultimately decided against it, as we didn’t want to uproot our people and their families,” Kretz said. “This turned out to be the right decision, as the sheer number of amazing local people we have added to our company during the last five years has been incredible.” The technology Internet marketing company has landed on the Inc. 5000 list for five years in a row and is poised to make it for a sixth. “We are fortunate to have access to so many creative and technical-minded people in the area, and we are thrilled to currently be in talks to build a 100,000 square foot building right here in the SCV as our permanent corporate headquarters,” Kretz said.
From Florida to Newhall Vitaliy G. Branding agency in Newhall also returned from Florida, according to its Founder, Vitaliy Gnezdilov – who only goes by the name Vitaliy G. He’s in the process of re-branding his own firm, changing the name to Gem Digital Agency. Originally a resident of Santa Clarita and a graduate of Academy of the Canyons, Vitaliy G. moved to Florida five years ago. But, he just returned three months ago saying, for one, “there are no alligators here.” Every time he had visitors from California, he’d learn about how much had been happening in the Santa Clarita Valley and said he felt the time to return was ripe – saying Santa Clarita was “no longer a small bedroom town; it has big potential.” “There is highly skilled, highly educated talent here,” Vitaliy G. said. “We want to unify people who are into tech, design and business and form a center for those people here so that the talent doesn’t continue to leave the valley.” But it’s not just the technology and creative firms that are beginning to take root here. One of the region’s top five business clusters also sees its future here.
Aerospace and Defense “California, even though it’s expensive, is the best place to do business,” said Howard Lind, president of Valencia-based Cicoil. Lind should know. Originally hailing from Canada, he ran a firm in New York before purchasing Cicoil in 2006. “People working in these environments (expensive) work harder; they hustle, move faster, work harder. They have to, to make the money it takes to live here,” Linda said. “They’re a lot more productive than other places, and so that equalizes out to a certain extent; it’s not just about wages or salaries.” Cicoil manufactures different types of flat cables used in industries including space applications, aerospace and jets. “At one point I looked to move the New York business to Florida, but decided against it,” Lind said. “As for Cicoil, there’s a lot of talent in Santa Clarita. So much of what we do is military and aerospace-based; it’s still very strong in California.” Santa Clarita is alive and kicking with talented engineers for companies that operate testing, plating and manufacturing, he said. A lot of Cicoil’s own customers are even located in the valley. “The workforce is very good for aerospace manufacturing, and electrical assembly and electrical wire soldering. Engineers much prefer living here over somewhere else that’s cold,” Lind said. “The grass is not always 100 percent greener elsewhere.”
Hollywood North And one of Hollywood’s most well known photo labs for the film and music industry in the past, Richard Photo Lab considered moving to Las Vegas before deciding to relocate to Santa Clarita. Santa Clarita has broken location filming records for more than five straight years and is now often referred to as “Hollywood North.” “At one point, we calculated we could buy a building in Las Vegas for what two to three years of rent in California would cost,” said owner Brian Greenberg, who purchased the business just as the entertainment industry was transitioning away from print and onto online marketing. While Las Vegas was financially attractive, that would also mean risking losing some of his most skilled film artisans, Greenberg told the SCVBJ in October. “I have a number of people on my staff who are not interchangeable. Some specialize in their craft; they’ve been doing it for 25 years and are now considered the best in the world,” Greenberg said. “I couldn’t just move to Las Vegas and hire a new staff. I didn’t feel I could repeat my product in another state.” Today the Santa Clarita-based photo lab has 40 employees, with Greenberg turning around what had become a struggling business and making it even bigger in the past decade. And while the few remaining competitors in the print photography business have relocated to the Midwestern portion of the country where land, water, electricity and power are far cheaper, he said it’s nice being able to “tap into a new pool of employees” in Santa Clarita as he continues expanding. California’s golden perks aside, its companies also tend to be more innovative and profitable than those in other states.
California’s track record While other states, including Texas, Florida and Arizona to name a few, have worked to lure companies out of California with tax breaks and other incentives, California is still recognized as the clear leader for both innovation and profitability, important considerations
■ Penny Seechooratana senior web developer, seated, and Kristen Morin Senior web developer work on a client’s web site at Scorpion headquarters in Valencia. Photo by Dan Watson.
for any tech company, reported the GSAEC. California has 53 Fortune 500 company headquarters locations while Florida, for instance, has just 15, and the state’s companies are significantly more profitable. The Golden State boasts on average a 134 percent company stock return, according to the economic agency, and is responsible for 40 percent of the total U.S. innovation economic performance. It has nearly ten times more new patents than states like Florida, making it an innovation center of the country. “Every year, more and more people from SCV and Los Angeles become part of our family, and their hard work and incredible attitudes have helped us to deliver even better service to our clients,” Kretz of Scorpion said. “So instead of moving our entire headquarters, we opened up a second office location in Dallas, TX, while continuing our expansion
in Valencia, CA.” Most of the firm’s new hires come from employee referrals, and most of their employees live in Santa Clarita, the company reports. Committed to remaining in Santa Clarita, Vitaliy G. is finalizing paperwork to get an office on Main Street in downtown Newhall, saying he wants to set up shop there before it gets really big as a result of the revitalization efforts. The city just approved a mixed-use residential and retail building, new parking structure and Laemmle Theatre on Main Street. “Cicoil has people with a lot of built-in knowledge; people have worked there for 20, 30 and 40 years,” Lind said. “We make complicated, specialized things and have the support all around from the machine shops and other companies that support aerospace. Having a network around you like that makes a big difference.” ■
SCVEDC recognizes the leadership shaping our local economy.
Don Kimball
Executive Committee Member Board of Directors
DON KIMBALL has 29 years of increas-
ing management experience with The Newhall Land and Farming Company and currently serves as Executive VP-Operations and Financial Affairs and Secretary. Prior to his current position, Mr. Kimball served for many years as Senior VP and CFO for Newhall Land, which up until 2004 was a NYSE listed public company. Mr. Kimball is active in the local community and currently serves as Chairman of the Board of Henry Mayo Newhall Hospital. He also is on the Executive Board of the Santa Clarita Valley Economic Development Corporation and serves on the Measure M Citizens Oversight Committee for Santa Clarita Community College District. Mr. Kimball served on the Board of Directors for the Santa Clarita Valley Committee on Aging for 27 consecutive years until 2015, having served in various executive officer positions, including 3 terms as President and most recently serving another term as CFO.
Regional leadership for a regional economy.
www.stillgolden.org
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SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2016
Alfred Mann Steps Down as Executive Chairman of Mannkind Biomed Firm By SCVBJ Staff
during a legendary career and are proud to continue Al’s decades-long pursuit of addressing the unmet needs of patients with diabetes and other serious illnesses.” After years of research, development, and clinical trials, MannKind’s new delivery system for the treatment of diabetes, Afrezza - an inhaled insulin product - was approved by the Food and Drug Administration in 2014. A partnership with a Paris-based marketing and distribution firm fizzled and the agreement was terminated Jan. 5. Born in the mid-1920s in Portland, Oregon, Mann’s ability to envision new realities first led him to found companies in the aerospace industry, setting up companies that were later successfully sold to Boeing and Textron. But, he soon entered the biomedical industry founding and funding Bioness, Second Sight, IncuMed, PerQFlo, MiniMed, Advanced Bionics and
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erial entrepreneur Alfred E. Mann notified the MannKind Corp. of Santa Clarita that he was resigning as Executive Chairman and board member effective immediately on Feb. 17. No reason was given.
The next day MannKind’s board of directors named Kent Kresa as Chairman of the Board and also named Mann as Chairman Emeritus of MannKind. Mann will continue to advise the company as an employee in a non-executive capacity. “Al founded this company in order to bring his unique flair for medical innovation to the biopharmaceutical space,” CEO Matthew Pfeffer said in a statement. “We are awed by his many accomplishments
MannKind. He also founded Quallion and Stellar Microelectronics to service the aerospace field. Overall, he has founded and largely funded 14 companies, several of which operate in Santa Clarita. The Mann Biomedical Park bears his name, as well as the Alfred Mann Foundation in Valencia. “Al is a true visionary and has created a great company with an impressive lead product and powerful technology to help patients with serious diseases,” Kent Kresa, chairman of MannKind Corp. said in a statement. “We have much to do to make his dreams a reality, but we have the people, technology and knowhow to make that happen.” Kresa has been a director of MannKind since June 2004 and was named Lead Director in November 2011. Kresa is also Chairman Emeritus of Northrop Grumman Corporation, having previously served as its Chairman and CEO. ■
15 Years Serving the Community E S T. 2 0 0 1
SCV VOICES Turning Receivables into Working Capital By Janet Shinkle Mission Valley Bank
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eed financing faster than a conventional loan might allow? Then consider Accounts Receivable (AR) financing, which is fast becoming a popular option and good alternative for businesses to accelerate cash flow by financing open invoices. In fact, more and more financially sound small to mid-sized businesses are finding AR Financing to be a great tool to help manage cash flow and grow their business. Today, many qualified borrowers are choosing AR Financing over more traditional forms of credit available to them because of the flexibility and unique benefits this type of financing provides. As an example, a business generating $2 Million dollars in gross annual sales creates $166,000 per month. If receivables are paying in 30 days, then the business could improve its cash position by over $5,000 for every day it improves its AR turn. By obtaining cash for invoices within 24 hours, a business eliminates a frozen asset on the books and replaces it with a predictable source of working capital to run the business. In addition to working capital, cash could be used to meet payroll needs, take advantage of trade discounts, extend credit to customers, and meet expenses or fuel business growth.
What is AR Financing?
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Mission Valley Bank’s Accounts Receivable (AR) Financing Program can help your business bridge the cash gap between payables due today and receivables you won’t see for 30 days or more. Call us today at 877.394.2306. Let’s discuss if AR Financing is the right solution for your business.
Bank with a trusted source. FULL-SERVICE BUSINESS BANKING ACCOUNTS RECEIVABLE LENDING MERCHANT BANKCARD SERVICES COMMERCIAL LENDING EQUIPMENT FINANCING SBA FINANCING “We’re proud of our reputation as a Trusted Advisor and welcome the opportunity to earn your business.” —Tamara Gurney, President/CEO
M I S S I O N VA L L E Y B A N K . C O M Branches located in:
SAN FERNANDO VALLEY Y CORPORATE HEADQUARTERS 9116 Sunland Blvd., Sun Valleyy 818.394.2324
SANTA T CLARITA VALLEY CENTRE POINTE BUSINESS BANKING CENTER 26415 Carl Boyer Drive, Santa Clarita 661.775.4113
AR Financing is simply the selling of outstanding invoices or receivables at a discount to a bank, finance or factoring company, providing quick cash to the business. It is an asset-based financing arrangement where a company’s receivable accounts are used as collateral in exchange for cash bridging the gap between payables due today and receivables remitted in 30 days or more. The value assigned to the account depends upon the age of a receivable. Simply put, the more current the invoice, the more value it is assigned. When utilized, AR Financing bridges the cash gap between a company’s payables and receivables immediately.
How it works.
The lender purchases all of a company’s qualifying current and future receivables at an agreed upon discount rate and pays the company for all current receivables immediately. The lender continues to pay the company for new receivables as they are generated, generally within 48 hours of origination. This greatly enhances the reliability of the borrower’s cash flow stream, effectively allowing the borrower to operate as an all cash business.
What to think about.
Before making the decision whether AR Financing is right for your business, do your homework and explore all your options, including traditional lines of credit and term loans, SBA Financing, or personal financing. While many financially sound small to mid-sized businesses are selecting AR Financing as their preferred form of credit, determine if it is truly right for your business. The last word if you decide that AR Financing is a good choice for your business, carefully select your lender. The right relationship can make a huge difference with regard to the success, and even the survival, of your business. ■ Janet Shinkle is vice president and relationship manger with Mission Valley Bank, a locally-owned, full-service, independent, commercial bank with Preferred SBA Lender status serving the San Fernando and Santa Clarita Valleys. She was named “2015 Most Trusted Advisor -- Business Banking” by the San Fernando Valley Business Journal and can be reached at (661) 775-4111. MissionValleyBank.com
MARCH 2016
SANTA CLARITA VALLEY BUSINESS JOURNAL
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Printing Technology Solutions Firm Relocates to Santa Clarita from SFV By Jana Adkins SCVBJ Editor
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fter growing their print services company into one which harnesses hardware and software technology solutions to fit into the workflow processes of firms, Image 2000 is relocating to Santa Clarita and hopes to be open locally by May 1. Purchasing a building appraised at $2.9 million in the Valencia Industrial Center in a 1031-exchange for property owned in Van Nuys, Image 2000 simply needed more warehouse space as it expanded its services to multiple locations, including Fresno, Bakersfield, Buena Park, Orange County, Inland Empire and Las Vegas, NV, said an executive. “We wanted more warehouse space than we could get in Van Nuys, which lacked quality warehouse space for a reasonable price,” said CEO Joe Blatchford. “And there’s a better quality of life in Santa Clarita.” The firm is moving into 22,500 square feet of space, up from 17,000 square feet of space, on the corner of Avenue Stanford and Huntington Lane. The added space allows Image 2000 warehouse space for its inventory of copier/printer/scanner/fax machines, as well as to house the 60 to 70 employees who work out of the local office. In total, the company has 120 employees; however, it plans to hire another 20 to 30 employees, mostly from Santa Clarita, after it relocates, Blatchford said. First launched in 1992, the privately owned firm now grosses $30 million annually.
