SCV Business Journal, January 2017 by Signal

Canyon Country · Newhall · Saugus · Valencia · Stevenson Ranch · Castaic · Agua Dulce

Santa Clarita Valley Business Journal Santa Clarita’s Only Business Publication

$4.50 · Volume 8 · Number 9

www.scvbj.com

january 2017

SCV Sees Hotel Boom, But Meeting Space Lags Page 4

 Courtesy rendering.

For 60 Years, Three Generations Deliver “Another Andy Gump” By Malena A. Jackson SCVBJ Contibutor

ver its 60-year history, Andy Gump Temporary Services has seen its growth fueled by a knack among three successive generations of family leadership for seizing opportunities and moving the company in new directions. Today the company, based in Santa Clarita since 1985,  Barry and Nancy Gump, 2nd and 3rd generation leaders of Andy Gump Temporary Services. Photo by has annual revenues of $2 mil- Dan Watson. lion, but its origins are humble. Massena “Andy” Gump, the for $300. Gump bought it, designed and Colorado-born founder, didn’t initially built a portable toilet out of plywood and plan to go into the temporary site busi- steel tubing, and a business was born. ness until an ordinance was passed in the Personalizing the portable toilets was 1950s requiring portable restrooms on suggested by Andy’s friend, sign painter construction sites. During a run hauling Larry Fontana. Painting “Another Andy Christmas trees, Gump happened upon a man looking to sell a septic pump truck See GUMP, page 12

Bestway: Thriving Among the Big Brands Lessons for Growth, Survival and Success By Ken Keller

hey say the apple doesn’t fall far from the tree. Raffi Haddad, owner of Bestway Rent-a-Car in Valencia, comes from a family of entrepreneurs that goes back four generations. His father, originally a blacksmith, got into the car repair business in 1987. Haddad worked with him and a partner, initially repairing car bodies and electrical systems in Canoga Park. That initial foray didn’t work out. But shortly after that business closed, with five running cars as his remaining assets, Haddad discovered the path he is still on. He’s been in the automobile business for thirty years now, and he’s faced more than his share of obstacles. As he looks back and looks ahead with confidence at the local economy, he now feels comfortable talking about the significant challenges he faced so that other business owners might learn and benefit from his story.

Opportunity, Name & Initial Financing It may seem either ancient or quaint now, but back in the day, there was a section in the classifieds of daily newspapers called “Business Opportunities.” It was here that a small ad caught Haddad’s interest. Stuart Silverman was looking to sell franchises for Avon Rent a Car.

 Bestway sign at the corner of Creekside Rd. and Auto Center Dr. Photo by Patrick Mullen.

Having been tutored by family members on the ups and downs of starting a business, Haddad knew that to do so successfully, one had to either already have the money or be one great salesperson, good enough to convince people to invest first in you, and then in your business idea. Silverman’s asking price for a franchise unit was $20,000 plus royalties. After meeting with Haddad, Silverman agreed to an initial See BESTWAY, page 14

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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

$4.50 · Volume 8 · Number 9

january 2017

Cover SCV Sees Hotel Boom, But Meeting Space Lags For 60 Years, Three Generations Deliver “Another Andy Gump”

Editorial SCVBJ Managing Editor

Jana Adkins jana@signalscv.com 661-287-5599

Bestway: Thriving Among the Big Brands

SCVBJ Editor

Features

Patrick Mullen

Moderate Economic Growth Likely to Continue in 2017. . . . . . . . . . . . . . . . . . . . 6

pmullen@signalscv.com 661-287-5509

Three Tech Trends To Watch In 2017. . . . . . 7

Advertising

Rajan to Become 4th President of CalArts.. . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Biomedical Firm Avita Medical Moving to SCV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

661-287-5564 Advertising Director

Steve Nakutin

New State Laws Affecting Businesses in 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

snakutin@signalscv.com 661-287-5561

December Recap. . . . . . . . . . . . . . . . . . . 10

Multi-Media Account Executives

Valencia Studios Sold For $19.3 Million . . . 11

Dawn Begley Maureen Daniels Toni Sims Monica Jaffe

New Transmitters To Boost Internet Speeds For Valencia Industrial Center. . . . . . . . . . . . 13 At Long Last, Santa Clarita has a Cheesecake Factory. . . . . . . . . . . . . . . . . 15 AMS Fulfillment, College Launch Apprenticeship Program . . . . . . . . . . . . . 16

Administrative Assistant

Courtney Briley

Princess Cruise Lines Hit With $40 Million Penalty. . . . . . . . . . . . . . . . . . . . . . . . . . . 16 LA County Relaxes Rules on Winemakers. . . . . . . . . . . . . . . . . . . . . . . . 17

Circulation ■ “Another Andy Gump” unit at the future site of the Santa Clarita Valley Senior Center. Photo by Patrick Mullen.

Pam Conley 661-287-5580

Discount Grocer Aldi’s New to Newhall. . . . 18 Marie Callender’s Closes. . . . . . . . . . . . . . 19

SCV Business Services 2016: A Year of Expansion. . . . . . . . . . . . 19 Appointments . . . . . . . . . . . . . . . . . . . . . 20

The List: Hotels. . . . . . . . . . . . . . . . . . . . . 22 SCVEDC. . . . . . . . . . . . . . . . . . . . . . . . . 23 SCV Chamber of Commerce. . . . . . . . . . 24 VIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Real Estate Section Commercial Real Estate. . . . . . . . . . . . . . . . . 26 Residential Real Estate. . . . . . . . . . . . . . . . . . 28

From the Editor “After changes upon changes, we are more or less the same.” So wrote Paul Simon in “The Boxer.” While some of us may feel like we’ve gone a few rounds in the ring after a year of tumult and rancor, the start of 2017, like every new year before it, offers a chance for a fresh start. Here in the Santa Clarita Valley, we continue to see growth and new energy flow in from other parts of the region and beyond, attracted by our community’s timeless beauty and enduring values. With the prospect for continuing economic growth, the impact of new rules here in

Circulation Manager

California, and the ever-accelerating pace of technological innovation (all discussed in this issue), plus new leadership in Washington, we know it’s going to be an exciting year. Here’s wishing that the changes coming this year will be positive and healthy, and that your 2017 is productive and prosperous.

Art/Production Graphic Design Supervisor

Deborah Runions Photographers

Daniel Watson Katharine Lotze Executive Staff Publisher

Patrick Mullen SCVBJ Editor pmullen@signalscv.com

Index of Products and Services

Charles F. Champion II cchampion@signalscv.com 661-287-5578 Vice President and Editor

Jason Schaff jason@signalscv.com

Colliers International. . . . . . . . . . . . . 28 Exclusive Service Directory Group. . . . 28 Fast Frame. . . . . . . . . . . . . . . . . . . . . 17 Hyatt Regency Valencia. . . . . . . . . . . . 4

■ Cindy Williams, is happy to be shopping at Aldi’s. Photo by Tom Cruze.

Mission Valley Bank . . . . . . . . . . . . . 13

661-287-5515

Newhall Mansion . . . . . . . . . . . . . . . . 2

Online www.scvbj.com

SCVEDC . . . . . . . . . . . . . . . . . . . . . 15

JD Systems. . . . . . . . . . . . . . . . . . . . . . 7

Valencia Acura. . . . . . . . . . . . . . . . . . 11

LBW Insurance Financial Services. . . . . 9

Valencia Country Club . . . . . . . . . . . . 2

Santa Clarita Valley Business Journal (a Signal publication), © 2017, is published monthly by the Santa Clarita Valley Signal newspaper, Paladin Multi-Media Group, Inc., 26330 Diamond Place, Santa Clarita, CA 91350. 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 are 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.

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JANUARY 2017

A Hotel Boom, But Meeting Space Lags Among plans in the works are:

By Paul Parcellin SCVBJ Contributor

usiness travelers will likely find a greater variety of hotel room options in Santa Clarita in the coming years, as builders add new hospitality space to the local market’s inventory. But some wonder if demand will keep up with the supply of rooms that are either being built or are on the drawing board. When it comes to hotel meeting space, the Hyatt Regency Valencia and its ballroom will remain the only game in town for the foreseeable future. Growing demand in a vibrant market has spurred hotel construction. After two years of nearly unprecedented occupancy rates, a handful of Santa Clarita hotel projects have either broken ground or are in the planning stages. In the closing weeks of 2016, local hotels were on track for a 90 percent occupancy rate, according to Jason Crawford, Santa Clarita’s economic development manager. “In 2015 we had 84 percent,” he said. According to Crawford, Magic Mountain amusement park visitors, corporate travel, film and TV industry traffic, along with sports tourism are the fuel that helped stoke demand for local lodging. “We’ve been pretty under-supplied in hotel rooms,” said Holly Schroeder, president and CEO of the Santa Clarita Valley Economic Development Corp. “The occupancy rates have been pretty high, so there’s recognition that we need more supply on the hotel side.” New hotels that are in both the planning and building stages will increase not only the number of rooms available, but the variety of lodging spaces that travelers can choose from. The new projects include boutique and extended stay hotels.