Among the institutional clients Image 2000 serves is Cedars-Sinai and Children’s hospitals. Locally, however, the firm also supports Henry Mayo Newhall Hospital, College of the Canyons and the Saugus Union School District. While Image 2000 provides all of the equipment and labor to maintain it, plus supplies to clients, more importantly, it creates connectors or bridges to a clients’ own in-house workflow pathways. “We’ve migrated past the old days where a copier just produces a piece of paper off a printer,” Blatchford said. “We can now even send documents through to a warehouse, shipping division or even to another department for approval.” The technology today is positively 21st century, he said. To that end, the firm sources equipment with open architecture – as opposed to proprietary software – so that clients can take advantage of their technology to meet their own needs. Apps aren’t only for iPhones or iPads today. Using special software, Image 2000 can build a bridge from a copier/scanner to a firm’s in-house departments and set the names of those divisions up on the equipment so that, for instance, documents can be scanned and fed directly into the company’s workflow systems. Before the company could relocate to Santa Clarita, however, the firm first needed a little help finding the right spot, Blatchford said. To do that, they researched the area and found the Santa Clarita Valley Economic Development Corp. “They’ve been very beneficial in helping
Valencia Firm Powers Sound at Super Bowl 50, Grammy Awards By SCVBJ Staff
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ost Super Bowl 50 fans likely went into halftime surprised by the Denver Broncos lead over the Carolina Panthers on Feb. 7. And that’s when Santa Clarita-based ATK Audiotek took over. ATK Audiotek provided the audio and system integration services for the halftime entertainment, and pre-game show, when Lady Gaga, Coldplay, Beyoncé and Bruno Mars took the stage to entertain some 72,000 fans at Levi’s Stadium in Santa Clara, Calif. Not to mention the reported 111.9 million viewers who tuned in to watch the game. “With high-profile live events, you have to be certain that the equipment you use is going to perform exactly as planned,” Mikael Stewart, VP of special events, ATK Audiotek, said in a statement. “There is no room for error. That’s why we rely on JBL loudspeakers; they provide the consistent premium sound quality that these events demand.” No sooner had the equipment and cabling been pulled from the stadium, ATK Audiotek was headed off to provide pristine sound at the 58th Annual Grammy Awards. The firm also works on advanced communication systems for companies installing networks, video conferencing, presentation systems and digital signage in both retail and other industries such as the biomedical field. Its business is roughly comprised of 60
percent televised events and 40 percent built on integration of systems for other companies. Equipment aside, the real trick is managing resources with people travelling all over the world for events, said an executive. Managing 12 to 14 events daily makes the logistics complex and pivotal, but even more herculean a task is the redundancies the company builds into each sound experience so that a show never skips a beat. If one system fails, it routinely rolls over to another – a feat President Michael MacDonald refers to as “fail over gracefully.” A complicated endeavor to satisfactorily capture every sound going live and make it work is a quite a learning curve, President Michael MacDonald told the SCVBJ in a special profile article January 2015. “It’s not at all unusual to have 30 to 70 inputs for every musical act. It’s quite a learning curve to figure how to make that work,” he said. “The biggest challenge is that you only have a few minutes between musical acts to be prepared.” Privately owned by three partners – MacDonald, Scott Harmala, CTO/vice president, engineering, and Mikael Stewart, vice president of special events – ATK Audiotek started out in Burbank but relocated to Santa Clarita Valley nearly nine years ago. Occupying 55,000 square feet of space for inventory, and with 75 employees, this summer the firm will have been in business for 33 years. ■
■ Image 2000 CEO Joe Blatchford and president Rich Campbell stand in their new Valencia warehouse. Photo by Katharine Lotze.
us to relocate. When James (Brown) came out to see us, the timing was perfect,” he said. “And Todd Lorber and Craig Peters (CBRE commercial real estate brokerage) were both instrumental in helping us come out here.” “We knew the brokers,” said Jim Brown, SCVEDC Business Attraction Manager. “They asked us to meet with Joe and his controller down there (Van Nuys). They were also looking in the San Fernando Valley. We talked about what we can do for
them in terms of permitting and fees.” Blatchford also said a few of their employees already live in Santa Clarita, but he expects that number to grow once they see the area. He, himself, has been a resident since 1989. “We want people to be excited about coming to work and living here. And once they see the community, I think they will,” he said. “We expect a lot of employees will end up moving out here.” ■
SCVEDC recognizes the leadership shaping our local economy.
Lance Williams
Executive Committee Member Board of Directors
L ANCE WILLIAMS, a California native,
has been building homes for more than 25 years. Founding the company that bears his name in 1996 along with housing legend Ray Watt, his development experience encompasses all disciplines of residential real estate. As president and CEO, Mr. Williams has directly overseen the acquisition, entitlement, financing, development, construction, sales and delivery of more than 500 homes in 30 communities worth in excess of $200 million, and currently has in development or under construction an additional 600 units with a completed value of approximately $300 million. Prior to founding Williams Homes, Inc., he was employed by Watt Housing Corporation and Beazer Homes, Inc. where he served in a number of management roles. Mr. Williams received his Bachelor’s degree in Finance, Real Estate and Law from California State Polytechnic University, Pomona and is a California licensed real estate broker and licensed general contractor.
Regional leadership for a regional economy.
www.stillgolden.org
14
SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2016
State’s Film Incentive Program Already Reaping Results; $1.4 Billion in Spending By Jana Adkins SCVBJ Editor
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little more than half-way through the first fiscal year under the state’s new film incentive program, Executive Director Amy Lemisch said film productions are already beginning to return to the birthplace of the industry in California. Although the first full year under the new program, in which the old lottery system is abandoned in favor of one which emphasizes job creation and money pumped into the local economies, will not be complete until June 30, California is already seeing the fruits of its enhanced tax credit program. As of July 1, the state’s film program will have $330 million in tax credit to allocate for the following fiscal year. “We’re very, very pleased,” Lemisch said. “We’re seeing the results that the program is working. We’ve had four TV series relocate to California as a result of the program.” Those shows are HBO’s “Veep,” ABC’s “Secrets and Lies,” FX’s “American Horror Story,” and ABC’s “Mistresses.” “Veep” is returning from Maryland, “Secrets and Lies” from North Carolina, “American Horror Story” from New Orleans, and “Mistresses” from Vancouver, Canada. A fifth show, Fox’s “Rosewood” had only shot a pilot in Miami, but decided to move the production to California under the
state’s new program rather than remain in Florida. It’s not yet been announced where in California they will film. And, Lemisch expects to see increasingly positive results as feature film productions begin kicking into gear. “TV is the easiest measurement because they go into production more quickly,” she said. “It’s a slower process for feature films. It takes longer preparation times to begin shooting.” As for Santa Clarita, there is a long history of filming for TV series being based in the region – “Recovery Road,” “Stitchers,” “Switched at Birth,” “Justified,” and more, she said. Many shows in the state’s program are have filmed in Santa Clarita. “From the current (incentive) program, HBO’s “Westworld” films in Santa Clarita,” Lemisch said. “It is one of the first shows to get into the new program and shoot extensively in our area.” To further boost filming locally, the California Film Commission recently changed the definition of what qualifies as an approved production facility under the state’s guidelines, to include many of the established movie ranches in Santa Clarita. While the revision in the regulation is pending public comment, Lemisch expects approval by mid-April. “It’s interesting that so many shows film in Santa Clarita,” said Lemisch, who works closely with the film offices in cities throughout the state. “You have the
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infrastructure, many of the location needs, all of the movie ranches, suburban neighborhoods and wilderness.” But, Lemisch attributes the increasing film activity in the region to the fact that Santa Clarita “has a very strong film office.” Calling it a very important partnership, the state commission often refers people to the city’s film office because they’re very helpful on a local and state level, she said. Although the state’s fiscal year still has four months to go, to date the new program is on track for more than a billion dollars in direct spending, according to Lemisch. Direct spending includes money California Film Commission Executive the productions actually spend in aggregate ■ Director Amy Lemisch. Courtesy photo. for crews, equipment, wardrobes, rentals, food, and everything in between. “Film and TV productions retained are on track to contribute $1.4 billion in direct spending,” Lemisch said. “Included in that number is $550 million in wages (paid) to crews. There’s tax revenue (for the state) related to that. “I think we will continue to see more productions come out to ■ “Blunt Talk” is an American sitcom on the Starz cable network California.” ■ starring Patrick Stewart. Photo courtesy of STARZ.
Executives Step Down at California Resources Corp. By SCVBJ Staff
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alifornia Resources Corp. Executive Chairman, William Albrecht, is expected to move into the role of NonExecutive Chairman at the company’s annual stockholder meeting in May. Albrecht said he served as executive chairman to help in the transition when Occidental Petroleum spun a division off as a stand-alone company in November 2014. Todd Stevens, president and CEO of CRC, continues to helm the company which has an operation in Santa Clarita. Last year it opened a technology center for engineers and geoscientists in 21,000 square feet of office space on Tourney Road. Stevens is also a resident of Santa Clarita. “Todd Stevens and CRC’s management team have demonstrated excellent foresight and decisive judgment during a challenging first year. I am fully confident that Todd and the senior management team will continue to effectively guide the company going forward,” Albrecht said in a statement. “The Board and I believe that it is appropriate, and a reflection of CRC’s commitment to strong corporate governance, that I move to a non-executive chairman role.” CRC also announced that its Executive Vice President, Southern Operations, Frank Komin, is retiring after 16 years with the company. He led the operations in the Los Angeles and Ventura basins. Robert Barnes, executive vice president, who currently leads CRC’s Northern Operations in the San Joaquin and Sacramento basins, will oversee statewide operations upon Komin’s retirement.
“I would personally like to thank Frank for deferring his retirement to help us launch CRC,” Stevens said in a statement. “With his effective leadership and extensive experience, Frank has made a very significant contribution to our organization and to the communities where we operate, and we are grateful for his leadership.” California Resources Corp. is the largest oil and natural gas exploration firm in California with a vast oil field in the Elk Hills of Kern County, near Bakersfield. The oil reserves were reportedly first discovered in 1911. It largely went untapped and was held in reserve until the Arab Oil Embargo in 1973 and 1974. Congress then passed an act opening the lands up for drilling. Occidental Petroleum took over operations in early 1998 in a sale by the U.S. government to privatize the operation. In 2009, the company announced it had made a major discovery of oil and natural gas in the area, calling it the largest onshore California oil and gas discovery in 35 years. With rising crude inventories, however, gas prices took a dive this year, diminishing net returns for companies in the industry. CRC has high profit margins, reports financial news service The Street; however, dropping prices have affected net profits. The service reported CRC slightly underperformed in industry average, with revenues falling 42.7 percent from a year ago, decreasing earnings per share. In an interview with the SCVBJ last year, however, Stevens said the industry historically goes through periods like this and CRC plans accordingly for ups and downs in inventory levels and pricing. ■
MARCH 2016
SANTA CLARITA VALLEY BUSINESS JOURNAL
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SCV’s Honda Performance Development Gears Up for New Honda Deal as Engine Supplier to Open Wheel Racing Series BY SCVBJ Staff and Associated Press
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onda renewed its commitment to North America’s open-wheel racing series IndyCar. American Honda and its racing subsidiary, Santa Clarita-based Honda Performance Development (HPD), have an agreement to continue as a manufacturer in the IndyCar Series through 2017, with an option to extend the agreement through the 2020 season. Honda has been a part of open-wheel racing since the founding of the performance center in 1993 when it entered the now retired racing league, Championship Auto Racing Teams (CART), at the start of the 1994 season. “In the 13 years that Honda has been a part of the IndyCar, we’ve had a great deal of success, both against strong competition from other auto manufacturers and as single engine supplier,” Art St. Cyr, president of HPD, said in a statement. “Honda is pleased to be part of the IndyCar Series, as it provides a technical challenge for our associates, a showcase for Honda products worldwide, and incredible entertainment for racing fans.” Honda Performance Development operates out of a 167,000-square-foot building in Santa Clarita. The two-story facility houses motorsports research and development operations, including design, development engineering, prototype, and production parts manufacturing. Honda’s success includes 217 race victories, 15
drivers’ championships, six competitive manufacturers’ championships, and 10 Indianapolis 500 victories since 2004. Also tied to the local development center is Valencia resident and Hart High graduate, Bryan Herta. A former open-wheel race car driver, Herta launched his own team, Bryan Herta Autosport. While he has raced in CART, the Indy Racing League, and 24 Hours of Le Mans, Herta fields his own team with race cars in various series and has worked closely with Santa Clarita-based Honda Performance Development. On Feb. 18, Herta announced his team has been folded into Andretti Autosport of the famous Andretti racing family. The new team will be called Andretti Herta Autosport. In December, it was reported that Honda Performance Development scaled back its involvement with Wirth Research to move part of its aerodynamic development program in-house for the 2016 IndyCar season. That change came on the heels of Honda’s re-entry into the European racing series Formula1 by partnering with team McLaren. The move allowed the Santa Clarita center access to a Formula 1 technical group at Honda in Japan. Formula 1 has three North American events on the schedule this year, with races at the Circuit of the Americas in Austin, TX, and in Canada and Mexico. “We want to race and this (IndyCar) is a premiere series in North America, so it’s very important for us to have a presence in this type of racing,” Honda Performance Development President Art St. Cyr told Associated Press. “What we want to do and what we’re doing here with this agreement and agreements beyond this is to really create a good
Aerospace Research Bill Passes Committee to Fund Federal Aviation Studies By SCVBJ Staff
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bill to allow the Federal Aviation Administration to continue and expand its research, engineering, and development programs cleared its first legislative hurdle on Feb. 11. It now awaits consideration in the House Committee on Rules. The FAA Leadership in Groundbreaking High-Tech Research and Development Act (FLIGHT R&D Act), bill H.R. 4489, was introduced by Santa Clarita’s Congressman, Steve Knight. The bill authorizes funding for the FAA to study and utilize improvements in aerospace technology with the goal of advancing aviation safety, security, and economic competitiveness. The House of Representatives Committee on Science, Space, and Technology, of which Rep. Knight is a member, took the bill up for consideration. “Aerospace plays a vital role in our national defense and our economy – especially in the Antelope, Santa Clarita, and Simi Valleys,”
Knight said in a statement. “I am glad that my colleagues are joining me in strengthening America’s aviation program.” H.R. 4489 directs the FAA to move forward on advances in cybersecurity for future aircraft as well as integrate unmanned aircraft systems into the national airspace system. It also calls for emerging fields such as singlepiloted aircraft, air traffic surveillance over oceans, and advanced fuels. Those initiatives are crucial to the future of American flight and will have positive economic impacts on the many companies in Southern California that are involved in aerospace manufacturing, Knight pointed out. “When the aerospace community grows, our local economy thrives,” Knight said in a statement. “Aviation research and development means more jobs and more opportunities for our small businesses to flourish.” The bill is said to be “budget-neutral,” meaning even if money is spent on the program, it will result in other savings so that no new taxes or deficits are incurred. ■
■ Honda renewed its commitment to North America’s open-wheel racing series; IndyCar. Much of the work will occur at its racing subsidiary; Santa Clarita-based Honda Performance Development. Above; HPD operates out of a 167,000-square-foot building in Valencia. Courtesy photo.
foundation that has a platform to have exciting racing, to have exciting personalities.” Last year was easily the toughest as Honda drivers spent most of the year chasing the more dominant Chevys following an aerodynamic kit change. Chevy wound up winning all 16 poles and 11 of 16 races. That disparity in engine performance prompted series officials to take one car with each engine for testing in the wind tunnel. Mark Miles, the CEO of IndyCar’s parent
company, Hulman & Co., said the results showed Honda could be at a disadvantage on road and street courses but not superspeedways, so Honda proposed a series of changes. He did not elaborate on specifics. “They didn’t approve all of them, we don’t have a final ruling yet,” St. Cyr said. “I think we have a common understanding of where we’re going with this stuff. I think that our expectation is that we can be competitive this year.” ■■
SCVEDC recognizes the leadership shaping our local economy.
Tim Burkhart
Executive Committee Member Board of Directors
TIM BURKHART, a long term resident of Santa Clarita, is currently the Corporate VP of Maintenance and Construction for Six Flags Theme Parks, and is based at Six Flags Magic Mountain. He is responsible for maintenance, construction and major planning activities for all Six Flags properties world-wide, and is actively engaged in new park development throughout the world. Tim began his career at Magic Mountain in 1977, is a graduate of William S. Hart High School in Santa Clarita, and holds a bachelor’s degree in psychology from California State University, and a Masters Degree in Business Administration. In the community, Tim has been active in the Boy Scouts and United Way, The Santa Clarita Anti-Gang Task Force, The SCV Boys and Girls Club, The Youth Master Plan Executive Board, the SCV Sheriff Department Advisory Committee, and the SCV Youth Project. He has served as Chairman of the SCV Diabetes Association and Chairman of the American Heart Association Heart Walk. He is also a past President of the Santa Clarita Valley Chamber of Commerce, and past Chair of the Valley Industry Association.
Regional leadership for a regional economy.
www.stillgolden.org
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SANTA CLARITA VALLEY BUSINESS JOURNAL
RAYTON
Continued from page 1 uses a new method making silicon wafers about one one-hundredth of the thickness of standard wafers. Introducing beams of electrically accelerated ions with enough energy to penetrate the surface, allows Rayton to extract very thin layers of silicon without all the waste that accompanies traditional manufacturing. It also means producing more panels using less material, which lowers the cost dramatically, he said. It also changes the manufacturing dynamics where most of the production is handled overseas. “It brings high-tech manufacturing jobs back to the U.S,” Yakub said. “It makes it (the process) exclusive to the U.S. because in order to operate the machinery, it requires a higher level of skill sets and education which don’t exist abroad. This creates more clean, energy renewal jobs.” Rayton Solar’s proprietary manufacturing process produces solar panels that are 60 percent cheaper and 25 percent more efficient than the market standard. By reducing the cost of going solar while establishing a higher rate of efficiency, the Rayton team hopes to make solar technology more accessible to the masses. To that end, Yakub incorporated Rayton Solar in 2013 as a solution to the first company he founded. He began raising funds last March and to date has raised $1.8 million to buy manufacturing equipment and fund a couple months more of research and development, he said. Yakub is looking at Santa Clarita to open the
MARCH 2016
manufacturing plant. ReGen America, with a leased facility in Valencia, was Yakub’s first venture. It was a solar finance installation company for factories and large commercial buildings. That business is still privately owned by Yakub. “We would finance solar installations against the U.S. grant program and lease it to them over 20 years,” Yakub said. “Firms immediately saved 30 percent on their energy bills; it was a flat rate where the leased rates never increased.” The U.S. financing grant program, however, was critical to the financing he provided, but it all came to an end in 2012. So Yakub looked at what to do next, trying to figure out how to run the program as effectively as it was run with the grants. “The answer was to reduce the cost of solar panels so we didn’t need the grants,” he said. “That’s when I founded Rayton Solar. The percentage saved with the new manufacturing process is the same as when we had the grants back in 2012.” Having pursued physics at UC Santa Barbara, Yakub turned to founding Rayton Solar as the solution. The Los Angeles market is a good place for their product and testing, he said. “We actually want to build a 6-megawatt per year manufacturing facility, which is equal to powering up 1,000 homes. We want the plant to be capable of producing the solar modules,” Yakub said. “And then we’ll run it for one year to prove it’s commercially viable.” Once that feat is accomplished, Rayton Solar is ready to scale up or bring in a larger company if they want to adopt the firm’s technique and use it, he said. ■
■ Andrew Yakub, founder, Rayton Solar and ReGen America. Courtesy photo.
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MARCH 2016
SANTA CLARITA VALLEY BUSINESS JOURNAL
17
Mixed-Use Project and Theater Approved to Move Forward By Jana Adkins SCVBJ Editor
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ow that the noise from both sides of the revitalization effort in downtown Newhall died down when the Santa Clarita City Council members gave their blessing in February to bring a 400-space parking garage, retail and residential space, and a Laemmle Theatre to the area, the real work begins. At an overall projected cost of $15.2 million to provide parking in the downtown area in the form of a parking garage, the city also agreed to give a $3.4 million subsidy to Laemmle, which includes a one-time payment of $1.98 million in exchange for a guarantee that the theater will be open for at least 15 years. But, as the city’s Economic Development Manager, Jason Crawford, pointed out after the project was approved, while the city took one big step, there are still several steps ahead for each of the projects. It’s a little like landing on the moon for this city which lacks adequate entertainment options for the residents within. This big step, however, may help keep residents in the city – and spending their money here as opposed to Los Angeles and the San Fernando Valley. And, it could lead to the attraction of other entertainment venues for the once sleepy bedroom community. “This project is going to have a positive impact; it is going to have a catalyzing effect in terms of Old Town in general,” said commercial broker Tim Crissman with Crissman Commercial Services. “This project at Main and Lyons comes at a critical time in the overall specific plan. Without a large scale project like this, it’s going to be very difficult to generate the type of interest from the rest of the private sector.” Jason Tolleson, principal with Serrano Development agrees. His firm is privately building another 20,240 square feet of retail space, above which will house 46 multi-family residential units. The project also includes a public plaza and an on-site underground parking garage for residents.
Mixed-Use Project
Comparing the project to those in other communities such as Claremont, Glendale, North Hollywood, and Pasadena, Tolleson said this project is very similar to those. “When those projects were completed, they had an almost immediate impact on the neighborhood, driving traffic and getting lots of activity in the districts looking to create new night-time environments with restaurants, shopping, and entertainment uses,” he said. “It’s similar to the Playhouse district in Pasadena on Colorado Blvd. in the late 1990s. That area has really undergone a wonderful renaissance.” His firm expects to break ground in the early part of next year after completing a laundry list of items, including getting all of its financing in order and securing project approvals and building permits. Once all the legwork is completed, then their deal officially closes and the firm will begin working right away, Tolleson said. As for the Laemmle Theatre, Serrano will put its in-house firm, Pacific Empire Builders, to work helping with some of the entitlement and construction planning issues, later to serve as the general contractor. The theater, however, will be 100 percent ownercontrolled, including being responsible for development of Laemmle, he said.
Laemmle Theatre The theater is expected to open by the summer of 2018, said Greg Laemmle, coowner of the independent theater chain, which is a family-owned and operated business. Started in 1938 by his grandfather and a brother 77 years ago, the small chain of theaters tips its hat to the family history. Co-owner Robert Laemmle, Greg’s father, descended from Universal Pictures lore where his father and uncle were cousins of Universal Pictures founder Carl Laemmle. The chain, however, ran into operational roadblocks this century when, after leasing space for theaters in shopping malls, landlords began asking for a higher percentage of ticket sales –making Laemmle a victim of the very success it brought to those malls. With the steep costs of securing movies and conversion to digital projections as the industry evolved, the financials weren’t working for the family business. The company began moving out as leases expired, and looked for partners to build their own stand-alone theaters. Doing so not only required some help from the cities where they relocated, it also took time. “This theater (construction) will follow the other projects,” Greg Laemmle said. “We have a smaller time frame for our construction, so there are certain advantages to having the theater project start when those other projects are further along, with the idea that everything starts finishing at the same time.” Laemmle said he’s learned from experience. In Claremont, the theater was completed before the mixed-use project was finished and while they were able to open, it was challenging during construction of the other projects and keeping the theater open with fencing surrounding it. The Santa Clarita project has a courtyard facing the theater, so it’s very important that the retail shops and courtyard are finished so that patrons can access the theater, he said. Based on the family’s experience with shopping malls, if the city had proposed a similar deal to “double dip” on ticket prices, Laemmle would have been in the same position it found itself in at the malls, he said. The way this project is approved, it’s not only a good deal for Laemmle, but for the city as well, he said. Because the agreement required the theater to operate for at least 15 years and as an entertainment attraction, it hopefully drives more revenue to surrounding businesses. “We have to understand that our main role is to be profitable so we can grow our business at a reasonable level of profit. If we have too much risk and not enough reward, the whole thing falls apart” Laemmle said. “But, we’re also here to bring traffic to this area so we can revitalize it. Our model is very much based on bringing people in and then sending them back out to spend money on meals, drinks, or more at another place. That’s what driving the economics, when there is return.” Laemmle is quick to admit, however, that there can be a dark side to gentrification and that’s of utmost concern to him. But there are things that can be done to address those issues to benefit everyone, he said. Talks have already occurred to look at “helping the nonprofit arts groups and maintaining adequate housing at adequate price points,” he said. All in all, however, residents and other civic and business leaders feel anchoring a Laemmle in the heart of downtown will be
■ Serrano Development Group. Courtesy rendering.
good for the aged district.
Old Town Newhall The project, combined with ground breaking of the new boutique hotel in the area within the next 90 to 120 days down the street at 5th and Railroad Ave., helps people to see that the revival is real and gives them confidence to invest in downtown Newhall, Crissman said. From a long-term perspective, it fulfills the promise made to stakeholders down there that the combination of housing, additional retail options and a movie theater provide the anchor to ongoing renaissance of the area, he said. The original plan under the city’s redevelopment agency called for the construction of two parking garages, one at each end of downtown Newhall.
Now one is planned for construction. Envisioned as an arts and entertainment district, the inclusion of the theater is also a benefit for the city’s ongoing record-breaking filming activity, and to keep people from spending their money outside the city, said an official with the city’s film office. It might even help attract revenue to the city from outside the area. “The Laemmle project is good news because Santa Clarita is definitely a filmfriendly community; and it helps to encourage filming out here,” said Evan Thomason, economic development associate, city of Santa Clarita. “We have a definite interest in the cinematic enthusiasts in Santa Clarita. For those residents travelling outside the valley, this is a wonderful opportunity for them.” ■
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SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2016
MUSEUM
SCV Voices
Continued from page 1
Valencia Park Executive Center under New Ownership By Vartan Hovsepian
V
alencia Park Executive Center (VPEC) located at 25115 Avenue Stanford in Valencia has a new owner that is prioritizing active engagement with the local community. Originally built for Lockheed Martin in 1983, VPEC can accommodate tenants ranging from large institutions to individual private offices. The new ownership team is dedicated to serving its tenants based on the guiding principles of integrity, respect and accountability, with a focus on helping local businesses succeed in partnership with VPEC. VPEC is a proud new member of the SCV Chamber of Commerce, and was also a platinum sponsor of Startup Weekend held at College of the Canyons. VPEC continues to attract new tenants due to its campus environment, corporate image and excellent value. Most recently, VPEC is pleased to announce that Gale, Sutow and Associates and National Property Management Group have decided to establish their offices in the building. Gale, Sutow and Associates is a law firm specializing in workers’ compensation advocacy for employers, insurers and third party administrators throughout
the State of California. The firm’s mission is to provide the highest quality representation to clients through innovative, efficient and aggressive handling of cases. Gale, Sutow and Associates is committed to creating comprehensive and responsive solutions to a client’s needs, be it complex appellate work or legal consultation. National Property Management Group (NPMG) is a technologically advanced property management company which services clients throughout Southern California. The firm’s staff is made up of certified managers and accountants with over 30 years of experience in the property management industry. NPMG’s innovative management solutions allow its staff to cater to the unique needs of each property they manage. VPEC offers a professionally managed building, with onsite support services, landscaped courtyard and expansive windowline. VPEC is also offering free rent incentives for new tenants. Office suites between 600 to 10,600 square feet are available, with up to 13,500 square feet for a full floor tenant. To learn more about VPEC, please contact CBRE: Richard Ramirez at 818-907-4639, Robert Valenziano at 818-907-4663 or Craig Peters at 818-907-4616. ■
couple different cities to create partnerships, said an official with the city of Santa Clarita. “We’re one of the different cities they’re talking to,” said Jason Crawford, economic development manager for the city. “They want to create some partnerships, but we don’t exactly know what that is yet.” Talks are very early on in the process, but the city’s Economic Development Division agreed to sit down with the museum to see what its interests were, and what they were proposing, he said. The Museum of Television is an interactive social history museum that aims to educate, entertain and inspire the visitor by exploring the dynamic history of the second half of the 20th century and beyond, according to its website. The museum’s mission is the promotion of a deeper understanding of American modern history through the study of television programming. It is also home to the Comisar Collection of historic television costumes, props, sets and other written memorabilia, claiming to have a greater historical archive than the Smithsonian in Washington, D.C. Home to a comprehensive collection that includes items from 20th and 21st century TV shows, it has memorabilia as varied as Ralph Kramden’s bus driver jacket from
the 1950s TV show “The Honeymooners,” Ricky Ricardo’s tuxedo from “I Love Lucy,” Captain Kirk’s uniform from “Star Trek,” Maxwell Smart’s shoe phone from “Get Smart,” Archie and Edith Bunker’s living room chairs from “All In the Family,” and Johnny Carson’s complete set from “The Tonight Show,” to Donald Trump’s boardroom from “The Celebrity Apprentice,” Simon Cowell’s judges desk from “American Idol,” and a section of the downed plane from “Lost.” The city is going to meet with them, as it’s generally interested in finding out more information, Crawford said. The Museum of Television is a non-profit organization begun in 2013. It has partnerships with Warner Bros. Television, the National Endowment for the Humanities, the Institute of Museum and Library Services, Atlanta History Center, Chicago History Museum, Oakland Museum of California, the Paley Center in Beverly Hills (in support of PBS’ “American Masters” series), and the Hammerstein Theater in New York City (in conjunction with Comedy Central). “It sounds like they’re looking for a permanent home to have their collection,” Crawford said. “We think this could be a great location for them. A lot of their collection came from shows that have filmed here, like the “Star Trek” episodes that filmed at Vasquez Rocks.” ■
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MARCH 2016
SANTA CLARITA VALLEY BUSINESS JOURNAL
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Hyatt Hotel Changes Hands Law Firm Appoints Price as Partner By Jana Adkins
T
he Hyatt Valencia Regency hotel on Town Center Drive in Santa Clarita has changed ownership, an executive with the hotel confirmed. Southwest Value Partners Enterprises of San Diego acquired the name-brand hotel for $50.967 million. “The transaction closed Jan. 19,” General Manager Eric Ducat said. “The new owners have some plans for the hotel, but I don’t have all the details right now.” Built in 1998, the hotel has 244 rooms.
With 180,450 square feet, it is the only venue in Santa Clarita with the space to host large conferences, luncheons or dinners. Newhall Land & Farming Company built the hotel, with the city contributing money to help expand the conference room at the hotel. Prior to its opening, the developer turned management of the hotel over to the Hyatt Hotels Corp. in January of 1997. Atlanta-based Noble Investment Group acquired the Hyatt in July 2008 and went on to operate the hotel under a long-term license agreement with Hyatt Hotels Corporation. ■
SCV Voices
Personal Connections: They Are Making a Comeback in Professional Relationships By Fred Arnold
American Family Funding
I
am not alone when I say that those of us in professional services are noticing a shift in what our customers want. Yes, technology has made it easy for us all to have nearly instant accessibility to our mortgage broker, Realtor, attorney, CPA, and countless other service professionals. However, as everything has gone electronic, a whole lot of human contact has slipped to the wayside. In talking with peers, colleagues and even clients, one theme continues to emerge in 2016’s breakneck business pace: Customers miss the personal aspect of many of the relationships they once had with their trusted professionals. Here are 4 ways to bring back the personal touches to our professional relationships.
1. Remember Your Core Customers There is no better time than the present to take a look at who you are doing business with, why you are doing business with them, and then look for ways to help them. When you are dealing with referral partners, reach out and ask how you can help them grow their business. When dealing with past clients, who have been loyal, contact them and ask how they are doing. Ask if they need help, with anything. Reaching out for no reason other than to be of service, will go a long way in ensuring that your loyal clients remember why they continue to do business with you.
2. Focus On Being a Specialist, Rather Than a Generalist Who in their right mind would rather see an internist versus an orthopedic surgeon after they have broken their leg? No one, right? So why should professional service providers in any field try to be everything to everyone? The cliché “Jack of All Trades, Master of None,” comes to mind, doesn’t it? By focusing on a core niche, you’re better able to help your core customers, and those they refer to you. As a mortgage professional, of course I have done every type of loan under the sun. But success, even throughout the economic downturn resulted from staying focused on my specialties of purchase loans, VA loans, and reverse mortgages. Obviously I am happy to help
existing clients with a refinance or an FHA loan if that is what they need. But having specialties helps distinguish professionals from the masses. Narrowing your niche to focus on your fundamental strengths allows you to connect with new clients in a personal way as you are not trying throw everything at them and hope something sticks.