mission style, and would have five stories, one for parking. The 108-room, 65-foot-tall Holiday Inn Express would be • The Luxen Hotel in Newhall, a boutique hostelry that four stories, and be built in a contemporary design. broke ground at 24219 Railroad Ave. in September. The • Hilton is planning to locate an extended-stay HomeLuxen will provide an additional 42 rooms to the region’s wood Suites and a Hampton by Hilton near Newhall inventory. The Luxen will have two main stories and a Ranch Road between West Rye Canyon Road and Vanderpenthouse. Its architectural style has been described as a bilt Way at the edge of the Valencia Industrial Center. The hybrid of Western, Victorian and main-street commercial, Homewood plan calls for 107 rooms, consisting of full-size consistent with the city’s vision for the area. suites with kitchens and bedrooms. • The Oliver Hotel Group is building a 134-room develNew construction in Santa Clarita is keeping pace with opment on the site of the old Greens miniature golf course regional growth trends. One analyst said hotel building in at the intersection of McBean Parkway and Valencia Bou- Southern California is at the highest level in recent years. levard. The city approved “In a lot of cases, we the project in November, haven’t seen this supply after insisting on design pipeline, ever,” said Robert changes. The Oliver Group Feist, a vice president at Athas been negotiating to lolas Hospitality Group, an cate an Element by Westin Irvine-based hotel brokerhotel at the site, which is age firm. located just south of the He added that he sees Hyatt Valencia. Construcnothing on the horizon – Chuck Nester tion is expected to begin in Brown Nester Hospitality Services that would cause a decrease 2017. in revenue per available • A Residence Inn by room (RevPAR) between Marriot and a SpringHill Suites are proposed for a site on now and the end of 2017, which would slow down new Wayne Mills Place across from Magic Mountain currently construction. But as building proceeds, others note that the numbers occupied by a Holiday Inn Express and a Best Western. The plan calls for adding the two hotels to the site, demol- that have inspired the boom don’t give the full picture. Jessica White, senior project manager at the Los Angeles ishing the current Best Western, and rebranding the Holiday Inn Express as a new Best Western. That will add a net office of HVS, a national hospitality industry consulting 170 new rooms to the city’s inventory. Demolition of the service, said that other factors have influenced the rosy ocBest Western will eliminate 120 rooms, and the two new cupancy rates seen this year and last. The Porter Ranch gas leak in the first quarter of 2016 structures will add 290. Santa Clarita’s Planning Commisinflated average occupancy performance, she said. Prior to sion wants the developer to improve pedestrian safety and increase parking, and expects to review revised plans at its that, most managers were forecasting a 1 to 2 percent drop Jan. 17 meeting. Developers hope to begin construction in occupancy for 2016. “Those numbers were exceeded because of that event,” later this year. According to plans, the 182-room, 75-footshe said. tall Residence Inn/SpringHill Suites would be built in the

“

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 Rendering of Oliver Hotel to be built at McBean Parkway and Valencia Boulevard in Santa Clarita. Courtesy rendering.

In addition, the Sand Fire, a blaze that burned more than 37,000 acres in Santa Clarita last July, brought large numbers of firefighters to the region in 2016, helping to fill hotels to capacity. While regional emergencies have inflated occupancy rates, growth continues, but at a slower pace than in recent years. White said that most managers are budgeting a 1 percent or flat occupancy in 2017 and a 3 to 4, or for some, 5 percent average rate increase. She predicted that the region will see an occupancy decline when the new hotels go online because it will take the market about a year to absorb the new inventory. She added that Hilton’s extended-stay facility may induce demand because there really isn’t anything like it in the market. Developers seem to be avoiding over-building in Santa Clarita. But Chuck Nester, president of Brown Nester Hospitality Services, a hotel brokerage and management

firm, warned that the balance could tip. “I believe they’re probably reaching saturation,” he said. “If other hotels come online, past the other two or three that are already in the works, you’re going to have an occupancy issue.”

Meeting Space

While hotel construction proceeds at a brisk pace, the same cannot be said for meeting spaces in Santa Clarita. The new hotels aren’t expected to contribute significantly to the supply of conference space. “I hear from some of our larger employers that there aren’t any options when they want to bring in their whole staff or staff from across the region,” said Schroeder. One new meeting space is part of a project that won’t be finished until 2018. The city’s new senior center, to be built near the corner of Golden Valley Road and Five Knolls Drive, will include a dining hall that seats 350, which will be rented out on nights and weekends for meetings and banquets, said Kevin MacDonald, the senior center’s executive director. The city’s largest meeting space is the Hyatt Regency Valencia grand ballroom, which can accommodate up to 300 in a classroom setting, or up to 430 diners. The space can hold up to 600 with theater seating. On average, the Hyatt accommodates up to 400 meetings of various sizes annually, according to Jeannette Vasquez, the hotel’s director of sales and marketing.  This Best Western hotel will be torn down, giving way to two new hotels, a Residence Inn by The Hyatt does not Marriott and a SpringHill Suites. Courtesy photo.

have any plans to build additional meeting space. Other local facilities that offer meeting spaces include Embassy Suites, The Centre on Centre Pointe Parkway, Robinson Ranch Golf Club and the Valencia Country Club, as well as a number of different facilities that can accommodate smaller groups. The city has also been considering a new conference center to accommodate large non-profit events and to bring in corporate visitors and increase tourism-related business. A 2013 study by PKF Consulting concluded it would make sense to have a conference center in Santa Clarita. The report said that a conference center with a ballroom of up to 20,000 square feet and a total building area of 40,000 to 60,000 square feet could pay for its own operation. The center would bring more tourist traffic to town, the report said. Unfortunately, money generated by the center would not necessarily be enough to cover construction costs. The city continues to search for a hotel that would partner with Santa Clarita and build a conference center. But developers, including the Oliver Hotel group, which is building the project next to the Hyatt, haven’t shown interest thus far. “All cities love to have a convention center,” said Nester. “They always want somebody else to build it on the theory that, ‘Build it, and they will come.’ I’ve seen a lot of cities push to build a convention center only to find out that nobody shows up.” Nester said that it’s getting tougher to attract the kind of convention business needed to build a facility that generates a strong demand for hotel rooms. “That’s because of the electronic and social media world we’re in today,” he said. With online applications such as GoToMeeting and FaceTime, there aren’t many 10- to 30-member meeting groups anymore. When you factor in the costs of hotel rooms, food, beverages and travel, it’s not worth it. Nester said that new electronic media have hurt convention centers with large main halls attached to small rooms that aren’t being used. “Those body counts aren’t as strong as they used to be because smaller groups can more efficiently meet online,” he said. ■

SANTA CLARITA VALLEY BUSINESS JOURNAL

JANUARY 2017

Moderate Economic Growth Likely to Continue in 2017 For an informed perspective on where the economy is headed in 2017, SCVBJ Editor Patrick Mullen talked with Mark Schniepp, Ph.D., director and principal with California Economic Forecast. The full service economic consulting firm is based in Santa Barbara and, as its name suggests, pays particular attention to the California economy.

SCVBJ: Where do you see the stocks heading in 2017?

SCVBJ: Let’s start with the big picture. What do you expect in terms of overall economic trends in 2017?

SCVBJ: There seems to be some uncertainty about where U.S. trade policy is heading. Do you foresee problems with our major trading partners?

Schniepp: The economy is growing, but not that quickly. Growth could hit 3 percent, and maybe go a little higher at some point during the year. I don’t expect major changes from what we’re seeing now. We will continue to see expansion, with perhaps a bit more of a bump in the second half of the year, simply because by then we may start to see the federal government kick in with new expenditures or at least allocations. The bigger issue is going to be how what happens in Washington ultimately impacts the perceptions of American consumers. Right now, consumer confidence is pretty much at a cycle high. It’s moving toward a record high. People are feeling very good about themselves and their prospects for the future right now, and to the extent that things happening in Washington make them feel happier or safer, that will drive their spending. SCVBJ: Do you have any concerns about a recession in 2017? Schniepp: No. We’ve been very vigilant watching for signs of recession. That’s part of our charge, to watch for overzealous markets or areas of weakness. I don’t see any signs. There’s too much momentum carrying us over from 2016. Interest rates are not threatening to go significantly higher, inflation is contained, and industrial production is rising again. Construction, including home building, is picking up around the country. Non-residential construction is up in California. The only thing that could throw us into recession would be something completely unanticipated and unexpected. Recessions are usually caused by excesses or when resources get strained, or inflation or interest rates start to rise quickly enough to shut down investment opportunities, or some other kind of speculative thing that blows up. We don’t see that happening, and neither does anybody credible. SCVBJ: The Federal Reserve has been pretty careful to telegraph coming upticks in interest rates, so I imagine you don’t foresee any surprises there. Schniepp: That’s right. Based on what they said last month, we’ll likely three more hikes of a quarter point each, for a total of 75 basis points which would put the Federal Funds Rate at 150 by the end of this year.

Schniepp: You never really know with the stock markets, other than that they will go through gyrations. They depend on earnings and the condition of the world economy, which appears to be getting a little stronger. I don’t look for a big down year or a major correction.

Schniepp: We’ll have to see if President-elect Trump is going to go through with some of his campaign promises, which have looked a little dubious. He wants to bring manufacturing jobs back to America, and I don’t know how that’s going to happen. That’s like bringing back the days of old. I don’t look for any major changes in trade policy until at least 2018, if not even later. It will be interesting to see what kinds of negotiations occur. If we could level out our imports from China with our exports, we’d have a great current accounts balance that would help our GDP growth. With Canada, our biggest trading partner, and Mexico, we’re almost even. Despite all the talk, I think our relationship with Mexico is going to be just fine. SCVBJ: What do you expect to be the new Administration’s top policy priority? Schniepp: The number one thing Trump was voted into the presidency for was to do something about the Affordable Care Act, because more people are disillusioned with that than with anything else. I look for that to be a top priority of the Trump Administration and I look for that change to take place in the next 18 months. I don’t think Americans expect change immediately. SCVBJ: Can businesses be looking to expand and hire this year? What kind of year should CEOs be gearing up for? Schniepp: They should expect a better year overall in terms of demand for products, but a much more difficult year for hiring, so they should be looking for places where technology can fill in where labor might not be available, particular for less skilled work. We’re seeing the world economy expand, including in developing countries. The U.S. is looking very strong. We’re at full employment right now. Employment can’t go much higher, so the only way companies can hire is if the labor market expands, as high school grads and college grads come into the market, or people immigrate into the U.S. Job creation won’t be stellar, simply because everyone’s already hired. It’s going to get tougher for HR people to find enough qualified people to fill positions.

Consumer confidence heading up

 Mark Schniepp, Ph.D., director of California Economic Forecast. Courtesy photo.