3. Go The Extra Mile, (Particularly When You Are Already in Their Neighborhood Mike, a close friend recently shared his experience with me that shows just how far going the extra mile can actually go, if you are just willing to put in the effort. He was in Northern California on business and he decided to check in on a company to see how things were going. He had no agenda whatsoever. As it turned out, the company was having problems with one of its machines, and Mike’s company sold these machines and asked his friend if he could stop by to look at the machine. He accepted, fixed the problem, helped the company increase its efficiency immediately, and gave the CEO tips on how to avoid the problem in the future. The CEO became a raving fan of Mike’s, and is singing his praises to everyone. The personal call, turned into a huge professional success.
4. Show—Do Not Tell—People That You Appreciate Them. Telling someone you appreciate their business is really the least you can do, isn’t it? Instead of just thanking clients via email or text, take five minutes to send them a hand written card. Even better? Write a short blog about your experience working with them, how you found solutions for their needs, and along with other solutions, or experiences, create booklets. Share with your clients that because they allowed you the honor of assisting them with their needs, you are trying to pay forward their trust in you by putting together a short e-book of tips in order to educate others. This year, if you want to make a lasting impact on your loyal clients, your potential clients, and your referral partners, bring the personal, human aspect of your profession back into the mix. It will be appreciated far more than a barrage of emails, or automated text messages which require little to no personal effort. ■
By SCVBJ Staff
A
ttorney Samuel R.W. Price has been promoted to partner in the law firm of Poole & Shaffery LLP, the firm announced on Feb 17. Price has been with Poole & Shaffery since 2010 and is currently president of the Santa Clarita Valley Bar Association. His focus is on civil litigation, representing both plaintiffs and defendants in complex business disputes and commercial litigation, the firm said. His expertise also extends to matters related to construction and construction-defect, employment, and bankruptcy-related matters, among others. “Sam has a deep understanding of the law and a commitment to excellence in his practice, and he has been a phenomenal asset to the firm,” said Managing Partner John H. Shaffery. “It was a very easy decision to name him as a partner, and we are very excited to have him step into this new role.” Among some of Price’s litigation achievements is obtaining a judgment for a permanent injunction from the United States District Court for the Central District of California for a client against its corporate competitor and owner, based on violations of the federal statute prohibiting false advertising (Lanham Act). He also secured dismissal of a Fortune 500 company in an action alleging breach of contract relating to the purchase of product components; and the dismissal of a federal action alleging alter ego and fraud liability
RM
against the owner of an international corporation that had defaulted on a contractual obligation. Price has represented clients in state and federal courts, in mediations and arbitrations, and in administrative hearings before the Contractors State License Board and the California Unemployment Insurance Appeals Board. Price has been repeatedly recognized by Super Lawyers Magazine as a Rising Star in business litigation, an honor that is received by less than 2.5 percent of California attorneys. He also serves on the Board of Trustees for the San Fernando Valley Bar Association, and maintains memberships in the Los Angeles County Bar Association and the Building Industry Association of Southern California. ■
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20
SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2016
Introducing Paladin Multi-Media Group
■ From left, Russ Briley, Chuck Champion and Gary Sproule. Photo by Dan Watson.
PALADIN
believed changes could be made to both that would provide a greater return on the capital than had been realized before.
at the time of this interview, and while deals are in the making, not all can be announced until deals are closed. The staff has had, however, a rare chance to see what it is like to operate with invested owners’ onsite and on hand after more than 30 years.
Sproule: There were a number of things that made purchasing the newspaper attractive – the history and legacy of the paper; it’s a great foundation to build on. Also, it’s the community. The demographics, the insulation from the Los Angeles basin, the quality of life in the community and the loyalty residents have for their community is amazing. All of those are remarkable things to build a paper from.
Continued from page 1
The Back Story SCVBJ: As background, this was a privately financed, asset-only purchase by Paladin Capital Partners. Who are the shareholders? Champion: Russ, Gary and myself. SCVBJ: Would you disclose the purchase price or what the gross revenues of the media company at the time you bought it? Sproule: We don’t want to disclose either at this time, but revenue had been declining over the last several years. It was part of the downward trend in the industry affecting most newspapers. The decline we saw was pretty consistent with what we saw throughout the industry. SCVBJ: What made this property unique or attractive? Why take a risk? Champion: Contrary to the public wisdom about media, not one-size-fits all. There are plenty of community newspaper and media enterprises out there that are profitable and doing well. Those who understand who their audiences are, and are providing news and advertising content to fill their readers’ needs are in fact doing well. We reviewed the financial and operation sides of the The Signal and
Briley: A lot of my motivation was having lived here for 36 years and to be able to see local news be in local hands again. But, I would not have even ventured into this arena if not for Chuck and Gary. I can’t imagine myself getting into any transaction without them. Champion: And we would have not moved forward without Russ’s deep understanding of the market and his understanding of the readers and community as a whole. SCVBJ: What are your growth expectations? Champion: Some modest growth in the first year, and accelerated, substantial growth in years two and three. Sproule: We have a five-year business plan that is pretty comprehensive detailing our revenue plan. But, the only way to make the company successful is to probably spend 90 percent of our time focused on revenue growth. That’s reflected in our plan. Chuck and I tend to reduce the success of any business down to five or eight key drivers and that becomes the foundation of our key assumptions. We track those on a daily or
weekly basis.
Risk-Tolerant SCVBJ: You’ve described yourselves as extremely risk-tolerant? Explain this a little. Sproule: There are business risks associated with any newspaper across the country, whether a national one or a community paper, daily, weekly or monthly. My partners and I look at that type of situation, which while risky, is also an opportunity to come in and turn that trend around, reverse it. We’ve done a lot of due diligence and understand the risk profile we’re dealing with but believe we can make the paper successful again. Briley: Many newspapers haven’t learned how to deal with disruption; we think we can turn the model around for this paper. Champion: Darwin said it (success) doesn’t go to the strongest or fastest; it goes to the one that most quickly adapts to its environment. Conventional wisdom tells you that newspapers are not good investments. And while we concur that, there are newspapers with financial models flawed at their core. This is not one of them. One shouldn’t confuse a flawed model with flawed execution. If you understand what your core competencies are, then you can leverage off of that work and possibly secure a greater return.
Briley: Same thing with distribution. Newspapers all delivered their own products. But, they aren’t in the door-to-door delivery business either. They’re news gatherers. Champion: Also, the erection of a wall between church and state (editorial and advertising) was far too thick when it should have been transparent. Instead it’s opaque and has affected the health of the entire industry. It didn’t allow the newspapers to get close enough to its potential subjects in order to properly serve its communities. While the media needs to stand watch and protect its communities from the abuses of power and the powerful it doesn’t mean you criticize everyone and everything the powerful do. It also doesn’t mean that to maintain your journalistic independence and integrity that you need to kick the heck out of your advertisers and elected officials to show everyone you can and will.
The Community
SCVBJ: Explain what you mean by flawed.
SCVBJ: You invited Tony Newhall, one of the newspaper’s former owners/ publishers and a member of one of the community’s founding families, to the staff meeting when you announced that you had acquired the newspaper. You also invited all former employees to the 97th anniversary celebration. What was the thinking behind these invitations?
Champion: Newspapers made massive investments of capital to buy presses, for instance, but presses weren’t the company’s core competency – the gathering verification, distillation and distribution of news and information is the core competency and not just putting ink on paper
Champion: To communicate to associates at The Signal and community as a whole that the new stewardship understands how important the values that were embodied by the Newhalls and what they represented to the community; and to former employees, who, while no longer still with us, are still
MARCH 2016
very important parts of what made the newspaper what it is and to thank them for the work they did while they were here. Briley: Tony Newhall and I had a lot of conversations during my tenure as publisher. We felt it was important for his whole family to be the first ones to know when we bought the paper. Champion: He was the first person outside of the transaction to know. Briley: And regardless of why employees left, we wanted them to celebrate 97 years with us. It was an important milestone. We also wanted to share our vision for a community newspaper, their newspaper. We didn’t want to be referred to as owners; we wanted to be referred to as stewards of the newspaper so that the paper will be here long after we’re gone. That’s why we held the reunion for any person who has ever worked at The Signal – the paper wouldn’t still be here today if not for their efforts over the years. The community owns this newspaper. Champion: We believe the franchise is not made in a single season. One could not possibly argue whether or not those people at the reunion made significant contributions and came in to do their best work. SCVBJ: Why was it important to add a nonprofit component of the media group? Briley: We understand the needs of the nonprofits. With the Signal Charity Trust we’re forming, it gives us the ability to contribute and help many of those organizations. Champion: At the Chicago Sun Times I saw how a paper could use its reach and funds to help charity. SCVBJ: You’ve clearly been working on winning the hearts and minds of the community through scores of one-on-one and group meetings? Why is that important? Sproule: As Chuck mentioned before, it’s really about the community that “owns” the newspaper. We respect The Signal and respect the community. It’s important to us that we have the support of the community leaders as we move forward. It’s really a tough challenge without that, and is really one of the basic fundamentals of our investment and initial steps – a very high priority to meet the leaders of businesses, non-profits, academia and government. We’ve done a lot of that in the past 30 days with, I think, a lot of positive response. Champion: Russ has been here 36 years. When I first started meeting people we had only been in the market for 36 minutes. We needed to meet individuals to understand from their perspective what the SCV and the neighborhoods within it mean to them, and therefore should mean to us. We needed to talk with politicians and understand their aspirations, as well as those of the business owners. We need to be able to identify and empathize with what problems they struggled with and what dreams they have. How can you begin to serve someone if you don’t understand what they want served?
Nuts and Bolts SVBJ: Regarding newspapers, what has their Achilles heel been? Champion: In the recent past newspapers began trying to cut their way to profitability. That’s like starving my own cow, not buying hay for it and hoping as a dairy farmer I can improve my profits. What happens with that strategy is the farmer ends up with a skinny cow that can’t even be taken to the slaughterhouse. Additionally what happened in our
SANTA CLARITA VALLEY BUSINESS JOURNAL
21
industry was loss of local control. When local owners traded their papers to corporations that only cared about making a dime, and as those corporations went public, the 13 week earnings grind changed decision making. It drove innovation and risk taking out of the equation leaving an industry run for the short term. Yes, the corporatization of media in America destroyed its very mission. With a local community paper, owned and operated in the community for the community, you don’t have to worry about those conflicts.
non-fiction and fact, but story tellers all the same. It can be done in text-based format as well as video and infographics, but we need to do more on multi-media format.
answer for that yet. The entity we’ve created though gives us flexibility. It’s important to know that the three of us are committed full time here and working some ungodly hours.
Sproule: We have someone in here working with the video team. They’re looking at producing everything from 1-2 minute features, to short vignettes which appeal to community to longer documentaries; and obviously advertising with videos built into them.
SCVBJ: Can you be more specific, more detailed, about future plans?
SCVBJ: Any entity has to be profitable, but, how do you view the public service aspect of journalism?
Sproule: The problem we have with the existing website is the features and the functionality are not user-friendly. The way the content is conveyed to the user - whether it be photo, video, or print content – is pretty antiquated. Over half of our website visitors come in on a mobile phone so we’re going to want to make sure that whatever we do on that website, it is compatible with all types of mobile devices. That’s a high priority for us. We’re doing a complete overhaul.
Champion: When we cover the news we can’t care if it’s going to make us profitable or
SCVBJ: And, are you also building a new website?
In the recent past newspapers began trying i to cut their way to profitability. That’s like starving my own cow, not buying hay for it and hoping as a dairy farmer I can improve my profits. What happens with that strategy is the farmer ends up with a skinny cow that can’t even be taken to the slaughterhouse.”
The Board SCVBJ: Who is doing all this work?
Sproule: We’ve got five of our board members who have very strong IT/e-commerce backgrounds. They’re working with the management team here to develop that strategy, so we have some terrific horsepower if you will.
– Charles Champion, Chairman and CEO, Paladin Multi-Media Group, and Publisher of The Signal not, otherwise you subject it to fear and compromise. You have to have tremendous courage; you have to be willing to literally subject the business to the risk of bankruptcy. First, you want to position yourself as, and want to be, the first citizen of the community you serve. A news organization has a unique position in our society to focus the light of scrutiny on our public officials, and to hold them to the high standards they were elected to. Profit and fear of loss cannot enter into that equation ever. News formulation decisions, selection, coverage must always be divorced and separate from profit motives. If Katharine Graham of the Washington Post were still with us she would tell you that when she published the Pentagon Papers she did just that. God rest her soul. She understood newspapering. SCVBJ: What is your business plan? Sproule: Our business plan is based on growing top-line revenue. Most newspapers, including The Signal, have already done a pretty good job of taking expenses out by outsourcing printing or distribution. So our plan is really based on growing revenue as opposed to reducing manpower or taking costs out. The obvious key drivers are circulation and advertising revenue. The other significant opportunity is our whole digital strategy with a revenue model. We’re still working through it and we’re testing it now. We have a significant amount of unique visitors to our website every month which positions us well to do well on digital. We’re also building a brand new website which will have an email communication component to it. There will also be a video component. We’ll be basically focused on digital space for the first several months, because currently there is no revenue as we took down the paywall. SCVBJ: What are you doing with video? Champion: We’ll build out our video assets. In large measure, we’re story tellers of
SCVBJ: To that point, Paladin Multi-Media Group has built a very deep bench of talent on the Board of Directors. Are you planning to tap into this talent pool? Champion: It’s two-fold. They’re individuals who Gary, Russ and I have known for a long time. Their value systems are identical to our own, and their commitment to journalism is identical to ours. These members give us a group of people whose expertise we can draw upon that we could never afford as a small business and newspaper of this size. Secondly, it allows us scalability in terms of acquisitions; licensing of intellectual property; and programs that are successful here that can be replicated at other places. Sproule: It’s a diversified talent pool with a lot of depth and breadth and really a two-for-one. Initially it’s to tap into their expertise and also serve in an advisory role in addition to the traditional Board of Directors role. I don’t think there’s any other Board of Directors in the country that has the depth and breadth that this board has.