SCVBJ: Aerospace and bioscience are significant sectors here in the Santa Clarita Valley. What might they expect in 2017? Schniepp: They’ll continue to be engines of growth, but again, only if they can find the workers they need. They’re high paying and somewhat labor intensive industries, with highly skilled workers needed to design and manufacture components. To the extent the bioscience companies continue to have breakthroughs or have labs in less expensive parts of the country, because California is so expensive, that industry will continue to do well. And we may continue to see some manufacturing move overseas. SCVBJ: Will legalization of recreational marijuana use in California have much of an impact? Schniepp: That won’t kick in until 2018, so the jury’s still out. When Colorado legalized marijuana in 2014, it did provide an economic bump in 2014 and 2015. It looks like it leveled off in 2016 and growth won’t be significant in 2017. Supply starts to increase faster than demand and prices do down. Here in California, I expect we’ll see the same pattern. I don’t think it’ll be a big engine of growth in California. SCVBJ: What are some things that could slow economic growth in California? Schniepp: We really have an issue with home building, especially for people in the 18-35 age range. That’s a reason millennials can’t afford to move out of their parents’ homes: they can’t afford to buy a home, and even renting is tough. We’re not producing a lot of homes to buy, thanks to CEQA (California Environmental Quality Act), a lot of onerous local regulations, and the right of almost any group to sue and file injunctions and wait for things to be decided in the courts. That happens to every project up and down the state. With a continuing rise in demand, a very slow increase in supply, we’re going to see a continuing rise in home prices. SCVBJ: How much of an economic drag is the housing situation? Is it measureable? Schniepp: It definitely inhibits growth, and we know it inhibits domestic migration into California (more than international migration) but it’s not easily measured. It does make it difficult to build a skilled workforce, particularly on the coast. SCVBJ: How did your predictions for 2016 turn out? Schniepp: We did very well. We watch very carefully for signs of recession, and predicted slow growth, as did a lot of people. We were a little high in our prediction for job creation in the Santa Clarita Valley. It didn’t produce quite as much as we thought, though it’s actually growing pretty robustly.

 Chart source: University of Michigan Index of Consumer Sentiment.

SCVBJ: Thank you. ■

JANUARY 2017

SANTA CLARITA VALLEY BUSINESS JOURNAL

Three tech trends to watch in 2017 By SCVBJ Contributor

here can be no doubt that the technology landscape is changing at a frenetic pace. But among the endless list of emerging technologies and tools, which will make the biggest difference in 2017? CTO Forum, a non-profit group that brings together technology professionals across industries, surveyed a group of senior technologists from America’s leading companies to glean insights on technologies that are at the forefront of their minds and should be on every business leader’s radar in 2017. Three technologies top the list: artificial intelligence, the Internet of Things, and blockchain. They aren’t new but they’ve reached a level of maturity and are beginning to have a huge impact on how businesses operate and engage with customers.

AI: The new electricity Many experts call artificial intelligence (AI) the new electricity: just as electricity transformed the world a century ago, AI is dramatically expanding the limits of what’s possible today. In recent years, AI has evolved from science fiction movie plots to everyday reality. “We’ve seen profound improvements in the implementations of artificial intelligence over the last few years,” said Nicko van Someren, chief technology officer (CTO) of Linux Foundation, a non-profit trade association in San Francisco. “It was primarily driven by finally reaching the point where we can build significantly deep neural networks and have them run at a reasonable speed.” From workflow management tools, trend predictions to customer support, machine learning is transforming how business operates by driving productivity and reducing costs. “In consumer space, scale is important,” said Ralph Loura, CTO for Rodan + Fields, a maker of skincare products based in San Francisco founded by the creators of Proactiv. “In the next 18 months or so, intelligent agents and bots will be interface points and AI will help drive the personalized interface and enrich interaction with people.”

JDS_Half_SCVBJ_0316.indd 1

Machine learning and AI also play a significant role in the rapid development of autonomous vehicles. According to tech consultants Gartner, there will be 250 million cars connected to each other and to the infrastructure around them by 2020. Automotive Electronics Roadmap Report forecasts that the install rate of AI-based systems in new vehicles will rise from just 8% in 2015 to 109% in 2025, meaning cars will have multiple AI systems. “We are on the verge of changing from being a car manufacturer into becoming a mobility ecosystem provider,” said Chuhee Lee, VP of Technology and Strategy for Volkswagen Group Electronics Research Lab in Belmont, Calif. “The emerging technology that is crucial for us is obviously autonomous driving powered by machine learning techniques.”

Buzz phrase no more: the Internet of Things The adoption of Internet of Things (IoT) devices in multiple industries has risen dramatically in the past several years. Analysts expect there will be 25 billion connected devices installed by 2020 and companies will invest nearly $6 trillion on IoT solutions over the next five years. “It’s going to hit almost every industry,” said Steve Gray, senior vice president of engineering in the San Jose office of Qualcomm, maker of semiconductors and telecomm equipment. “It doesn’t matter whether you’re in financial services, networking or consumer products, Internet of Things is going to impact you in some way,” The accelerating adoption rate creates new risks and opportunities for business. A wealth of data will allow businesses to achieve new levels of operational excellence, innovate business models, improve product development, launch new revenue streams and roll out new services. “The Internet of Things gives us the ability to gather data from areas that previously have not been able to be gathered,” said Kirk Ball, CTO for The Kroger Company in Cincinnati. “We are able to animate, give voice to inanimate objects and then process the vast amount of data from these sensors to make better decisions and drive analytics.”

One of the most significant risks of IoT revolves around security. “We have seen today more and more security threats,” said Qualcomm’s Gray. “We work with the automotive industry and that is a key consideration for us. The car has really become a networking device on wheels so we’re very focused on being able to shut down security threats.” However, 90 percent of organizations still don’t have a cybersecurity strategy for the Internet of Things, according to the new Cybersecurity Preparedness Benchmarking Study by the Berkeley Research Group in Emeryville, Calif. The silver lining: security flaws are being discovered so they can be identified and fixed. “It is crucial to be very aware of your security strategy and look at the technologies that are required to be able to secure the services or products that you develop,” added Gray. “There are a lot of new technologies which are developed in the security realm, and if you are working in a business and you are connected to the internet, you invariably are dealing with security threats.” There is no doubt that Internet of Things is no longer just a tech buzzword. It has tremendous potential to change our interactions with the physical world. It is also clear that there See TECH, page 19

3/15/16 9:07 AM

SANTA CLARITA VALLEY BUSINESS JOURNAL

JANUARY 2017

Rajan to Become 4th President of CalArts By SCVBJ Staff

avi S. Rajan, the Dean of the School of the Arts at Purchase College, State University of New York, has been named as the fourth President of the California Institute of the Arts, the school’s Board of Trustees announced on Dec. 13. Rajan follows the 29-year tenure of outgoing president Steven Lavine at the school which Walt Disney himself envisioned more than 50 years ago. He’ll begin his tenure June 1. Rajan’s selection was officially announced to the CalArts community in November following a unanimous board vote. “CalArts is a beacon in the higher ed and arts community that has left an indelible mark on the artists who are forging the future monuments of culture and society,” said Rajan in a statement. Rajan had proven himself to be an innovative and thoughtful leader, Chairman of the Board of Trustees Tim Disney said in a statement. “His passion and vision for arts education aligns with the CalArts community,’ Disney said. “Ravi showed the fiery passion for the arts that was at

the core of CalArts’ founding. “His commitment to excellence and exploration and innovation will help continue CalArts’ rich legacy and unbounded future.” As Dean of the School of Arts at Purchase College since 2012, Rajan has started a 3-phase $100 million capital renovation of the art and design facilities at Purchase College, the first such renovation in the program’s history. Rajan’s advocacy reportedly helped strengthen a culture of philanthropy, resulting in the college securing the largest individual donations since its founding. He also spearheaded the creation of a new Master of Arts in Entrepreneurship in the Arts, the first graduate degree of its kind in the world. Rajan has extensive experience in the production of art, music, theatre/dance, and film/video, as well as in senior executive roles in higher education, the board said. “I’ve known and experienced the amazing work of CalArts’s faculty and alumni for decades, and have marveled at the innovation and transformation that has occurred under President Lavine’s leadership,” Rajan said. “I’m humbled by this opportunity, excited to be a part of this great community, and look forward to building upon the innovative pedigree of CalArts.” ■

■ Ravi S. Rajan to become CalArts president

Biomedical Firm Avita Medical Moving to SCV By Patrick Mullen SCVBJ Editor

ttracted by a growing cluster of medical device and bioscience companies, Avita Medical is moving its headquarters staff of 25 from Northridge to Santa Clarita this month. The company specializes in the treatment of wounds and skin defects, including chronic wounds, acute burns and aesthetics. Avita leased 12,000 square feet of space on Avenue Stanford, with Richard Ramirez, senior associate with CBRE Group’s Los Angeles North office, as its broker. The company looked at a number of different locations, said Chief Operating Officer Troy Barring, and was attracted to Santa Clarita by the presence of the Alfred Mann Foundation, the Mann Biomedical Park, and numerous biomedical companies in the. Avita contracts out its manufacturing operations to Parker Hannifin Corp.’s Parker Medical Systems Division in Ventura, Calif., and isn’t currently looking at moving manufacturing in-house. “Our primary focus now is on building our clinical and regulatory expertise,” Barring said. The public company’s shares are traded over the counter and on the Australian Stock Exchange, which reflects a predecessor company’s roots in Perth. The company’s technology, called regenerative epithelial suspension (RES) and marketed at ReCell, uses a batterypowered device that combines the patient’s own cells with wound-healing factors to create a suspension that regenerates natural healthy skin. Clinicians apply the treatment in a 30-minute procedure. “We call it a single-use disposable lab in a box,” Barring said. The device can create the suspension using small skin samples, reducing the need for donor skin. The ReCell single-use device enables healthcare providers to quickly and easily make a suspension that can be applied to a burn. The company cites clinical data showing that this can improve short-term healing as well as provide superior longterm outcomes. The device first attracted attention when it was used for burn victims after a 2002 bombing in Bali, Indonesia. It was most recently deployed in another mass casualty event at a Taiwan water park. Avita is in the second year of a $61.1 million contract with the U.S. Biomedical Advanced Research and Development Authority (BARDA), a federal disaster preparedness agency. The pact involves pre-market approval trial for 5,000 ReCell burn treatment devices, of which $27.1 million has been funded. The contract, part of a U.S. mass casualty preparedness program, is “a momentous milestone” for Avita said CEO Adam Kelliher, one “that further validates the opportunity

■ Avita’s new building in Santa Clarita. Photo by Patrick Mullen.

afforded by our unique regenerative medicine and highlights the importance of preparedness for mass casualties.” Avita anticipates completing its clinical data package submission by Feb. 1 to the U.S. Food and Drug Administration for permission to market ReCell in the United States, and is anticipating market approval by the end of 2017. Its use is currently limited to what the FDA classifies as “compassionate use protocols,” meaning physicians can use it when they believe there is no suitable alternative treatment. Last month, FDA approved an increase in the number of patients, to 48, who can be treated with the device under the protocols, and the number of hospitals that can use it, to 15. The expansion will allow “surgeons to further deploy our devices in the U.S. for patients who suffer extensive injuries, and are in a life-threatening condition,” said Kelliher. “It underlines our key proposition, that ReCell is a safe, powerful

and effective means of facilitating healing. Most of the cases to date have been in burns, indicating the growing interest we are seeing within the U.S. burns community for our unique approach.” The company cites several factors that could fuel its growth: Chronic lower limb ulcers represent over 30 million annual chronic procedures in key commercial markets; three million burn victims - among the most costly patients to treat - require surgical intervention for burn injuries in developed countries each year; in the United States, over six million people seek treatment from cosmetic surgeons for skin discoloration, acne scarring, skin defects and stretch marks in the U.S., representing a $2.8 billion annual market, and more than 580,000 people are treated by plastic surgeons each year for scar remodeling, a $1.3 billion market. ■ This story originally ran in The Signal newspaper on Nov. 26.