Sproule: We’ve got a lot of meat but we can’t share it publicly just yet because we don’t have agreements in place. We don’t want to create expectations we can’t deliver on or tip our hand too much until we have agreements secured. But, we would like to be in the position where every few weeks something comes up that’s of substance that we can release. SCVBJ: Is the acquisition of other types of media properties – building a portfolio – in the future? Sproule: Obviously. If and when we do something like that, no doubt we’ll be very successful here first which will get the attention of other community papers – who, at a minimum, will want to know and understand what we’ve done. It could open up a lot of doors because there are probably thousands of then in similar situations. Champion: Right now our plan is to take one day at a time and continue to add value and make the paper an integral part of the community and everyone’s everyday life. That has to be done to be successful. Other than that, we’re really only thinking in 36 to 60 month increments, but the longer we’re here the more we realize how much can be done. SCVBJ: Do you believe communitybased media groups have any particular advantage? Champion: Absolutely. Metropolitans or large regional dailies will struggle because they need to serve too many masters concurrently. This newspaper has the opportunity of being hyper-local with delineated content that can’t be found in other places. Briley: Community newspapers with local ownership enable you to decide on and implement projects very quickly without going through a lengthy process for approvals. If newspapers were ships in our U.S. Navy
There were a number of things that There made d purchasing the newspaper attractive – the history and legacy of the paper; it’s a great foundation to build on. Also, it’s the community. The demographics, the insulation from the Los Angeles basin, the quality of life in the community and the loyalty of residents have for their community is amazing. All of those are remarkable things to build a paper from.” – Gary Sproule, Chief Operating Officer/ Chief Financial Officer, Director, Paladin Multi-Media Group Inc., The Signal
The Future SCVBJ: Down the road, how do you see the Paladin Multi-Media Group morphing? Where do you hope to take it? Sproule: I don’t think we have a good
I would say large metropolitan newspapers would be like an Aircraft Carrier, while very powerful, just turning them around takes a lot of doing. Navy destroyers, which I liken to community newspapers, are more agile, See PALADIN, page 23
22
SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2016
Paladin Multi-Media Group Board of Directors and Officers
Charles “Chuck” Champion
Russ Briley
Gary Sproule
Chairman, Chief Executive Officer, Publisher
Executive Vice President, Audience Development and Community Affairs
Chief Operating Officer, Chief Financial Officer
GREG AVIOLI
JOSEPH BARLETTA
Executive Vice President, B-Spot; former President of the Breeders Cup LTD
Lawyer; former Chief Executive Officer at the San Francisco Newspaper Agency, TV Guide, Thomson Newspapers, and the New York Daily News; former Chief Operating Officer at Freedom Newspapers (Orange County Register)
THOMAS CULLIGAN
DOUG DELUCA
Managing Partner, The Howard-SloanKoller Group; former Chief Revenue and Marketing Officer, The Washington Times, Publisher of the Palo Alto Times; Executive Vice President General Manager of the Daily News of Los Angeles
DR. JEFFREY HOROWITZ Chief Technology Officer, Content.ad; former Chief Architect and Vice President, Production Operations, Publish This
Co-Executive Producer, Jimmy Kimmel Live
JOSHUA LANGDON Founder, Tower 28 Consulting; formerly Vice President, Advisory Services at Houlihan Lokey managing the firm’s valuation practice
JONATHAN BOURGOINE Chief Technology Officer, Mattel
HUD ENGLEHART
Managing Partner, Beacon Advisors; former Executive Vice President of Public Relations at Lockheed
JEREMY LAPPEN Managing Partner, Lappen Law; former President of ProElite
President and Editor of ChinaOnline. com; former Los Angeles Times Desk Editor, and National eEditor and Deputy Managing Editor for international, national, business and economic news; Editor-in-Chief and Executive Vice President for Chicago Sun-Times
DENNIS BRITTON
ROBERT BRIERLEY
CHRISTINE BUCKLEY
Chief Operating Officer and President, Aircuity
Founding Partner & Producer, Director, Writer; Ad Hoc Media Partners; former Senior Vice President Business Development at Lakeshore Entertainment
JANET FALESKI
NEW APPOINTMENT PENDING
Director, Franklin Square Partners; former Managing Director & Chief of Staff, ThinkEquity, LLC
WILLIAM MOMARY
Senior Vice President, Content at IZEA; former Co-Founder and CEO of Ebyline purchased by IZEA
HARVEY HILL Associate Publisher of the Chronicle of Higher Education; former Senior Executive at the New York Times, Washington Post, USA Today and Philadelphia Inquirer – Daily News
ANDREW PAYNE
JEFFREY STEWART
Email Marketing Manager, Fender Musical Instruments; formerly eCommerce Manager at Filmtools; Online Marketing Manager, IPTV International
Chief Executive Officer, Creative Capital Group
MARCH 2016
SANTA CLARITA VALLEY BUSINESS JOURNAL
23
■ Paladin’s first onsite and via conference call board meeting. Seated from left, Russ Briley, Charles Champion, Gary Sproule. Standing from left, Thomas Culligan, William Momary, Dennis Britton, Jeffrey Stewart, Jeremy Lappen, Christine “Kee Kee” Buckley, Jeffrey Horowitz, Jonathan Bourgoine. Photo by Dan Watson.
PALADIN
Continued from page 21 versatile and can get a lot done quickly. Sproule: There’s a void in many communities as major papers have pulled back and covered less and less news. It creates a real opportunity for community newspapers. SCVBJ: How does that role translate into being profitable? Champion: We have a financial focus, but it’s not the sole driver and not done with control as a principle function. It’s used as a guide, much like a road trip. There are things that will divert you off the road. There’s no way to completely eliminate all the risks and ensure success. You have to have adaptability, have situational awareness and not be afraid to try and fail - fear of failure stifles many great businesses. Briley: If this was based strictly on financial gain I wouldn’t have been interested. Champion: We could have invested in something else far more profitable, with a greater financial return. This is about building a business in a critically important space. Simply to make it financially viable to do the work is nice, but I’m a big believer in Jefferson who said “If I have to choose between government and newspapers, I’d choose newspapers” because you cannot have a free society, a thriving democracy, without what media does.
Other Turnarounds SCVBJ: Okay, so as investors you’ve acquired or turned around other companies. What do you cite as your most successful turnaround,
and what was the most difficult? Sproule: Youbet.com was a publicly traded online horse wagering site the only type of wagering that was allowed by federal law to be conducted online... We (Chuck and Gary) were hired to come in as CEO and CFO. It was probably the most challenging turnaround I’ve ever done. There was six
extremely rewarding for the shareholders and employees.
efforts. How do you go about getting your arms around all of this at once?
Champion: That was a success story. The company was burning through $500,000 a month with only $750,000 in the bank. It had 80 employees and was being delisted by NASDAQ. Virtually everyone believed it was going to go bankrupt in a matter of weeks. It was difficult, sure. We ended up laying off 22 people in the first two weeks through voluntary layoff, but all of them got generous severances. You take care of your employees and your employees will take care of you. The competitor was ten times larger. When we started we transacted $90 million in wagers and when we finished we were placing over a billion dollars in pari-mutuel pools. After we left, it was eventually sold to Churchill Downs for $128 million, although its value peaked much higher.
Champion: There are three of us. Each one has different segments of the responsibilities and we’re accountable for delivering on these priorities. We’re accountable to each other, to the 39 people who work here, and to the 280,000 people who live here in the valley. We talk constantly during the course of day, coordinating activity in virtual real time. Tactical decision-making is flattened considerably, decisions are made almost instantaneously.
Comm Community newspapers with local ownership enable you to decide on and implement projects very quickly without going through a lengthy process for approvals. If newspapers were ships in our U.S. Navy I would say large metropolitan newspapers would be like an Aircraft Carrier, while very powerful, just turning them around takes a lot of doing. Navy destroyers, which I liken to community newspapers, are more agile, versatile and can get a lot done quickly.”
SCVBJ: You have taken on a lot at once – acquisition of the media group, needing to find new office headquarters, bringing in new benefits, operating systems, online and digital tools, revamped website, building up the sales, marketing and editorial
– Russ Briley, Co-Owner, Paladin Multi-Media Group, and Executive Vice President of Community Relations and Audience Development of The Signal weeks of cash left in the company and they would have to shut their doors. We ended up taking the market value from $8M to $238M in three years. It was hard, but
Herculean Task
Sproule: The three of us sit down daily, and discuss the priorities. We as a company can’t do all these things immediately so we identify those activities where we can create the most value and build from there. And we make sure what we do is consistent with what we built into the five-year business plan. Champion: We very much believe in the old concept of plan your work, and work your plan, but our plan is also very flexible. We had the first 60 days in the can before we ever bought the newspaper. Sproule: I’m very fortunate to have two great partners who believe in working very hard, and playing hard. There is a great bunch of employees here; we couldn’t have asked for any better transition. We know we have to earn the trust of the employees and that it takes time, but we do it by walking the talk and doing things like meeting expectations. Slowly, over time, we will earn their trust. My job is air traffic controller. While my partners are out in public putting deals together. I’m the guy who implements them, makes sure they work and that we achieve the targets. ■
24
SANTA CLARITA VALLEY BUSINESS JOURNAL
THE LIST
MARCH 2016
Digital Media Firms (Ranked by No. of Employees)
Company Name
First Name
Last Name
Title
Arvado Digital
Address
City
Zip
Employees
29011 Commerce Center Drive
Valencia
91355
382
Deluxe Digital Media Mgt Inc
Michael
Alverez Sr
Manager
29125 Avenue Paine
Valencia
91355
165
Vision Media Management
Scott
Wenrich
Managing Partner
29125 Avenue Paine
Santa Clarita
91355
100
Wayforward
John
Beck
Chief Executive Officer
28738 The Old Road
Santa Clarita
91355
100
Atk Audiotek Corp
Michael
Macdonald
Owner
28238 Avenue Crocker
Valencia
91355
72
Andrews Electronics
Dan
Balor
Vice President
25158 Avenue Stanford
Valencia
91355
50
Hi Torque Publications
RS
Hinz
President
25233 Anza Drive
Valencia
91355
50
Mye Entertainment Inc
Anthony
Garcia
President
25129 The Old Road Ste 305
Stevenson Ranch
91381
45
Richard Photo Lab
Brian
Greenberg
CEO
28022 Industry Drive
Santa Clarita
91355
39
Santa Clarita Studios
Mike
Delorenzo
President
25135 Anza Drive
Santa Clarita
91355
27
Technifex Products Llc
Montgomery
Lunde
Member
25261 Rye Canyon Road
Valencia
91355
25
The Attraction Services Co., Inc.
Melissa
Townsend
25625 Hercules Street
Santa Clarita
91355
19
Mobiltape Company Inc
Michael
Zeilinger
President
24730 Avenue Tibbitts Unit 170
Valencia
91355
15
Av West Llc
Fred
Scripture
Member
19965 Rhona Place
Santa Clarita
91350
11
Big Fish Audio Inc
Tom
Meadows
President
29033 Avenue Sherman
Santa Clarita
91355
11
Alpha & Omega Entertainment
Branden
Morris
Owner
24451 Mira Vista Street
Valencia
91355
10
Alpha Sound & Lighting Co
John C
Virden
President
24846 Avenue Rockefeller # 100
Valencia
91355
10
Baby Prodigy Co
Barbara
Marcus
Owner
25852 Mcbean Pkwy Ste 732
Valencia
91355
10
Background Images Inc
Dan
Ellis
President
28908 Avenue Paine Unit B
Valencia
91355
10
Caravan West
Peter
Sherayko
Owner
35660 Jayhawker Road
Santa Clarita
91390
10
Cort Howell Productions
Cort
Howell
Owner
28328 Constellation Road
Santa Clarita
91355
10
Golden Oak Ranch
Steve
Sligh
Manager
19802 Placerita Canyon Road
Newhall
91321
10
Vista Electronics Inc
Ron
Schwab
Owner
28472 Westinghouse Place
Valencia
91355
10
West Coast Water Tenders Attraction Media & Entrmt Inc
Andrew Jon
Sarvis Corfino
Director President
34855 Petersen Road 25597 Via Velador
Santa Clarita Valencia
91390 91355
10 7
Krainin Productions Inc
Julian
Krainin
President
25211 Summerhill Lane
Stevenson Ranch
91381
6
Hollywood Fires Inc
George A
Sack
President
12059 Davenport Road
Santa Clarita
91350
5
Barron Entertainment Inc
Hifumi
Bell
President
30522 Terraza Court
Castaic
91310
4
Valencia Production Partners
Jim
Piccirillo
Owner
28312 Constellation Road
Valencia
91355
4
Veluzat Motion Picture Ranch
Rene
Veluzat
Owner
28100 Haskell Canyon Road
Santa Clarita
91390
4
Welch Group Corporation
Kory L
Welch
President
28402 Constellation Road
Valencia
91355
4
Cashman Commercials Inc
Marc
Cashman
President
26136 N. Twain Place
Stevenson Ranch
91381
3
AH2 LLC
Jeffrey S
Lippencott
Principal
28322 Constellation Road
Valencia
91355
2
Capital Arts Entertainment
Rob
Kerchner
President
23315 Clifton Plaza
Valencia
91354
2
David Vanacore Productions
David
Vanacore
President
27734 Avenue Scott
Valencia
91355
2
Melody Ranch
Andre
Veluzat
Partner
24715 Oakcreek Ave.
Newhall
91321
2
Povletich Productions Inc
William
Povletich
Principal
25876 The Old Road Ste 249
Stevenson Ranch
91381
2
Precision Turntable Services
Royce
Hager
Partner
28155 La Veda Ave.
Canyon Country
91387
2
Sos Film Works
Robert
Harris
Principal
34855 Petersen Road
Agua Dulce
91390
2
Sound Sculpture Inc
Ben
Herrington
President
25876 The Old Road 194
Stevenson Ranch
91381
2
Thomas Smith Productions
Thomas
Smith
Principal
25852 Mc Bean Pkwy #1101
Valencia
91355
2
View Factor Studios Llc
Joshua
Vonbabinski
28231 Avenue Crocker
Valencia
91355
2
Western Electro Acoustic Lab
Gary
Mange
Director
25132 Rye Canyon Loop
Santa Clarita
91355
2
50'S Town
Rene
Veluzat
Owner
28100 Haskell Canyon Road
Saugus
91322
N/A
Big Bad Tomato & Outlyer
Robert
Bruza
22704 9th Street
Newhall
91321
N/A
Blue Cloud Movie Ranch
Rene
Veluzat
20000 Blue Cloud Road
Saugus
91350
N/A
California Institute Of The Arts
Steven
Lavine
24700 Mc Bean Parkway
Valencia
91355
N/A
Lifton Institute Of Media Arts & Sciences
Jimmy
Lifton
27567 Fantastic Lane
Castaic
91384
N/A
Polsa Rosa Ranch
Karen
Bryden
5726 Soledad Canyon Road
Acton
93510
N/A
Rustic Oaks Ranch
Mike
Stuart
23708 La Salle Canyon Road
Newhall
91321
N/A
Sable Ranch/Rancho Mario
Derek
Hunt
25933 Sand Canyon Road
Canyon Country
91387
N/A
Sanna Ranch
John
Sanna
10002 Soledad Canyon Road
Agua Dulce
91390
N/A
Santa Clarita Valley Locations
Cindy
Brady
25141 Rye Canyon Loop
Santa Clarita
91355
N/A
Spydercam
Todd
Semmes
28130 Avenue Crocker #322
Valencia
91355
N/A
Stickleback River Ranch
Carey
Lee
9777 Soledad Canyon Road
Santa Clarita
91390
N/A
Valencia Studios
Gil
Berkovich
26030 Avenue Hall
Santa Clarita
91355
N/A
President
Principal
President
SOURCE: Santa Clarita Valley Economic Development Corp.