JANUARY 2017

SANTA CLARITA VALLEY BUSINESS JOURNAL

New State Laws Affecting Businesses in 2017 California businesses need to be aware of significant changes in state employment laws enacted by the state legislature. Unless specified, all new legislation went into effect on Jan. 1, though many bills feature delayed or phased-in implementation. Here are highlights of the new laws, compiled by the California Chamber of Commerce.

Wage and hour Minimum wage: SB 3 will increase the minimum wage over the next several years to $15 an hour. For January 1, 2017, businesses with 26 or more employees must pay a minimum wage of $10.50 per hour. The minimum wage increase will require all employers to post a new Minimum Wage Order.The upcoming minimum wage increase also will have an effect on other pay practices, such as the overtime rate. AB 2535 clarifies that employees who are exempt from the payment of minimum wage and overtime are not required to have their hours tracked and logged on pay stubs. Payroll: AB 1847 requires employers who must notify employees of their eligibility for the federal Earned Income Tax Credit to notify these employees that they may be eligible for the California Earned Income Tax Credit. The bill updates the required notice that must be given to employees. Challenges to minimum wage violations: Under AB 2899, employers who contest a Labor Commissioner ruling that they failed to pay the minimum wage must post a bond equal to the unpaid wages, excluding penalties. Local wage enforcement: SB 1342 grants local officials or department heads the power to issue subpoenas and to report noncompliance with employment-related ordinances, such as local minimum wage ordinances, to superior court judges. The legislative intent of this new law further encourages cities and counties to enact measures to combat wage theft.

of employee under California’s Fair Employment and Housing Act (FEHA) to authorize an individual employed under a special license in a nonprofit sheltered workshop, day program or rehabilitation facility to bring an action under the FEHA for any form of prohibited harassment or discrimination. Human trafficking: AB 1684 authorizes the California Department of Fair Employment and Housing (DFEH) to receive, investigate and prosecute complaints from victims of human trafficking. The DFEH can bring civil actions on behalf of these victims. State contracts and anti-discrimination certification: AB 2844 requires those who bid, propose or renew a contract of $100,000 or more with a state agency to certify their compliance with the Unruh Civil Rights Act and FEHA. Discrimination regulations and enforcement: SB 1442 consolidates various antidiscrimination regulations and enforcement and investigatory powers under the jurisdiction of the DFEH. It removes other state agencies’ authority to issue regulations prohibiting discrimination.

SB 3 will increase the minimum wage over the next several years to $15 an hour.

Discrimination and retaliation protections Fair pay: Last year, significant amendments were made to California’s equal pay laws to address gender wage inequality. This year, two new bills expand California’s Fair Pay Act. SB 1063 prohibits an employer from paying any of its employees wage rates that are less than the rates paid to employees of another race or ethnicity for substantially similar work. AB 1676 specifies that, under the Fair Pay Act, prior salary cannot, by itself, justify any disparity in compensation. Harassment prevention training: AB 1661 requires local agency officials, including local elected officials, to receive sexual harassment prevention training and education whenever those officials receive any type of compensation, salary or stipend. All-gender restrooms: AB 1732 sets a new requirement that, beginning March 1, 2017, all single-user toilet facilities in any business establishment, place of public accommodation or government agency must be identified as “allgender” toilet facilities. Immigration-related protections: Employers are required by federal law to verify an employee’s eligibility to work using the Form I-9 process. Under federal law, it is unlawful for employers to ask for more or different documentation than is required by the Form I-9, refuse to accept documents that appear genuine on their face or engage in other types of document abuse. SB 1001 makes this type of conduct unlawful under state law as well. Definition of employee: AB 488 revises the definition

Leaves of absence and benefits

Background checks Juvenile criminal history information: AB 1843 prohibits employers from inquiring into an applicant’s juvenile convictions or using such convictions as a factor in determining any condition of employment. Criminal background check — ride sharing services: AB 1289 requires a “transportation network company” (think Uber and Lyft) to conduct local and national criminal background checks for each participating driver and prohibits the use of drivers with certain types of convictions.

Workplace safety Driving: AB 1785 reaffirms the general ban on using wireless electronic devices while driving, but amends existing law to authorize drivers to use their hand to activate or deactivate a feature or function of the device with a single swipe or tap, as long as the device is mounted so as not to hinder the driver’s view of the road. Public works and prevailing wages: A number of new laws relate to public works and prevailing wages. Employers who provide services or construction work on public works projects for the government or public-sector entities must pay the prevailing wage, which is usually significantly higher than the minimum wage. AB 326 requires the release of funds held pending a prevailing wage determination; AB 1926 relates to the payment of apprentices for pre-employment activities, such as testing or training; and SB 954 limits the ability for a nonunion contractor to receive a credit for certain payments made against the prevailing wage. ■

Paid family leave benefits: Effective Jan. 1, 2018, AB 908 increases the amount of paid family leave (PFL) benefits an employee can receive from 55 percent of earnings to either 60 percent or 70 percent of earnings, depending on the employee’s income. Domestic violence, sexual assault and stalking protections: AB 2337 requires employers with 25 or more employees to provide employees with written notice about the rights of victims of domestic violence, sexual assault and stalking to take protected time off for medical treatment or legal proceedings. A required form must be given to all new employees when hired and to current employees upon request. The Labor Commissioner is required to develop the form on or before July 1, 2017. Employers need not comply with this requirement until the Labor Commissioner posts the new form on its website. Commercial Lines Insurance Paid sick leave: SB 3 extends California’s paid sick Workers Compensation leave law to cover in-home Employee Benets supportive services workers beginning July 1, 2018. AB Financial Services / 401(k)* 2393 provides specific rules Life, Disability, LTC relating to the interaction 28055 Smyth Drive | Valencia CA 91355 High Net Worth Personal Insurance of sick leave and parental CA Insurance License#0785905 leave for school district employees working in posi*Advisory services offered through Capital Analysts or Lincoln Investment, Registered Investment Advisors, Securities offered through Lincoln Investment • Broker/Dealer • Member FINRA/SIPC www.lincolninvestment.com. L/B/W Insurance & tions requiring certification Financial Services, Inc. and the above firms are independent and non-affiliated. 11/16 qualifications.

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JANUARY 2017

December Recap By Patrick Mullen SCVBJ Editor

Editor’s Note: Here are a few of the stories published in The Signal newspaper in December, during the month in which the SCV Business Journal published its annual “Book of Lists.”

Princess Cruises Outsourcing 61 Local IT jobs Princess Cruises and its corporate parent, Carnival Corp., are outsourcing information technology operations, costing 200 employees their jobs, including 61 in Valencia. Another 60 affected workers are at Carnival headquarters in Miami, with the balance at its other subsidiaries. The affected workers were offered contracts with Capgemini, a Paris-based international consulting, technology, and outsourcing firm that has offices in 36 cities in 15 states. Carnival said its move is meant “to help strengthen its operation and keep pace with the evolving technology environment,” said Princess spokeswoman Negin Kamali. She added that all impacted individuals are being offered employment with Capgemini, and that they “also can also seek other career opportunities within Carnival Corp.” As required by state law, Princess filed a Worker Adjustment and Retraining Notification (WARN) notice of the

■ Princess Cruises Santa Clarita headquarters. Courtesy photo.

layoffs with California’s Employment Development Department on Dec. 5, indicating that the 61 permanent layoffs will take effect Feb. 4. The affected workers were offered six-month contracts with Capgemini, Carnival spokesman Roger Frizzell told the Miami Herald, and had until Dec. 19 to sign. In August, the consulting firm will decide who gets permanent job offers. Frizzell denied reports that the jobs were being sent to India.

J.R.’s Comedy Club Heading to J.J.’s Bar and Grill After 19 years at Marie Callender’s Restaurant and Bakery on The Old Road, J.R.’s Comedy Club debuts Jan. 6 at J.J.’s Bar and Grill at 25848 Tournament Road in Santa Clarita, formerly the site of Mulligan’s. “We think it’s great that we’re going to have some new blood here,” said Jeff Berry, J.J.’s owner. Berry and J.R. Comedy Club owner Randy Lubas were brought together by Larry Barbro of HotSpot SCV, a local ■ Randy Lubas. Courtesy photo. web design and marketing firm. “People can come in for the comedy, and stay and enjoy a couple of beverages,” Berry said. The bar, open for two years, can hold 151 people in several

■ Arthur Murray dance school. Photo by Patrick Mullen.

rooms and features what Berry says is the best patio in Santa Clarita. The comedy club will be in the main dining room. Lubas had to scramble after being told last month that he would need to find new quarters by the end of December.