MARCH 2016
SANTA CLARITA VALLEY BUSINESS JOURNAL
25
VALLEY INDUSTRY & COMMERCE ASSOCIATION VICA
Stuart Waldman
SCVBJ
I
n the Valley Industry and Commerce Association’s (VICA) everlasting effort to make California more business-friendly – the latest bill aimed at employers’ bottom lines from Sacramento is an especially troubling obstacle from the Capitol. Assembly Bill 67 is another legislative effort that will once again make the regulating environment in California that much harder for businesses to remain competitive, and puts a meaningless obstacle in front of the consumer. AB 67 harms businesses by placing a requirement that California employers pay employees twice their hourly rate on Thanksgiving, regardless of the number of hours the employee worked – if the company has more than 500 employees in California. For the moment, we’ll look past the arbitrary nature of selecting Thanksgiving as the only occasion on the calendar singled out as a “holiday” for the purposes of pay periods. Those who love last-minute shopping will be happy to know Christmas was removed from the bill, and for some reason, July 4, Easter, Passover and President’s Day never made it for consideration. It’s inconsistent, but that’s not even close to the most problematic aspect of this bill. This law wants to force everyone to stay home on Thanksgiving, or make you really pay if you do want or need to go out. This bill is clearly a punishment for large,
When It’s Time for a Holiday from Sacramento Meddling successful businesses. Forcing this wage mandate on successful companies doesn’t create equity for all employers and employees. Sure, it places a punitive slap on the wrist to every big business that we rely on to remain open. But by and large, nearly every major retailer already provides some sort of extra compensation to its employees for holiday hours – despite the fact that some of these employees were only hired to work the holidays. And what many might not realize is that it’s also a punishment for the working man and woman, because when you take away their employers’ choices, you’re also punishing the employee who won’t have the decision to take the day off – because the boss decides it’s just not worth it stay open. And the customer who can’t get a much-needed supply during a last-second store run – is also out of luck if AB 67 passes. And raising the cost of doing business one day of the year will do little to discourage holiday shopping, which, for some reason, many feel we need to curb. No, this move will only raise the cost of doing business one day a year. So, the person to whom this wage mandate really affects is, of course, as always, the consumer. Because that’s exactly whom will shoulder the burden for this increased cost -- not to mention the increased inconvenience for those who do find their favorite store closed. Because if AB 67 is passed, the shop owner
won’t be able to offer an employee an extra day off for working a holiday, or time and a half, or some other consideration or compromise that not only takes into account the needs of both the employer and the employee – but is also affordable so the employer can afford to¬ stay in business. AB 67 won’t help business owners or their potential employees, because if a business owner can’t afford to pay employees double their salary and has no other options, then the store or business will be forced to close
– as if it isn’t hard enough already to operate retail store. Sacramento needs to start doing things for business, not just to them, if we want to keep the companies we have and try to attract new ones. ■ The mission of the Valley Industry & Commerce Association (VICA) is to enhance the economic vitality of the greater San Fernando Valley region by advocating for a better business climate and quality of life. Visit www.vica.com for more information.
R EAL CLEAR BUSINESS A DVICE BUSINESS CONSULTING Ken Keller
SCVBJ
Dear Ken Keller, Imagine you own a company where every employee is happy, hard-working, satisfied with the pay they receive, customers are delighted and your bottom line is plentiful. I have this dream every so often, and then I wake up to face another day of frustration and struggle. What can I do to get my employees more engaged in their jobs? I ask for ideas, and no one has any. I see things that people should be doing and ask why they aren’t getting done. I pay good salaries to people I think should be contributing more, but they aren’t. I am amazed at how long it takes for people to get things done. It is getting to the point where I think I am the only one in the company who has a sense of urgency. Am I wrong to be so frustrated with what is going on? You’re a consultant, do other companies have the same issues and if so, what do those owners do about it? –Jim R. Dear Jim: This is a common issue with owners, CEOs and entrepreneurs. The leaders have a clear vision, and wonder why their employees see something different. You are working hard for more than a paycheck. You are working to achieve a goal for yourself, your family and your company. You
Are You Frustrated With the Lack of Urgency At Your Company? have a lot on the line financially. When you wake up in the morning, you likely jump out of bed and can’t wait to get started working towards that dream, that goal. Your employees’ experience is quite different. They don’t see the same things that you do; they don’t have the same emotions you do about the company. They have a different perspective about why they are there, working for you. If they wanted to be owners, they would have started their own companies. Instead, they work for you. They do this because they receive a regular, steady paycheck. You may also receive a paycheck, but your hope is that there will be a big payoff when you sell the company. Your employees won’t be getting that same payout and aren’t totally invested in that big day down the road. Understand that most people who are owners make lousy employees working for someone else and that most employees are never going to be owners or have the ownership mindset. But what you can do is make some behavioral and communication changes that will improve the morale of the company you lead. The first is for you to understand what dreams your employees have. It may be buying a new car, taking a special vacation, buying a home, or having extra time off to do
something they have always wanted to do. If you engage in helping your employees achieve their dreams they might be more invested in helping you achieve yours. Second, far too many owners, without blinking an eye, talk to everyone about “my company.” They can’t wait to say “I’m the owner.” Instead, use the word “we” and “our.” Rid yourself of “I” and “my.” Third, hold back on telling people what to do. Teach people what you want them to do, make your expectations clear, and then follow-up to make sure it is done. This takes
time and patience, something lacking in many leaders. But there is a payoff. If you want your employees to change, you will need to change first. ■ Ken Keller is the CEO of Strategic Advisory Boards. Strategic Advisory Boards guides leaders to their desired future through use of peer perspective, best business practices and leadership tools while reducing risk and unnecessary expense. For a complimentary leadership assessment, please visit www.strategicadvisoryboards.com/. Keller’s column reflects his own views and not necessarily those of The SCVBJ.
26
SANTA CLARITA VALLEY BUSINESS JOURNAL
MAECH 2016
Valley Industry Association 25030 Avenue Tibbitts | Suite K | Valencia, CA 91355 | (661) 294-8088 | www.via.org | Content provided by VIA
VIA Luncheon Planning Calendar 2016 SPEAKER SERIES Luncheons begin at 11:45 a.m. at the Valencia Country Club, 27330 North Tourney Road in Valencia unless otherwise noted. Business professionals interested in attending should plan to reserve their seat well in advance. Reservations and payment can be made at www.VIA.org/Calendar or by contacting the VIA office at (661) 294-8088.
Tuesday, March 15
Chancellor Dianne G. Van Hook, Santa Clarita Community College District, provides insights that are on the horizon for College of the Canyons.
Welcome to New VIA Members! VIA is growing and we’re proud to add these new members to our organization. Welcome to Santa Clarita’s premier business and industry connection!
Bank of America Merrill Lynch James Munter 15821 Ventura Blvd., Suite 430 Encino, CA 91436 James.munter@baml.com
Enterprise Rent-a-Car Brittney Bustamante 199 W. Hillcrest Drive Thousand Oaks, CA 91360 e667hv@erac.com
NAI Capital
Matt Sreden 17451 Tourney Road, Suite 200 Valencia, CA 91355 msreden@naicapaital.com
Pam Ingram & Co., Re/Max of Santa Clarita Pam Ingram 25101 The Old Road Santa Clarita, CA 91381 (661) 312-4428 pamingram@pamingram.com
Regus “Flexible Office Space Solutions” Javier Garcia 25350 Magic Mountain Parkway, Suite 300 Valencia, CA 91355 (818) 288-5152 Javier.garcia@regus.com
WSI Internet Consulting Alison Lindemann 27433 Tourney Road, Suite 280 Valencia, CA 91355 alison@wsiebiz.com
Membership at the heart of VIA
N
ow celebrating its 35th year, membership has always been and forever will be at the heart of the Valley Industry Association. Think of VIA as a living, breathing organization that adapts to change but is solid in its core mission: To connect and build Santa Clarita Valley industry. Over the past three and one-half decades, VIA has collaborated with regional organizations to form strategic partnerships that expand its focus and networking capabilities and strengthened areas of influence even reaching beyond the valley’s borders at times, and all for the purpose of creating greater value for members.
Why join VIA? It may not be rocket science (although we have several scientists within our ranks), but it makes good business sense to allocate limited marketing dollars where you get the most “bang for your buck”. Depending on the size of your business or organization, VIA membership can be less than $1 per day. As a member, you receive special member rates for programs, training and events, discounts on sponsorships and exhibit space at VIA’s signature business-to-business event, and a competitive advantage in developing business within the area’s industrial centers.
TOP SEVEN REASONS TO JOIN VIA TODAY 1. Visibility. The expression “out of
sight means out of mind” has never been more relevant than now during this postrecession era. VIA members who attend events and participate in business-related activities maintain visibility with business professionals in the community. The more others know about your business, the better informed they are on ways to support your company. 2. Access to Community Leaders and Elected Officials. When joining VIA and taking the next step to become actively involved, you’ll soon discover that meeting prospects who may have an interest in your company or who can refer you to the key contacts you’re trying to reach is a huge benefit of membership. Whether volunteering to serve on a committee or attending specific events where prospects are likely to be, you’ll find yourself in situations where you can identify and meet decision makers face-to-face. 3. Ongoing Training, Education & Professional Development. VIA offers leadership training for members through its Leadership Academy and sales training through the Sales Academy. VIA offers additional training and education periodically throughout the year on a variety of topics. Sensitive to the time constraints every business person has, VIA keeps members updated, informed and educated on issues affecting the local business community in the most concise and timesaving ways possible. 4. Networking. VIA offers a variety of
Before you check out, check in
W
hat if donating to a charitable cause was as easy as shopping for groceries? What if the process was so automatic, seamless and painless that you only had to think about it ONCE a year? Well, here it is. The Ralphs Community Contribution Program has recently named the VIA Education Foundation as an eligible organization. If you are a VIA member, friend or supporter, between 1 to 4 percent of eligible purchases at Ralphs will be donated to the foundation once you sign-up and link your Ralphs Reward Card. There are a few purchase exclusions -- like alcohol, tobacco and fluid milk, to name a few – but not many. Don’t have a card? Ask a cashier on your next store visit or register
online at Ralphs.com. There is no cost to join. And don’t worry; due to Ralphs privacy policy your information will not be shared with anyone. To learn more, contact the VIA office or visit Ralphs.com and click on Community > Community Contributions on the top navigation bar to search and select an eligible nonprofit. Once your rewards card is linked, just shop, swipe your card at check out to earn money for your designated recipient. As always, the VIA Education Foundation is grateful for all that its members, friends and supporters do to provide for the organization. Their support helps fund more than 2,500 local students each Fall to attend Connecting-to-Success. ■
venues and opportunities to meet new people and always maintain visibility. From seminars, monthly luncheons, the VIA B2B Show, VIA Rocks Networking Mixers, the annual VIA Bash gala, membership referrals and various business committees, there’s ample ways to meet new contacts, referrals and people who can help you with ideas and additional ways to increase the visibility and goals of your company. 5. Low cost advertising opportunities. Whether you have a large or small marketing budget, VIA offers a wide range of affordable advertising options and sponsorship packages to fit almost every budget. VIA offers news and advertising opportunities through its web and digital assets, newsletter, marketing flyer opportunities at the monthly luncheon, sponsorship opportunities at various events, and exhibitor opportunities to showcase your business at the annual VIA B2B Show. 6. Advocacy. VIA researches, lobbies and routinely discusses with local and regional government units, politicians and the media issues that are relevant to the needs, goals, and challenges of the business community. VIA keeps their membership up-to-date on central issues of importance pertaining to its membership and the community. 7. Credibility. As a member of VIA, your business will be viewed as a reputable and professional organization that is connected to its business community. ■
VIA MEMBERSHIP BY INDUSTRY Aerospace BioMed / BioTech Entertainment Manufacturing Media Professional Services Utilities
MARCH 2016
SANTA CLARITA VALLEY BUSINESS JOURNAL
Economic Development Corporation Santa Clarita Valley
Content provided by
26455 Rockwell Canyon Road | UCEN 263 | Santa Clarita, CA 91355 | (661) 288-4400 | www.scvedc.org
2016 Outlook: Housing and Industrial/ Office Projects Vital to Local Economy apartments is very strong, and is likely to continue through this year. The weakness in the region is the lack of much new detached housing. There has been a flurry of apartment projects started. More industrial and office projects also need to start to sustain the demand for the future growth of employment. Salaries continue to grow – over the past year, they have increased much faster than the rate of inflation, implying a tight labor market.
What’s unique about SCV region when compared to other cities in California?
M
ark Schniepp, Director of California Economic Forecast, will give a talk titled “The 2016 Forecast for the Santa Clarita Valley” at the 2016 Outlook Event. In advance of the March 10 event, he shared his take on the local economy.
Looking back, how did Santa Clarita Valley region perform in 2015? The regional economy of Santa Clarita participated in the broader expansion of the Southern California economy in 2015. There was significant job creation, in-flow of companies as well as growth of existing companies. Tightening office vacancy, higher home sales and home prices, and higher utilization of the lodging sector were also indicative of the robust 2015 economy. The industrial market is also very tight.
As you prepare the 2016 forecast, what are the key factors you are looking at? We expect more of the same in 2016. The trend now is that the national and state economies are experiencing solid growth. This is going to be a continued key factor for 2016. Demand for tech products and services is very strong. Demand for
The region has a very diverse economy but the strength of its industrial sector contributes to a vibrant economy during expansionary times. The workforce is highly educated and the community tends to be more affluent than other most other communities in the greater region. Critical to the Valley’s economy is the need to develop more housing. Every project is important now that the ultimate development of Newhall Ranch has been pushed back. Without adequate housing for both the workforce and the executives, employers will not be able to attract more workforce to the region. The unemployment rate for the Valley economy is estimated currently at 5.3 percent. This is nearly full employment. Consequently, if employers are to grow, they will need to attract more workers into the area. Unless housing is made available, traffic on the highways will only become more congested over time.
SCVEDC in 2015: Facilitate Growth and Deliver Results Measured by years, the Santa Clarita Valley EDC is a young organization. The year 2015 marked its sixth year of existence. Thanks to the sound advice and hard work of our Board of Directors, our 2015 achievements are further evidence that SCVEDC is becoming more productive and influential each year, especially in
the following four areas: ATTRACT: When it comes to recruiting high-value companies, SCVEDC in 2015 helped attract 33 companies to the Santa Clarita Valley who were expected to create a total of 1845 jobs, 75% of which were in our target business clusters of Aerospace & Defense, Medical Devices, Advanced Manufacturing, Information Technology, as well as Digital Media & Entertainment. GROW: Convinced that it is much easier to retain existing companies than to attract new prospects, SCVEDC continued to expand its Business Assistance program, introducing SCV companies to various incentive and support programs that can help them grow. We also completed our second annual business “blitz”, in partnership with
SAVE THE DATE
March 10, 2016 1:30 – 5:00 pm, followed by cocktail reception To get tickets for the event, please visit www.scvedc.org/outlook
Econo Watch Santa Clarita Valley
Source: Santa Clarita Valley Economic Development Corporation
Q4 ’15
Q3 ’15
Q4 ’15 Sq Ft
Commercial Vacancy Rates Office Space
10.20%
12.20%
582,345
Industrial Space
2.70%
2.50%
530,150
Retail Space
5.60%
4.90%
696,152
Total Marked Sq. Ft. Vacancy Percentage Office Space - as a % of Vacancy
32.20%
19.00%
N/A
Industrial Space - as a % of Vacancy
29.31%
50.90%
N/A
Retail Space - as a % of Vacancy
38.49%
30.11%
N/A
Jan ‘16
Dec ‘15
Jan ’15
Commercial/Industrial Building Permits
0
0
0
Residential Building Permits
14
11
7
Building Permits
VIA and the Chamber. MARKET: We continued to promote our tag line “Still Golden”, a registered trademark. In addition to promoting SCV through all types of communication channels, we also participated in trade shows closely associated with our target business clusters. Given the pivotal position occupied by brokers and site selectors, our focus on this segment continued to pay off. INFORM: Serving as an information center for businesses is a key role for the SCVEDC, and we continue to use our annual economic Outlook conference to disseminate authoritative economic data about the Santa Clarita Valley, and in the process, have established EDC as the go-to information source for the business community. ■
Local Company Stock Prices Bank of Santa Clarita (BSCA) Mannkind (MNKD) California Resources Corp California United Bank Carnival Corp. (CCL) Mission Valley Bank (MVLY) Six Flags * (SIX) Woodward (WWD) Lennar (LEN)
Jan ‘16 10.05 1 1.43 22.85 48.13 8 50.27 49.19 42.15
Dec ’15 9.9 1.45 2.33 25.36 54.48 9 54.94 49.66 48.91
% Change 1.52% -31.03% -43.17 -5.80% -11.66% -11.11% -8.50% -0.95% -13.82%
Unemployment Rates* Santa Clarita Palmdale Lancaster Glendale LA County State
Dec ‘15 Nov ’15 % Change 5.3% 5.2% -1.92% 7.8% 7.7% -1.30% 6.5% 6.4% -1.56% 5.6% 5.5% -1.82% 5.8% 5.7% -1.75% 5.8% 5.7% -1.75%
*Due to the late release of unemployment reates, the next edition will reflect January and February
27
28
SANTA CLARITA VALLEY BUSINESS JOURNAL
MARCH 2016
SCV CHAMBER OF COMMERCE 27451 Tourney Road | Suite 160 | Santa Clarita, CA 91355 | (661) 702-6977 | www.scvchamber.com | Content provided by the SCV Chamber
March Milestone Members
In partnership with:
25+ Years DALE’S Maintenance Service, Inc. Valencia Country Club Leslie G. Levy, D.P.M. Valencia Car Wash
5th District Supervisors Candidate Forum
20+ Years College of the Canyons Foundation Wesco Aircraft Hardware Corp. Valencia Production Partners Valley Industry Association
15 + Years
March 9, 2016
7:30 a.m. ± 9:00 a.m. Tournament Players Club at Valencia 26550 Heritage View Lane Valencia , CA 91381
Come and meet the 5 candidates vying for the seat left vacant with the retirement of long time 5th District Supervisor Michael D. Antonovich
Metal Plasma Technology Golden State Storage California Youth Chess League Classic Designs Jewelry SCV UCLA Cancer Center/ J. Barstis M.D.
10+ Years Trinity Classical Academy Moran Plumbing Fountain Supply Company Mission Valley Bank - Centre Pointe Branch Santa Clarita Concrete Storage Center of Valencia
5+ Years US Bank Charter College FountainGlen at Valencia Margolis-West Graphics College of the Canyons - Canyon Country Campus Berkshire Hathaway HomeServices Ca Prop- Phil & Joe Levy Nissan of Valencia Global Protective Services, Inc. Colliers International High Impact Event Resources
Ribbon Cuttings
Kathryn Barger (R)
Glendale City Mayor
Elan Carr (R)
Ara Najarian (R)
Senator Bob Huff (R)
City Councilman Mitch Englander (R)
Register & Pay on line at scvchamber.com Cost: $25 ± Breakfast is included
For more information contact the Chamber at 661-702~6977 ~ cramirez@scvchamber.com
Telephone: (661) 702-6977 | www.SCVCHAMBER.com 27451 Tourney Rd. Ste. 160 | Santa Clarita, CA 91355 | info@scvchamber.com
MARCH 2016
SANTA CLARITA VALLEY BUSINESS JOURNAL
29
Commercial, Industrial & Retail Real Estate (Cont. on pg. 30) Retail Buildings
Sq.Ft.
Sale/Lease
23329 Lyons Avenue
900, 3,600, 7,600
Lease
$1.65 SF/MO/NNN
Price
10,300
Lease
$1.25 SF/MO/NNN
Old Orchard Plaza
23154 Valencia Boulevard Valencia Mart
25830-25848 McBean Parkway
1,999 - 2,800
Lease
$2.50-$3.00 SF/MO/NNN
1,200
Lease
$1.25 SF/MO/NNN
Granary Square
21515 Soledad Canyon Road Golden Oak Plaza
26477-26557 Golden Valley Road
$2.75 SF/MO/NNN
Bank of America Tower Kevin Fenenbock (Colliers Int.) 661-253-5204
1,020 – 2,191
Lease
$1.85 SF/MO/NNN
27202, 27220 & 27240 Turnberry
Lease
$1.65 SF/MO/MG
900 – 3,250
Lease
$1.00 - $1.60 SF/MO/NNN
1,000
Lease
$1.25 SF/MO/Gross
1,350 – 1,907
Lease
$2.35 SF/MO/NNN
Riverview Plaza
25269 The Old Road
1,300 – 2,442
Lease
$1.50 SF/MO/NNN
Sunset Pointe Plaza
24003 Newhall Ranch Road
3,053
Sub-Lease
$3.35 SF/MO/NNN
Bridgeport Village Tim Crissman (Crissman Commercial Services) 661-295-9300
28207- 313 Newhall Ranch Rd.
1,275 - 8,090
Lease
$1.95 - $12.90 SF/MO/NNN
1,195 - 1,825
Lease
$2.75 SF/M0/NNN
Highridge Crossing
27923 – 59 Seco Canyon Rd.
1,500 - 1,600
Lease
$2.50 SF/M0/NNN
54,000
Lease
Negotiable
Seco Canyon Village
27095 McBean Parkway The Promenade John Cserkuti (NAI Capital) 661-705-3551
19045 Golden Valley Road. #115
4,040
Sub-Lease
$2.25 SF/MO/NNN
1,063 - 6,015
Lease
$1.50 SF/MO/NNN
4,350
Lease
$2.50 SF/MO/NNN
1,700 – 7,000 997 – 8,565 660 – 2,337
Lease Lease Lease
Negotiable $2.20 -$3.50 SF/MO/NNN $3.00 SF/MO/NNN
4,040
Lease
$2.25 SF/MO/NNN
The Vine at Castaic
23754 Valencia Boulevard Chris Munyon (NAI Capital) 661-705-3556
27630 The Old Road 24300 – 24305 Town Center Drive 24510 Town Center Drive Cody Chiarella (CBRE) 818-502-6730
27430 Golden Valley Yair Haimoff (NAI Capital) 818/742-1659
23922 Summerhill Lane
552 - 4,275
Lease
$2.35 SF/MO/FSG
776 - 6,130
Lease
$2.25 SF/MO/FSG
Valencia Oaks
23929 Valencia Blvd.
767 Lease $2.35 SF/MO/FSG
1,425 - 29,028
25020 - 25061 Avenue Stanford
990 - 4,281
Lease
$1.05-$1.75 SF/MO/FSG
2,810
Lease
$2.50 SF/MO/NNN
24501 Town Center Drive; Suite 103 27413 Tourney Road
1,290 - 3,243
Lease
$2.55 SF/M0/FSG
915- 5,206
Lease
$2.65 - $2.80 SF/M0/FSG
1,187 - 20,000
Lease
$2.75 SF/MO/FSG
1,500 - 8,000
Lease
$2.85 SF/MO/FSG
1,300 - 6,000
Lease
$2.25 SF/MO/NNN
Lease Lease
Negotiable Negotiable
Lease Lease
$1.35 SF/M0/NNN $1.35 SF/M0/NNN
Tourney Business Park
26650 The Old Road Westridge Executive Plaza Richard Ramirez (CBRE) 661-907-4639 The Commons at Valencia Gateway
25350 - 25360 Magic Mountain Parkway Gateway Plaza
24200 Magic Mountain Parkway VTC IV David Solomon (CBRE) 818-907-4628
27201 Tourney Road 982 - 5,032 Lease $2.35 SF/MO/FSG 23030 Lyons Avenue Neiditch Building
170 - 2,362 650
Branson Brinton (SCV Commercial) 818-414-7657
25161 Rye Canyon Road Mann Biomedical Park
Building #1 Building #2 Build-to-Suits also available
14,292 1,814
Craig Peters (CRRE) 818-907-4616 • Doug Sonderegger (CBRE) 818-907-4607
25115 Avenue Stanford
709 - 10,600
Lease
$1.75-$1.85 SF/MO/FSG
1,230 – 8,474
Lease
$2.65 SF/MO/FSG
Valencia Park Executive Center
28470, 28480, 28490 Ave. Stanford
Lease
$2.75 SF/MO/NNN
23734 Valencia Boulevard
2,900
Lease
$1.75 SF/MO/NNN
23838 Valencia Boulevard
1,512
Lease
$3.50 SF/MO/NNN
25078 Peachland Avenue
1,523 -1,860
Lease
$1.95 SF/MO/FSG + J
988-2,674
Lease
$2.50 SF/MO/NNN
1,000
Lease
$1.95 SF/MO/MG + E + J
1,205 - 8,944
Lease
$1.45 SF/MO/FSG + J
420 - 4,000
Lease
$1.10 SF/MO/NNN
1,842
Lease
$2.05 SF/MO/MG
540 576
Lease Lease
$2.00 SF/MO/MG $2.15 SF/MO/MG
720
Lease
$2.00 SF/MO/MG
948
Lease
$2.00 SF/MO/MG
Lease Lease Lease
$1.85 SF/MO/FSG $0.99 SF/MO/NNN $2.55 SF/MO/FSG
Valencia Financial Center Atrium Medical Building Peachland Medical Arts
23502- 23504 Lyons Avenue 1,051
Lease
$3.25 SF/MO/NNN
1,005-1,830
Lease
$1.95 SF/MO/MG
Lyons Plaza
23542- 23560 Lyons Avenue Plaza Posada Cameron Gray (NAI Capital) 661-705-3569
24961The Old Road
Office/Commercial Buildings
Matt Sreden (DAUM Commercial) 661-705-3552
Sq. Ft. 1,500
Sale/Lease
Price
Sale/Lease $2.00 SF/MO/NNN, $825,000
Kevin Tamura (Daum Commercial) 661-670-2001 • Ron Berndt (Daum Commercial) 661-670-2000 • Patti Kutschko (Daum Commercial) 661-670-2003
25322 Rye Canyon Road 25230 Avenue Stanford 26320 Diamond Place #110 26320 Diamond Place #170 26320 Diamond Place #200 26330 Diamond Place #190
25,200 5,000 2,332 2,332 5,562 3,460
Sale Lease Lease Lease Lease Lease
$6.8M $1.45 SF/MO/MG $1.10 SF/MO/NNN $1.15 SF/MO/NNN $1.55 SF/MO/NNN $1.15 SF/MO/NNN
1,685
Lease
$1.75 - $2.00 SF/MO/MG
Lease
$1.25 SF/M0/MG
Yair Haimoff (NAI Capital) 818-742-1659
22620 Market Street
Tim Crissman (Crissman Commercial Services) 661-295-9300
28455 Livingston Avenue
$2.15 SF/MO/FSG
Paragon Business Center John Erickson (Colliers Int.) 661-253-5202
Tim Crissman (Crissman Commercial Services) 661-295-3300
20605 Soledad Canyon Road
Lease
Summit at Valencia Kevin Fenenbock (Colliers Int.) 661-253-5204 • John Erickson (Colliers Int.) 661-253-5202
1,000
Baywood at Bridgeport Kevin Fenenbock (Colliers Int.) 661/253-5204
25065 – 25067 Peachland
$2.20-$2.55 SF/MO/FSG
$2.85 SF/MO/NNN
Bridgeport Marketplace John Cserkuti (NAI Capital) 661-705-3556
24125 Baywood Lane
Lease
Lease
Plaza Del Rancho
24021 Newhall Ranch Road
1, 758 - 22,919
1,195
Valencia Village
27544 Newhall Ranch Road
$2.15 SF/MO/MG
Valencia Corporate Plaza Craig Peters (CBRE) 818-907-4616 • Richard Ramirez (CBRE) 818-907-4639 • Robert Valenziano (CBRE) 818-907-4663
Summerhill Village
27560 Newhall Ranch Road
Lease
Valencia Executive Plaza
The Plaza at Golden Valley
31675-31783 Castaic Road
23822 Valencia Blvd.
25152 - 25154 Springfield Court
Gateway Village
28112 - 36 Newhall Ranch Rd.
736 - 2,208
Craig Peters (CBRE) 818-907-4616 and Sam Glendon (CBRE) 818-502-6745
San Fernando Plaza
26865 – 26889 Sierra Highway
$1.80 SF/MO/FSG+
Sunset Pointe Plaza
Lease
Wayman Court
23638 Newhall Avenue
25129 The Old Road
1,479 – 2,074
500 – 6,000
Price
Lease
Tourney Pointe
$2.00 SF/MO/NNN
Old Town Newhall Properties
23120 – 23130 Lyons Avenue
27200 Tourney Rd.
Lease
Sutter Point Plaza Patti Kutschko (Daum Commercial) 661-670-2003
Sale/Lease
Valencia Atrium
2,250
The Plaza Golden Valley
24254 – 24409 Main Street
28494 Westinghouse Pl.
$2.50 SF/MO/NNN
Canyon Square
700 & 900
John Erickson (Colliers Int) 661-253-5207 • Chris Erickson (Colliers Int) 661-253-5202
Lease
18597 – 18607 Soledad Canyon Road
27737 Bouquet Canyon Road
28001 Smyth Drive
1,022
Centre Pointe Marketplace
19923 – 19931 Golden Point
Office/Commercial Buildings (cont.) Sq. Ft.
5,600
Doug Sonderegger, (CBRE) 818-907-4607 • Sam Glendon (CBRE) 818-502-6745
2405 Chestnut Street
The Chestnut Building Jeff Lui (SCV Commercial Real Estate Services) 661-478-5227
22800 Lyons Avenue The Tanner Building
24303 Walnut Street
Tim Crissman (Crissman Commercial Services) 661- 295-9300
27502 Avenue Scott 28546 Constellation Road 27413 Tourney Road
3,893 5,734 1,290
Craig Peters (CBRE) 661-907-4716 Richard Ramirez (CBRE) 661-907-4639
24840 Avenue Stanford, #300 Richard Ramirez (CBRE) 661- 907-4639
6,187
Lease
Negotiable
30
SANTA CLARITA VALLEY BUSINESS JOURNAL
FEBRUARY 2016
Commercial, Industrial & Retail Real Estate Office/ Medical Buildings 25775 McBean Parkway 25880 Tournament Road
Sq. Ft.
Sale/Lease
1,201 – 6,682 1,043 – 4,559
Lease Lease
Price $2.76 SF/MO/NNN Negotiable
Cody Chiarella (CBRE) 818-502-6730 • Troy Pollet (CBRE) 818-907-4620
25050 Peachland Avenue 8
00 – 4,000
Lease
$2.20 SF/MO/NNN
Patti Kutschko (Daum Commercial) 661- 670-2003 Matt Sreden (Daum Commercial) 661 705-3552
Land (Commercial, Industrial & Retail) SWC Golden Valley Rd./Centre Pt. Pkwy.