Arthur Murray’s Dance Studio Opens Jean Dobre and Wendy Yamada are in their first month running a new Arthur Murray Valencia Dance Studio on Magic Mountain Parkway. The ribbon was cut last month. Dobre, a native of Bucharest, Romania, is a champion dance instructor and competitor who has won several professional dancing titles. He’s been a ballroom dancer since age nine. Yamada began dancing even younger, at five, studying ballet and tap in her hometown of Downey, Calif. She has been with Arthur Murray since 2010 and has competed in the professional American Rhythm category for the last 4 years. She holds the 2015 Canadian Salsa champion title. At its peak, Arthur Murray Dance Studios, founded in 1946, had more than 3,500 locations around the world. Today there are 260 locations in 21 countries. The Valencia studio is offering a new student special where anyone can try their first introductory lesson for free. Singles and couples are welcome and no experience is necessary.

WinTrust Mortgages Now on Town Center Road The Valencia office of WinTrust Mortgages moved over the holidays to new more centrally located office at 24510 Town Center Road, Suite 200, above Apollo’s Barber Shop. “It’s almost identical in terms of square feet, but it’s a marquee space, and we feel we’re planting our flag and letting the community know we’re here to serve them,” said branch manager Jason Renno. The branch is one of six WinTrust offices in Southern California.

“Westworld” Nominated for Golden Globes, SAG Awards HBO’s “Westworld,” which is filmed in Santa Clarita, was nominated for three Golden Globes Awards, including a nod for best dramatic television series. The show was also nominated for two SAG Awards, presented by the Screen Actors Guild. The show, created by Jonathan Nolan and Lisa Joy, is set in a futuristic Western-themed amusement park where wealthy guests (newcomers) can have their way without consequence with characters played by androids (hosts). The first episode in October had the highest ratings of any HBO debut since “True Detective” in 2014. Also nominated for best drama are “The Crown” on Netflix, “Game of Thrones” on HBO, “Stranger Things” on Netflix, and the only nominee aired on a broadcast network, “This Is Us” on NBC. “Westworld” was nominated for a SAG Award for outstanding performance by an ensemble in a drama series. Also nominated were “The Crown,” “Downton Abbey,” “Game of Thrones,” and “Stranger Things.” The SAG Awards will

be presented Jan. 29 on TNT and TBS. Evan Rachel Wood received a Golden Globe nomination for best performance by an actress in a TV drama for her work as Dolores Abernathy, the oldest host. It is her third nomination. Also nominated were Caitriona Balfe in “Outlander,” Claire Foy in “The Crown,” Keri Russell in “The Americans,” and Winona Ryder in “Stranger Things.” Thandie Newton, who plays Maeve Millay, a host and madam, received her first Golden Globe nomination for best performance by an actress in a supporting role in a series, limited series or motion picture made for television, along with Olivia Colman in “The Night Manager,” Lena Headey in “Game of Thrones,” and Chrissy Metz and Mandy Moore in “This Is Us.” Newton was also nominated for a SAG Award as best female actor in a television drama series. “Westworld” is a production of HBO Entertainment in association with Kilter Films, Bad Robot, and Warner Bros., and is produced by Nolan (who directed the pilot), Joy, J.J. Abrams, the late Jerry Weintraub, and Bryan Burk. The 74th Golden Globes, awarded by the Hollywood Foreign Press Association, will be presented Jan. 8 on NBC with Jimmy Fallon hosting.

7-Eleven Leases Space on Soledad Canyon Rd. 7-Eleven Inc. has signed a long-term lease for 3,153 square feet of space formerly occupied by Hobby People at 20655 Soledad Canyon Rd. at the corner of Ruether Ave. in Santa Clarita. “This is a great deal for the Soledad Plaza shopping center, as they were looking for more of a corporate presence,” said Yair Haimoff of NAI Capital, who was broker on the deal. “It will definitely bring more traffic to the space.” No opening date has been set for the store, according to a spokesperson for 7-Eleven Inc. The company operates, licenses, and franchises more than 56,000 stores in 21 countries. The chain currently has 11 stores in the Santa Clarita Valley, including three in Canyon Country, two in Newhall, two in Saugus, and one in Castaic.

Business Optimism Up After Election This year’s election results boosted optimism among small business owners about where the economy is heading, according to national survey released yesterday. “What a difference a day makes,” said Juanita Duggan, president and CEO of the National Federation of Independent Business, which has measured business optimism monthly since 1986. “Before Election Day small business owners’ optimism nationally was flat, and after Election Day it soared.” In November, NFIB conducted separate surveys pre- and post-election for the first time. The full November index improved 3.5 points to 98.4, rising above its 42-year average for only the third time since 2007. “The November index was basically unchanged from October’s reading up to the point of the election and then rose dramatically after the results of the election were known,” said NFIB chief economist Bill Dunkelberg. “Even without separating the data, the November results paint a starkly different picture than what we’ve seen in the last 94 months,” he said. “If higher optimism can be sustained, I expect that in the coming months we’ll see an increase in business activity, such as hiring and expanding.” The survey asks small business owners a battery of questions related to their expectations for the future and their plans to hire, build inventory, borrow, and expand. ■

■ HBO series Westworld. Courtesy photo.

JANUARY 2017

SANTA CLARITA VALLEY BUSINESS JOURNAL

Valencia Studios Sold for $19.3 Million By Patrick Mullen SCVBJ Editor

alencia Studios, the longtime Santa Clarita production home of “NCIS,” the popular CBS drama, was sold in late November for $19.3 million. The full service independent television and film production facility at 26030 Avenue Hall and 28343 Avenue Crocker has been leased by CBS Television Studios and its predecessor company, CBS Paramount Television, for more than twenty years. Valencia Studios contains a total of more than 121,000 square feet, including six sound stages ranging in size from 6,000 to 20,000 square feet, and 46,000 square feet of office and support space, with 22-24 foot minimum vertical clearance, adjustable lighting grids, and full air conditioning. The six-acre site also includes a small backlot street scene. The complex was bought by two limited liability entities, Valencia Holdings and Valencia Studio Group, formed by buyers Richard Reilly and Art Davis, according to CBRE Group Inc., which represented the sellers, Capital Foresight Limited Partnership and Valencia Studios NKG. The private buying partnership was represented by Jeffrey Andrew of Cushman & Wakefield Pacific and Jeffrey Tietzer. “Entertainment is a growth industry, and with the different production platforms emerging, we expect to see continued strong demand for space,” said Reilly. “And Valencia has proven to be a very entertainment-friendly environment.” “The City of Santa Clarita is extremely film-friendly, and we’ve seen a surge of film activity over the past five years,” said CBRE’s Craig Peters, who worked with Robert Valenziano on the sale. “With the State of California bringing back film and television tax incentives, we expect this trend to continue. Our industrial vacancy rate is approximately 1.6% within the Valencia market, so available production facilities are extremely difficult to come by. Valencia Studios is located within the Thirty Mile Zone as well, which is very valuable for production companies.”

No-Frills Space Valencia Studios was founded in 1986 by former film student Robert Thompson to provide no-frills production space in then-new industrial warehouse buildings. Thirty years later, the studio has been significantly upgraded, but is still a lower cost alternative to Hollywood studios. It is one of 20 production facilities in the Santa Clarita Valley. The emergence of streaming services and other content producers is putting a premium on studio space across Los Angeles County. Demand for space has spiked as online producers like Netflix and Amazon have ramped up investment in original programming. Between 2013 and 2015, Netflix and Amazon more than doubled their annual expenditure on programming, more than CBS, HBO, or Turner, according to London-based market analysts IHS Markit. Amazon’s spending jumped from $1.22 billion in 2013 to $2.67 billion in 2015, while Netflix spending rose from $2.38 billion to $4.91 billion in the same period.

Only Disney ($11.84 billion) and NBC ($10.27 billion) spent more.

The Secret is Out “The ‘secret’ of Valencia as a desirable filming destination has been out for years now, as it’s a cost-alternative to the major studios further south and in Hollywood,” said Valenziano. “The last available significant sound stage in the Valencia market has just been leased, which means there is essentially zero availability in this product sub-type.” He added “The real estate investment community has taken notice of the supply and demand imbalance within the studio and production space. As private and institutional capital competes for traditional core Southern California real estate investments such as

residential and office properties in our rapidly appreciating market, historically low capitalization rates have caused investors to search for investment yield in other sub-types, and entertainment-related assets have been a very attractive investment alternative.” “NCIS,” CBS’s top-rated drama, debuted in 2003. Season 14 began airing on Sept. 20 and the show has already been renewed for 2017-18. It was a spinoff of “JAG,” which was produced at the studio for 10 years. “NCIS is one of the top-rated shows on television, and we hope they’ll still in production in five years and beyond,” said Reilly. Prior to CBS, productions at the property have included “Divorce Court,” “The ATeam,” “Power Rangers,” “Moonlighting,” “Terminator 2,” and “Nightmare on Elm Street.” ■ This story appeared in The Signal on November 30.

C E L E B R AT I N G F R I E N D S H I P

More than a dealership, it’s a friendship. #OurValenciaAcuraStory “Twenty years ago we embarked on an entrepreneurial journey with the purchase of Valencia Acura at a time when the dealership ranked dead last nationally in sales and customer satisfaction. Infusing a culture of treating customers the way we wanted to be treated, we turned it into one of Acura’s highest ranking dealerships in customer satisfaction, and one of the highest in the nation for customer loyalty. Valencia Acura has been voted ‘Best Dealership in the Santa Clarita Valley’ 13 years in a row, and that’s only the beginning of our story.” — Don and Cheri Fleming, Owners

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SANTA CLARITA VALLEY BUSINESS JOURNAL

GUMP

Continued from page 1 Gump” on each unit gave Andy greater visibility and helped the venture grow. It’s a slogan that can still be seen across Southern California. “We are grateful to Larry for helping to make “Andy Gump” a generic term for a portable restroom in Southern California,” said Barry Gump, Andy’s son.

A Second Generation

JANUARY 2017

road. “I responded that I was the ‘princess of portable sanitation,’” she said. Barry and Nancy both saw opportunity for growth by going upscale, in the form of VIP trailers and executive restrooms for weddings and graduations, and larger events such as golf tournaments. These self-contained

Barry worked alongside his father and brother. While in

units don’t require outside

junior high school, they helped build and paint those first

power or water, and some

five wood restrooms in their garage, and joked about how

include

heavy the steel tubing made them. Later, after serving for

systems and TVs. When-

four years in the Air Force, Barry took over as CEO.

ever possible, Nancy made a

vanities,

music

woman-to-woman market-

A New Line of Business Continuing the business after founder Andy Gump stepped down was a natural transition for Barry. He opened a new line of business, providing temporary power to construction sites during Southern California’s construction boom, when he bought a supply of power lines

ing appeal, promising a level of comfort that men might not think much about. Re-

■ Barry and Nancy Gump hold the statue of “The Contract”, the Portable Sanitation Association International’s M.Z. “Andy” Gump Distinguished Service Award that they sponsor for the portable sanitation industry. Behind, hanging on the wall of the corporate offices in Santa Clarita is a photo of M.Z. “Andy” Gump, father and grandfather and founder of the company. Photo by Dan Watson.

search conducted at a garlic

approach helped win the Olympics contract. “We were

festival with regular and high-end units showed guests said

a small company at the time and my father and grandfa-

they were more likely to stay longer and return to an event

ther knew that this would require a big staff and hours of

and poles from an acquaintance who had obtained them in a sheriff’s sale. “Dad was really the entrepreneur and the visionary that brought in other services,” said Nancy Gump, thirdgeneration proprietor at Andy Gump, now that Barry has stepped away from day-to-day management. Nancy’s mother was also involved, handling payroll and billing and working in human relations before retiring to a higher calling: grandmother.

28 Years and Counting Nancy joined the company 28 years ago as an office assistant. During her teen years, she would spend time in the trucks with her grandfather and father. “I loved to be around them. I would witness my grandfather’s and my father’s drive and integrity. I was never pressured to join the team. I would go with my dad so that I could spend time with him,” she said. As a young woman, Nancy quickly realized that Andy Gump wasn’t exactly the most glamourous place to work. But she knew that the company was making a difference and

■ An Andy Gump Royale Executive Restroom unit at Valencia Country Club. Photo by Patrick Mullen.

featuring the fancier units.

manpower,” Nancy said. “So we included other companies

was sustainable. Given a number of unsavory nicknames,

Andy Gump’s passion and drive paid off when the com-

some playing off the family name, Nancy took the high

pany provided 800 units during the 1984 Los Angeles Summer Olympics. This contract was a game chang-

whatever it takes to get the job done well.” That attitude has fueled growth that has expanded the

er and was the impetus for

company from one storage yard to five throughout South-

moving the company to

ern California, in Santa Clarita, Antelope Valley, North

Santa Clarita. “Land here

Hollywood, Fontana, and San Diego. The North Hol-

was more affordable and ev-

lywood site, a hanger-like structure known as “the barn,”

eryone was friendly, so the

houses the company’s high-end trailer units, which have

move made sense,” Nancy

been used at the Academy Awards, Vanity Fair parties, and

said.

celebrity weddings. “If the barn is empty a couple of times

During the run-up to the Olympics, Barry didn’t concern himself with the activities of his competitors.

■ Nancy and Barry Gump look a photo of M.Z. “Andy” Gump and Barry Gump, right, hanging at the corporate offices in Santa Clarita. Photo by Dan Watson.

in the proposal. My grandfather was always willing to do

a year, we know we’re doing our job,” said Nancy Gump. Whether that job passes to a fourth-generation Gump remains to be seen. So far, the company has rebuffed ac-

In fact, he considered them

quisition feelers from larger competitors. “Andy Gump is

his allies. “A competitor

still a strong name brand in Southern California,” Nancy

is far better off as a friend.

Gump said. “The company hasn’t sold out to a huge cor-

There are times that you

poration; it’s still a family business. We work really hard to

need help,” he said. That

convey what we do, and we do it well.” ■

JANUARY 2017

SANTA CLARITA VALLEY BUSINESS JOURNAL

New Transmitters to Boost Internet Speeds for Valencia Industrial Center By Patrick Mullen

“This added capacity will provide another option for

will provide businesses with increased access to wireless

businesses to obtain wireless internet services at various

broadband services,” said Holly Schroeder, president &

speeds,” Covert said. “It provides another tool in our

CEO of the Santa Clarita Valley Economic Development

ore businesses in the Santa Clarita Valley will

city’s toolbox to help local businesses obtain the types

Corporation. “The Santa Clarita Valley is growing as a

gain access to high-speed wireless internet ser-

of internet service that are essential with the speed and

tech center, and increased access to high-speed internet

vice thanks to new equipment Skyriver Com-

reliability they require.”

is vital for our businesses to be competitive in the global

SCVBJ Editor

munications will install atop Round Mountain in coming months. Skyriver will install additional wireless capacity on

“Skyriver’s approval to install a new communication

marketplace. Collectively, these actions should improve

facility on Round Mountain near the Valencia Indus-

the speeds and options available to SCV businesses.” ■

trial Center is welcome news for our community, as it

This story appeared in The Signal on November 30.

Round Mountain, which promises to boost internet speed to business customers in the nearby Valencia Industrial Center. A statutory appeal period that started when the City of Santa Clarita approved a permit in October for the installation

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view and/or placed underground as part of construction,” and that any installation “shall not cause interference with any electrical equipment in the surrounding neighborhoods, including television, radio, telephone or computer use” or interfere with other public or private telecommunication facilities.

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SANTA CLARITA VALLEY BUSINESS JOURNAL

JANUARY 2017

BESTWAY

Continued from page 1 payment of $10,000 and allowed Haddad to pay the balance at the rate of $1,000 per month. With those five running cars as his inventory, Haddad was almost ready to go.

Location, Location, Location But before getting started, the new car rental business needed a location with ample parking, major street visibility, and a small office to conduct business. Haddad found such a space on (old) San Fernando Road in Newhall. The lot had previously been home to Dial Rent a Car. After some research, Haddad was able to secure the abandoned telephone number that Dial had given up and managed to take advantage of the then still-circulating Yellow Pages directories with Dial display ads under “car rentals.” That move brought in former customers into the new company at the same familiar Newhall location. With a skeptical landlord but with Silverman co-signing on the lease, the new Avon Rent a Car business opened its doors.

Fear: A Strong Motivator Tony Robbins, guru of growth, self-help and motivation, will tell anyone who will listen that fear is the strongest motivator on the planet. As a franchisee with rent, debt, royalties, and other expense obligations to meet, Haddad had to hustle. Not just once in a while, but seven days a week, all day long. There are many stories of well-known companies failing after many years of business. Sometimes leadership becomes complacent and sometimes things happen beyond the control of anyone in the company. In his mind, he had two choices: grow or die. Failure was not an option. Through good times and bad, this has been the foundation of how he thinks and how he has his employees thinking. To keep his finger on the pulse of the business, to manage cash flow and to maximize profits, the company has had inhouse accounting from the very start. Those first five cars were soon rented out daily and very quickly it was time to bring more cars to the lot to serve the growing demand.

Finding a Niche Even though the Santa Clarita Valley was an up and coming area as his business started and grew, Raffi knew that there were some residents and many individuals commuting into the SCV for work who did not have all the needed documents or financial wherewithal to rent from the national car rental chains, and

■ Robert Martinez providing customer service at Bestway Auto Rental & Sales. Photo by Patrick Mullen.

he actively courted these consumers. He has always believed that people deserve a second chance and that just because someone has limited credit or perhaps bad credit doesn’t make them bad people. In the financial world, these individuals are underserved by banks, credit unions, retailers and credit card companies. Yet it is a sizable and growing market. Selectively at first, but more often now, the company transitioned from renting to selling and even financing cars.

Finding Dependable Employees From the time he hired his first employee, Haddad did things differently. For starters, he made a point of paying employees more than what they could earn at the competition or in similar retail service positions. Haddad was flexible with employee scheduling, accommodating the needs of his employees for personal matters. Probably the most important thing he has done is that he has allowed each employee the authority and the responsibility to make decisions on behalf of the company. This level of trust is almost unheard of in the car rental business. All employees wear multiple hats, from renting cars to selling cars to making follow-up calls on customer issues.

■ Bestway Auto Rental & Sales on Creekside Road in Valencia. Photo by Patrick Mullen.

Growth and Expansion Haddad separated his operation from Avon in 1990, leaving the start-up as an orphan, but with a leader that was raring to expand and move forward. The company changed names those first few years, settling on Bestway for good in 2008. Haddad embraced technology within two years of opening his doors. Car rental software, in its infancy at the time, allowed Haddad to manage the fleet and maximize rentals. Being a start-up, the company wasn’t really bankable to assetbased lenders. But by using connections and family, Haddad was able to secure expensive financing for more cars in the early 1990s. Interest rates varied from 35 percent to 50 percent depending on the individual lender, but each car was slated to be profitable from the first rental and the payback period was a matter of months, not years. Cars in those days could be purchased for between $5,000 and $10,000 each. Those same type cars now cost about $20,000 (300 to 400 percent increase) but daily rental rates have only gone from $20 to $30, just a fifty percent increase.

Not Exactly Recession Proof Through the second half of the 1990s, for just over a decade, Haddad expanded his offering to include sports and luxury cars. Through this expansion period, Haddad opened other Bestway locations, including Burbank and Pasadena in 1999 and Canyon Country in 2008. The Great Recession made it necessary to rethink the growth strategy. Expensive cars were replaced by box trucks and cargo vans for household moves. Haddad sold or closed his other facilities to focus on gaining market share at the Valencia facility on Creekside Drive in Valencia, which opened in 2009. Since founding the business thirty years ago, Haddad has transformed Bestway from just renting cars to selling cars to financing cars. Future plans include offering maintenance plans, insurance services and car exchanges. The single biggest challenge facing the business is the same as it has been since day one: the cash investments made for assets (cars and trucks) rapidly depreciates and requires further capital to replenish the rental fleet. Bestway has always been in competition with national carrental brands. These firms spend significant time and money securing exclusive agreements with insurance companies, body shops and car dealerships to provide rentals to customers who need them. This will be done through local marketing to businesses, to car dealerships and by simply out-servicing the competition by providing faster service and by taking advantage of their location located near many auto dealerships in Valencia. ■ Ken Keller, owner of Strategic Advisory Boards, periodically conducts interviews with Santa Clarita Valley CEOs, business owners and entrepreneurs. The purpose of these discussions is to learn the factors underlying the growth and success of locally-based enterprises. In this edition, he interviewed the CEO of Bestway Rent-a-Car for the Santa Clarita Valley Business Journal.