Acres Sale 1.5
Sale
$27.17 SF ($2.3M)
149.0 (Com.)
Sale
$0.61 SF ($3.9M)
1.7 ac.
Sale
$22.50 SF
Randy Cude (NAI) 661-705-3553
SEC Newhall Ranch Rd. & Rye Canyon Rd.
Craig Peters (CBRE) 818-907-4616 • Doug Sonderegger (CBRE) 818-907-4607
SWC Copperhill Drive & Rio Norte
8.65
Sale
$22 SF
West Creek John Z. Cserkuti (NAI Capital) 661-705-3551
Placerita Canyon Road
9.9
Sale
$7.42 SF/$3.2M
38.26 148.75 14.5 38.30 10,743
Sale Sale Sale Sale Sale
$2.11 SF/$3.5M $0.60 SF/$3.9M $3.48SF/$2.2M $0.37 SF/$629,000 $55.75SF/$599,000
1.19 1.90 2.29 2.67 3.86 4.96 6.15
Sale Sale Sale Sale Sale Sale Sale
Industrial Buildings
Sq. Ft.
Sale/Lease
27778 Avenue Hopkins
39,474
Lease
$21 SF/$1.1M $23 SF/$1.9M $21 SF/$2.1M $21 SF/$2.5M $21 SF/$3.5M $21 SF/$4.5M $21 SF/$5.6M
Price $0.58 SF/MO/NNN
Kevin Tamura (Daum Commercial) 661-670-2001 • Ron Berndt (Daum Commercial) 661-670-2000
5,404
Sale
$215 SF/$1.1M
Matt Sreden (NAI Capital) 661-755-6654
25334 Avenue Stanford 28305 Constellation Road 28338 Constellation Road 26450 – 25470 Ruether Avenue 28452 Constellation Road 28506 Constellation Road 28486 Westinghouse Place #110 26340 Diamond Place
17,775 6,766 3,320 2,089 3,180 4,595 7.513 2,154
Sale Sale Lease Lease Lease Lease Lease Lease
$123 SF ($2.2M) $185 SF($1.3M) $0.90 to $1.15 SF/MO/NNN $0.99 SF/MO/NNN $0.85 SF/MO/NNN $0.89 SF/MO/NNN $0.89 SF/MO/NNN $1.50 SF/MO/NNN
13,045
Lease
$0.75 SF/MO/NNN
17,000
Lease
$0.75 SF/MO/MG
14,536
Lease
$0.79 SF/MO/NNN
7,584
Lease
$0.70 SF/MO/NNN
Yair Haimoff (NAI Capital) 818-742-1659
24820 Avenue Tibbitts
Pamela Verner (SCV Commercial) 661-714-5271
29023 The Old Road Richard Ramirez (CBRE) 818-907-4639
27525 Newhall Ranch Rd.; Unit 9 Nigel Stout (JLL) 818-531-9685
28478 Westinghouse Place 8,284 25615 Hercules 17,455 27795 Avenue Hopkins 10,214 26074 Avenue Hall 1,561 - 3,131 26943-26951 Ruether Ave. 2,025 28430 Witherspoon Pkwy. 37,766 25040 Avenue Tibbits 1,440 28212 Kelly Johnson Pky. 1,244 25215 – 25217 Rye Canyon Road 24,048 - 12,048 28368 Constellation Rd., Bldg C, Unit 360 4,017 26074 Avenue Hall, Unit #5 3,131 Unit #12 3,082 Unit #21 3,177
Lease Lease Lease Lease Lease Sale/Lease Lease Sale Lease Sale Lease Lease Lease
$0.63 SF/MD/MG $0.59 SF/MO/IG $0.55 SF/MO/NNN $0.90-$1.00 SF/MO/IG $0.79 SF/MO/IG $139.00/$0.59 SF/MO/IG $0.88 SF/MO/MG $397.00 SF; $495,000 $0.75 SF/MO/NNN $825,000 $1.05 SF/MO/IG $0.95 SF/MO/IG $1.05 SF/MO/IG
John Erickson (Colliers Int.) 661-253-5202 • Chris Erickson (Colliers Int.) 661-253-5207
28334 Industry Drive
35,310
Lease
$0.59 SF/MO/NNN
116,143 21,147
Lease Sale
$0.58 SF/MO/NNN $135.00 SF
24700 Avenue Rockefeller 50,261 Lease 24730 Avenue Rockefeller 42,960 Lease (Buildings above can be combined for a total of 93,221 SF in space)
$0.57 SF/MO/NNN $0.57 SF/MO/NNN
Matt Dierckman (CBRE) 818-502-6752
28210 N. Avenue Stanford 25060 Avenue Tibbitts
Unit A Unit B Unit C Unit B & C Unit A, B & C
$111.47 SF; $0.55 SF/MO/NNN $115 SF
22,288 22,712 25,325 48,047 70,325
Lease Lease Lease Lease Lease
$0.61 SF/MO/NNN $0.62 SF/MO/NNN $0.62 SF/MO/NNN $0.62 SF/MO/NNN $0.62 SF/MO/NNN
Craig Peters (CBRE) 818-907-4616 • Doug Sonderegger (CBRE) 818-907-4607
28358 Constellation Road, Unit B 28338 Constellation Rd. Unit 920
24971 Avenue Stanford 25159 Avenue Stanford
8 4,984 3,328
Lease Lease
$0.65 SF/MO/NNN $0.76 SF/MO/NNN
20,415
Sale
$135 SF
79,701
Sale
$115.00 SF
21,650 3,480
Lease Sale
$0.79 SF/MO/NNN $210.00 SF
4,790 106 1,584
Sale Lease
$870,000 $1.35 SF/MO/NNN
Todd Lorber (NAI Capital) 818-933-2376
28381 Constellation Road 28446 Constellation Road 28029 Smyth Drive 26635 Valley Center Drive, Unit
Ron Berndt (Daum Commercial) 661-670-2000 • Kevin Tamura (Daum Commercial) 661-670-2001
24922 Anza Drive, Unit F
Craig Peters (CBRE) 818-907-4616
Craig Peters (CBRE) 818-907-4616 • Doug Sonderegger (CBRE) 818-907-4607 • Richard Ramirez (CBRE) 661-907-4639
11,600
Lease
$0.80 SF/MO/IG
146,000 54,060
Sale Lease
$142 SF + 1.8 ac. Land $0.64 SF/M0/NNN
Nigel Stout (JLL) 818-531-9685
28903 Avenue Paine 28308 Industry Drive 25161 Rye Canyon Loop Mann Biomedical Park Building #61
26037 Huntington Lane
10,000 - 38,465 22,557
Lease $0.60 SF/MO/NNN Sale/Lease $0.63 SF/M0/NNN/$139 SF
Craig Peters (CBRE) 818-907-4616 • Doug Sonderegger (CBRE) 818-907-4607
27911 Franklin Parkway
39,975
Lease
$0.54 SF/MO/NNN
52,260
Lease
$0.65 SF/MO/NNN
Doug Sonderegger (CBRE) 818-907-4607
28650 Braxton
John Erickson (Colliers Int.) 661- 253-5202 Chris Erickson (Colliers Int.) 661- 253-5207
28029 Smyth Drive
4,790
Sale
$181 SF/$870,000
Ron Berndt (Daum Commercial) 661-670-2000 Kevin Tamura (Daum Commercial) 661-670-2001
26858 Ruether Avenue
2,132
Lease
$1.05 SF/MO/MG
Lease
$0.57 SF/MO/NNN
Tim Crissman (Crissman Commercial Services) 661-295-9300
24700 – 24730 Avenue Rockefeller
Tim Crissman (Crissman Commercial Services) 661-295-9300
26000 Springbrook Avenue #17
25158 Avenue Stanford 44,548 Sale/Lease 26308 Spirit Court 44,944 Sale 28340-28400 Avenue Crocker
Randy Cude (NAI Capital) 661-705-3553
Kevin Tamura (Daum Commercial) 661-670 -2001 Ron Berndt (Daum Commercial) 661-670-2000
28312 Constellation Road
Price
Mark Sokolowski (NDKF) 310-491-2075, 818-497-8815 • Sean O’Leary (NDKF) 310-491-2010
Yair Haimoff (NAI Capital) 818-742-1659
SWC Soledad Canyon Rd/Golden Valley Rd Valley Business Center
Sale/Lease
James Ebanks (Realty Advisory Group Inc.) 661-702-8880 x12 • Lauren Ebanks (Realty Advisory Group Inc.) 661-702-8882 x18
Randy Cude (NAI Capital) 661-414-2004
Placerita Canyon/Sierra Canyon 15112 Placertia Canyon Bouquet Canyon/Vasquez Canyon 14825 Sierra Highway 24605 Railroad Avenue
Sq. Ft.
Rexford Industrial Center (various combinations)
Price
Nigel Stout (JLL) 818-531-9685
15112 Sierra Highway
Industrial Buildings (cont.)
93,221
Craig Peters (CBRE) 661- 907-4616 Doug Sonderegger (CBRE) 661-907-4607 Richard Ramirez (CBRE) 661- 907-4639
28034 Industry Drive. Unit A
9,973
Lease
$0.79 SF/MO/Gross
10,180
Lease
$0.75 SF/MO/NNN
Doug Sonderegger (CBRE) 818- 907-4607
20711 Centre Pointe Parkway
Craig Peters (CBRE) 661- 907- 4616 Sam Glendon (CBRE) 818- 502-6745
27420 Avenue Scott Unit C &D
68,592
Lease
$0.53 SF/MO/NNN
Craig Peters (CRRE) 661- 907-4615 Doug Sonderegger (CBRE) 661- 907-4607
21515 Centre Pointe Parkway
16,773
Sale
$215 SF/$3.6M
Chris Jackson (NAI Capital) 818-933-2368 Todd Lorber 818-933- 2376 Matt Ehrlich 818-933- 2364
Future Industrial Projects
Sq. Ft.
Sale/Lease
Price/Availability
West of I-5/SR 126/Commerce Center Drive Gateway V (Phase 1) 60,923 - 105,407 Sale /Lease IAC Commerce Center (Phase 1) 93,500 - 250,000 Lease Sierra Highway/Newhall Avenue/14 Freeway Needham Ranch (Phase 1) 16,000 - 223,530 Sale /Lease
TBD;1Q 2016 TBD; 3Q 2016 TBD; 1Q 2017
Craig Peters (CBRE) 818-907-4616 • Doug Sonderegger (CBRE) 818-907-4607 • Richard Ramirez (CBRE) 818-907-4639
28608 Hasley Canyon Road
20,499 - 44,162
Lease
TBD
Avalon Business Center JamesEbanks (RealtyAdvisoryGroupInc.) 661-702-8880x12• LaurenEbanks (RealtyAdvisoryGroupInc.) 661-702-8882x18
28528 Industry Drive
42,159
Sale
$134 SF/TBD
Gateway Industrial Doug Sonderegger (CBRE) 818-907-4607 • Craig Peters (CBRE) 818-907-4616
Future Office Projects
Sq. Ft.
Sale/Lease
27750 North Entertainment Drive
100,000
Lease
Price TBD
Entrada Gateway Center Ryan House (JLL) 818-531-9677 • Dan Sanchez (JLL) 818-531-9682 • Jim Lindvall (JLL) 818-531-9678 Note: Parties interested in properties should contact listing broker or agent for more information. To list here:
James E. Brown, Manager Business Attraction, SCVEDC, 661-288-4413, JimBrown@scvedc.org
MARCH 2016
SANTA CLARITA VALLEY BUSINESS JOURNAL
31
Residential Real Estate Housing Stats - Santa Clarita Valley
SCV Median Home Value SCV Median Condo Value SCV Home Sales SCV Condo Sales SCV Avg. # of Days on Market (SF) SCV Single Family Home Inventory
Jan ‘16
Dec ’15
Jan ’15
530,000 306,500 113 55 93 443
518,000 309,000 238 99 95 424
480,000 315,000 108 57 92 375
Source: Santa Clarita Valley Economic Development Corporation.
January Sales
Acton New Listings . . . . . . . . . . . . . . .10 Total Active Listings . . . . . . . . .40 New Escrows Closed. . . . . . . . . .3 Median Sale Price . . . . . $477,500
Newhall New Listings . . . . . . . . . . . . . . .32 Total Active Listings . . . . . . . . .49 New Escrows Closed. . . . . . . . .17 Median Sale Price . . . . . $370,000
Agua Dulce New Listings . . . . . . . . . . . . . . . .7 Total Active Listings . . . . . . . . .27 New Escrows Closed. . . . . . . . . .2 Median Sale Price . . . . . $270,000
Saugus New Listings . . . . . . . . . . . . . . .66 Total Active Listings . . . . . . . . .77 New Escrows Closed. . . . . . . . .39 Median Sale Price . . . . . $475,000
Canyon Country New Listings . . . . . . . . . . . . . . .68 Total Active Listings . . . . . . . .118 New Escrows Closed. . . . . . . . .33 Median Sale Price . . . . . $370,000
Stevenson Ranch New Listings . . . . . . . . . . . . . . . 12 Total Active Listings . . . . . . . . . 21 New Escrows Closed. . . . . . . . . 10 Median Sale Price . . . . . $756,000
Castaic New Listings . . . . . . . . . . . . . . .20 Total Active Listings . . . . . . . . .34 New Escrows Closed. . . . . . . . .13 Median Sale Price . . . . . $452,500
Valencia New Listings . . . . . . . . . . . . . . .93 Total Active Listings . . . . . . . .119 New Escrows Closed. . . . . . . . .51 Median Sale Price . . . . . $470,000 Source: Southland Regional Association of Realtors. Jan. 1 - 31, 2016
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2016 Economic Outlook Conference We Salute the SCV Economic Development Corporation We salute the efforts of the Santa Clarita Valley Economic Development Corporation, sponsor of the 2016 Economic Outlook Conference, for its accomplishments last year in helping to drive economic activity to the region. Last year the SCVEDC helped to attract 13 new companies to the valley, accounting for 853 new jobs in the region. It attracted or retained 1,400 jobs in total. Among the companies assisted in making Santa Clarita its home base, or to open DQ RIÀFH DUH WKH /RJL[ )HGHUDO &UHGLW Union headquarters, California Resources Corp. - a spinoff of Occidental Petroleum, Richard Photo Lab, Agridora Investment &R 7KH 6FHQLF ([SUHVVLRQV DQG &'6 'RRUV ² WR QDPH EXW D IHZ RI WKH ÀUPV LW has secured. ,Q HDFK FDVH WKH FRPSDQLHV ÀUVW ORRNHG at location options outside of the Santa Clarita Valley. In the end, CEOs at the ÀUPV UHSRUWHG WKH EHQHÀWV RI RSHUDWLQJ LQ Santa Clarita, the business-friendly nature of the city, and the SCVEDC’s help in smoothing the way, made Santa Clarita the location of choice.
Santa Clarita’s Only Business Publication SCVBJ.COM 3ODF OD DF FH \R \R RXU ÀÀUP· P·V ·V PH PH HVVDJH DJ JH Z ZKH HUH E UH EXVLQH HVV D DQG L QG LQG GXVVWU\ Z ZLOO VVHH \ \RX To ad adv dve ve ertise isse call: (6 661) 25 59--123 234 34