JANUARY 2017

SANTA CLARITA VALLEY BUSINESS JOURNAL

At Long Last, Santa Clarita has a Cheesecake Factory By Patrick Mullen

27, 2016, Cheesecake Factory reported net income of

SCVBJ Editor

$34.6 million on revenues of $560 million, and had its

27th consecutive quarter of sales growth.

t took 38 years from the opening of the first

The Cheesecake Factory of Valencia, located at

Cheesecake Factory restaurant in Beverly Hills for

24250 Town Center Drive, # 110, across from Pot-

the chain to make it north 30 miles to Santa Clar-

tery Barn, will be open from 11:30 a.m. to 11:00 p.m.

ita. Many local residents, who consistently named the

Monday through Thursday, 11:30 a.m. to midnight

chain as the restaurant they most wanted to see open

Friday and Saturday, and 10:00 a.m. to 10:00 p.m.

here, couldn’t be happier. The newest outpost of the restaurant chain, known for an extensive menu, large portions and legendary desserts, opened at Westfield Valencia Town Center in November. The restaurant features

on Sunday, with brunch served from 10:00 a.m. to 2:00 p.m. The restaurant offers curbside to-go service, a full takeout menu, and a Friday happy hour from 4:00 p.m. to 6:00 p.m. ■

■ Customers waiting outside The Cheesecake Factory in Valencia. Photo by Katharine Lotze.

more than 250 menu items, including nearly 50 lower calorie dishes, handmade in-house items with fresh ingredients, and of course, more than 50 signature cheesecakes and desserts. Lines formed for the opening of the restaurant, which is in 8,000 square feet of retail space formerly occupied by Sunglass Hut, Talbots and the Carlton Hair salon. The deal for leasing the site closed in May. The restaurant features contemporary décor that includes imported limestone floors and custom wood columns, hand painted murals and modern lighting. “For years, Cheesecake Factory has topped our lists of most-requested tenants,” said Tom Miller, general manager of

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cake Factory America’s favorite casual dining restaurant among 40 chains in the 2016 Consumer Picks survey conducted by Nation’s Restaurant News magazine and WD Partners. Survey respondents rated the chains on 10 attributes, including food quality, cleanliness, service and

atmosphere. The Cheesecake Factory Inc., based in Calabasas Hills, owns and operates 206 full-service casual dining restaurants in the United States and Puerto Rico, including 193 Cheesecake Factory restaurants; 12 Grand Lux Cafés, and one RockSugar Pan Asian Kitchen. In the quarter ending Sept.

Online: www.scvedc.org/outlook Phone: 661.288.4400 Email: scvedc@scvedc.org

SANTA CLARITA VALLEY BUSINESS JOURNAL

JANUARY 2017

AMS Fulfillment, College Launch Apprenticeship Program By Christina Cox

tarting this month, a new apprentice program will give 13 select students at College of the Canyons a chance to earn money while they learn. The Canyons Apprenticeship Program (CAP), launched in cooperation with AMS Fulfillment, is one of two new apprenticeship programs at the college. The second program is in collaboration with the California Advanced Manufacturing Apprenticeship Collaborative South (CAMAC-South). “No official apprenticeship programs existed until now [at COC],” said Jeffrey Forrest, COC’s vice president of economic and workforce development. “There’s been a movement and national campaign for companies to invest in nontraditional and non-union based apprenticeships.”

AMS Fulfillment The program with AMS Fulfillment, a third-party resource for warehouse management, order management and fulfillment services, will provide 13 individuals with training in warehousing and shipping beginning in early 2017. According to Forrest, the California Community Colleges Chancellor’s Office issued a grant application and initiative for any community college to create a new, non-traditional apprenticeship program with a minimum of 13 apprentices. “We [COC] immediately thought of Ken Wiseman at AMS Fulfillment,” Forrest said. When Forrest approached Wiseman, he immediately agreed to the program and the college began the process of applying for the state grant. “At AMS we are fortunate that we can offer many entry level jobs each year to individuals seeking employment,” said Wiseman, CEO and managing partner of AMS Fulfillment, in a company statement. “With this new apprentice program, we will take 13-individuals and give them a chance to take their logistics job, and turn it into a career.” Within the program students will learn all phases and aspects of the warehousing and shipping within the company. “They will learn all phasing of shipping, receiving and handling of packages, as well as the software that is related to distributions and more,” Forrest said. In addition to the on-the-job training, the 13 apprentices will participate in an accelerated program at COC

that includes classroom and online instruction to align with workplace competencies. According to Dr. Dianne G. Van Hook, Chancellor of College of the Canyons, this apprenticeship program with AMS Fulfillment will result in several “firsts” for the company: • The first company in the Santa Clarita Valley to partner with a Community College to create an apprenticeship program; • The first company in the State of California to offer an apprenticeship program specializing in warehousing and shipping; • The first company in the United States to apply for a registered apprenticeship with the Department of Labor in the area of warehousing and shipping. “We are proud to be a partner with AMS Fulfillment in bringing needed skills to underserved populations within our community,” Van Hook said.

CAMAC- South The CAMAC-South program is a registered apprenticeship program specializing in 11 occupations within the advanced manufacturing industry, like machinist, maintenance technician and welder. Based on the CAMAC Standards introduced by John Dunn of American River College in conjunction with Siemens Corporation, the program aims to support local companies in developing skilled laborers. “What makes this apprenticeship so special is that it is already approved at the federal government level and we can begin this immediately with confidence,” Forrest said. “It allows us to meet the needs of companies here much more efficiently and much more quickly.” The related technical instruction (RTI) for the program will be provided by COC, Los Angeles Trade Tech and Los Angeles Valley College. “We wanted to create a regional collegiate collaborative with apprenticeship standards so community colleges…. don’t have to invent the wheel to create our own set of standards,” Forrest said. The single set of standards will allow the CAMAC-South program to be utilized by students at all three local community colleges. When individuals complete their apprenticeships within

■ Ken Wiseman, CEO/managing partner, AMS Fulfillment in Valencia. Photo by Dan Watson.

AMS Fulfillment or CAMAC-South, they will receive a certificate or credential and will eligible for pay increase and/or a promotion with their employer. At community colleges throughout California, apprenticeship programs combine on-the-job training with supplemental school instruction for three to five years while students earn an income. According to the California Community Colleges Chancellor’s Office, more than 25,000 apprentices are enrolled in 160 apprenticeship programs in 66 trade and craft titles on 39 community college campuses. “Our community colleges are proud to support tens of thousands of students every year through apprenticeships that put them on a fast track to well-paying, lifelong careers,” said Van Ton-Quinlivan, vice chancellor for workforce and economic development, in a statement. In 2011, the United States Department of Labor created Apprenticeship USA to address the issue of the untrained workforce and provide employers with the tools to create a highly-skilled workforce. ■ A version of this story was published in The Signal on Nov. 16.

Princess Cruise Lines Hit With $40 Million Penalty By Kevin Kenney

hese were high crimes on the high seas – and last month came the high price. Santa Clarita-based Princess Cruise Lines will pay a king-sized $40 million penalty in a plea deal involving illegal ocean pollution and a cover-up by some employees, federal prosecutors revealed. Princess, headquartered on Town Center Drive, pleaded guilty in Miami to seven federal charges – and the $40 million fine represents what U.S. Attorney Wifredo Ferrer said was the largest of its kind, ever. The plea deal also requires Carnival Corp., parent company of the Princess line, to submit 78 cruise ships across its eight brands to a five-year environmentalcompliance program overseen by a judge.

Finding a “Magic Pipe” According to Ferrer, the case came to light in 2013, after an engineer aboard one of the company’s ships, the Caribbean Princess, discovered a “magic pipe” spewing oily waste from the ship’s engines and fuel systems into the Atlantic Ocean off Great Britain, and reported it to authorities. It later came out the ship had been illegally dumping oily waste into the ocean as far back as 2005, reports said. Similar illegal practices were also found to have occurred

on four other Princess ships, according to reports. “We are very sorry that this happened,’’ the company said, in part, in a prepared statement – adding it had cooperated with investigators. Authorities said cost savings were the motivation — and that crew members aboard the ships had conspired to cover up the dirty doings. By law, the oily waste produced by ships’ engines must be stored onboard, then offloaded and removed to a waste facility – not dumped raw into the ocean. The Associated Press, citing court documents, reported that just one illegal discharge off the coast of England on Aug. 26, 2013, dumped 4,227 gallons of oil-contaminated waste. The Caribbean Princess crew “violated the law, they covered it up and then they lied about it,” said John Cruden, assistant attorney general for U.S. the Justice Department’s environmental division. He added: “We’re sending a strong message in this case to the entire industry.” In one other instance disclosed last month, authorities said a crew from another Princess ship used clean ocean water to “fool” sensors used to detect illegal dumping of sludgy waste. Princess’ Santa Clarita office referred questions to the company’s prepared statement. That statement read, in part:

“We are extremely disappointed about the inexcusable actions of our employees who violated our policies and environmental law when they bypassed our bilge water treatment system and discharged untreated bilge water into the ocean. “When we became aware of this back in August 2013, our headquarter’ s management cooperated with the U.S. Department of Justice (DOJ), the U.S. Coast Guard (USCG) and at the same time we launched our own internal investigation to learn all that we could about what happened. “As a result of our investigation we discovered practices, on some other ships, where we were operating out of policy and in violation of environmental law. We have reached a plea agreement with the DOJ, which was announced today.’’ The company also said, “Although we had policies and procedures in place, it became apparent they were not fully effective. We are very sorry that this happened and have taken additional steps to ensure we meet or exceed all environmental requirements.’’ The plea agreement and penalty must be approved by a Miami federal judge. If it is, $14 million of the Princess penalty will be earmarked for environmental projects in Florida, Great Britain and in international open waters, reports said. ■ This story appeared in The Signal on Dec. 2.

JANUARY 2017

SANTA CLARITA VALLEY BUSINESS JOURNAL

LA County Relaxes Rules on Winemakers By Kevin Kenney

he L.A. County health department no longer has the local wine industry over a barrel. The Board of Supervisors has freed Los Angeles County winemakers from rules under which they had been regulated like any other food-processing plant – creating what the winemakers said were unnecessary and burdensome costs that strangled the industry in the county while it booms elsewhere in the state. By a 3-0 vote with two members absent, the supervisors amended the county code to exempt wineries, distilleries and canneries from being classified with foodprocessing establishments, putting them in the same category as breweries — which are regulated by the state Department of Alcoholic Beverage Control under guidelines more specific to their products. There are several wineries in the Santa Clarita area, including Alonso Family Vineyards, the Pulchella Winery in Valencia and the Reyes Winery in Agua Dulce. They have set up shop and survived in L.A. County despite what they say have been costs and regulations that don’t apply to the production of wine. “Somehow (wineries) ended up in the same category as food processors, and that created a whole lot of requirements for the wine industry that had nothing to do with what they do, so this changes that,” said Rosalind Wayman, the Santa Clarita-based senior deputy for Supervisor Michael D. Antonovich, whose term ended last month. The Nov. 22 move by the supervisors will free them of some of those costs, such as permit fees – though not from the start-up costs they have already borne.

A Growth Spur The supervisors’ action also could spur growth in the L.A. County wine industry, making the county competitive with the likes of Ventura and Santa Barbara counties in the southern part of the state. “It cost us over $100,000 more than it should have to open the winery just to meet health department standards that were redundant and unnecessary,” Steve Lemley of Pulchella Winery told the SCVBJ in April. “Yet, some of the largest brewery plants in Los Angeles County since the 1960s have been exempt from the same regulations that strangle us.’’ Among the health-department-mandated costs Lemley cited as unnecessary for his start-up were for pricy plan checks, the installation of air curtains, concrete-floor sealants and drainage, special tiles, and a janitorial sink – all specific to food processing but not to winemaking, he said.

A Terrible Burden

The supervisors’ move came after a year-long conversa- going to improve the growth of an industry,’’ he said. tion begun by the Alonso Vineyards with Antonovich. “This will certainly have that effect.” ■ Eventually, other winemakers joined in, and the matter A version of this story was published in The Signal on went to the health department for reconsideration. Nov. 22, 2016. Cynthia A. Harding, interim director of the L.A. Public Health Department, recommended to the supervisors that they take the action they did on Tuesday. “Approving the recommendation will not preclude DPH from inspecting wineries, distilleries, or canneries on a complaint basis,’’ Harding wrote to the supervisors. Freddie Agyin, the county’s environmental health services manager, indicated to the Business Journal in April that • Quick turnaround Family Owned Business Providing: he was on board with the • Same• day service available Photos/Prints/Posters relaxed, more business• All work fully guaranteed • Shadowboxes/Needlepoint friendly rules. • Free•design consultation Custom Framed T.V.’s “We considered every• Free pickup and delivery thing that went into the • Custom Mirrors • Installation available making wine or beer and • FAST Turnaround • Special corporate pricing asked what the difference • Competitive Pricing and terms was,” he said. “We asked • Outstanding Service • No job too big or too small why a brewery was exempt • Voted Best Custom and not a winemaking faFraming in SCV multiple cility. We decided a winery yearsWe’re running PROUD to have been voted should be no different.” BUSINESS • Voted SMALL Best Small Business It should mean a rosy OF THE YEAR by the Chamber by theSCV SCV Chamber of Commerce! time ahead for the L.A. County wine industry, said 24204 Valencia Blvd. Leaf. “Any time we can reduce Present this ad and (661) 291-1325 receive $50 off your government regulation, it’s

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“They’re right – it was a terrible burden,’’ Fred Leaf, senior policy adviser to Antonovich, said of the old regulations. “(Winemakers) were having to comply with food-establishment regulations, which wasn’t consistent with the processes and the management of that particular industry, and they wanted to right that.” As a result of those old regulations, Lemley told the SCVBJ, “We are one of the few wineries in Los Angeles County.” Winemakers point out that the newly relaxed regulations don’t pose a threat to public health because wine is not susceptible to the kinds of bacteria that cause food to spoil. They note that when wine goes bad, it simply turns to vinegar.

■ Juan Alonso discusses the buds on the vines at his five-acre wine vineyard in Santa Clarita. Photo by Dan Watson.

SANTA CLARITA VALLEY BUSINESS JOURNAL

JANUARY 2017

New to Newhall: Discount Grocer Aldi’s By Patrick Mullen SCVBJ Editor

anta Clarita became the newest outpost of global discount grocer Aldi’s rapid expansion into California when it opened a store Dec. 15 on Orchard Village Rd., near Lyons Ave. in Newhall. In the last year, the German-based chain, known for low prices and limited selection, has grown from no stores in Southern California to 34, with more to come. Consistent with its strategy of building stores that are smaller than typical chain grocery stores, the Newhall store only uses about half the space of the Ralph’s Grocery that formerly occupied the site. A typical Aldi store is 10,000 - 11,000 square feet with four to five aisles, the company said. “California customers who are new to Aldi might not recognize our brands, but they definitely will recognize the great taste and quality, and will love our everyday low prices,” said Gordon Nesbit, the company’s Moreno Valley division vice president. “It’s clear shoppers throughout the country, including those in the Southland, appreciate saving money on the groceries they buy the most, including everything from fresh meat, fruits, vegetables, dairy and bakery items to organic and gluten-free foods. And it’s our approach to making great quality groceries affordable that has helped Aldi become one of the fastest growing retailers in the US. We look forward to our continued expansion across Southern California.”

Frugality, Not Frills Frugality is a hallmark of the chain, with no-frills displays and no ancillary services like in-store banking, pharmacies, or check cashing. To help keep staffing levels lower than at most chain grocers, boxes are shipped to the stores with one side missing, so they can be stacked without needing to be opened, and shoppers pack their own groceries. Rather than pay staff to retrieve shopping carts from its parking lots, the chain charges a 25-cent deposit to use a cart, which is returned when the cart is returned to its corral in the store. While the company used to only provide a bare-bones shopping experience for the neediest customers, Aldi’s has evolved into a grocery store that combines contemporary design, trendier merchandise, and a growing selection of specialty items, according to Zack’s Investment Research, which called Aldi’s “the grocery chain of the future.” The chain is regarded as a competitive threat to a range of established retailers, including Walmart, Target and Whole Foods. Brothers Karl and Theo Albrecht founded Aldi’s (short for Albrecht Discount) in 1954 with one store in Essen-Schonnebeck, West Germany. By 1960, the brothers had built the brand into a chain of 300 stores, and split it into two operations. Today, Aldi Nord (North) operates in Belgium, the Netherlands, Luxembourg, France, Poland, Spain, Denmark, and Portugal, and owns specialty grocery chain Trader Joe’s in the U.S., while Aldi Süd (South) operates in the U.S., Austria, Slovenia, the United Kingdom, Ireland, Australia, and Switzerland. More than 90% of Aldi’s inventory is made up of its own private brands, which are free of certified synthetic colors, artificial growth hormones, partially hydrogenated oils and added MSG. The company is increasing its selection of fresh food and healthier items. To reassure shoppers who might be reluctant to buy privatelabel items, the chain offers to refund the cost and replace the product if customers don’t like an Aldi brand food. The chain focuses on high-volume items, including fresh meat, fruits, vegetables, dairy and bakery items. With openings the same week in Long Beach and Escondido, Aldi’s will now have 34 outlets in California, along with a distribution center in Moreno Valley. Its other Los Angeles County stores are in Arcadia, Cerritos, Covina, Inglewood, La Puente, La Verne, Palmdale, South Gate, and Whittier. The company has more than 1,600 stores in 34 states. ■ This story first appeared in The Signal on Dec.3.

■ Santa Clarita councilwoman Marsha McLean (R) reads a proclamation to Aldi store manager Marion Hoffman and her staff at the grand opening. Photo by Tom Cruze.

■ An Aldi grocery store celebrated a grand opening in Newhall. More than 50 people were lined up two hours before the opening and triple that amount at opening time. Shoppers wait in line to enter the store. Photo Tom Cruze.

■ Shoppers peruse the items on the shelves. Photo by Tom Cruze.

■ Dararat Eustace from Santa Clarita is happy with her “Golden Ticket” $100 Aldi gift certificate. Photo by Tom Cruze.

JANUARY 2017

SANTA CLARITA VALLEY BUSINESS JOURNAL

TECH

Continued from page 7 is still a lot of work to be done especially around security and infrastructure.

Blockchain: bitcoin and beyond Blockchain has been gaining momentum and becoming one of the hottest topics across various industries. A hard to modify distributed database of ordered records called blocks, blockchain technology is the digital ledger that underpins the bitcoin digital currency. “I think we are beyond the hype and auditing phase for blockchain ,” said Loura of Rodan + Fields. “More and more people are now thinking very specifically about how to use blockchain as an enabler of peer-to-peer trust and it is changing the

game for a lot of things.” Renowned Silicon Valley venture capitalist Marc Andreessen called blockchain the distributed trust network the Internet always needed and never had. It could revolutionize the digital economy and is finding wide application, not only in the financial sector. Potential uses include cybersecurity, supply chain management, IoT, health care records, and music industry loyalty payments. It isn’t yet clear how quickly blockchain will become mainstream but it will create major disruption and should be on the radar of every technology leader. ■ This article was contributed by the CTO Forum, a non-profit organization based in Santa Clara, Calif., that brings together senior technology and business leaders to discuss and collaborate on key technology issues facing the industry and to accelerate innovation across organizations.

The Internet of Things takes off

■ Source: RS Components/DesignSpark

Marie Callender’s Closes Valencia Restaurant By Patrick Mullen SCVBJ Editor Following two years of rumors of its imminent demise, the end is near for Marie Callender’s Restaurant and Bakery on The Old Road in Santa Clarita. The eatery closed its doors on Dec. 29, employees were told last month. The site, immediately adjacent to the Magic Mountain Parkway exit off Interstate 5, will be redeveloped to include two fast food outlets, including a McDonald’s, and a convenience store. Marie Callender’s was the first establishment on what became Valencia Restaurant Row, followed by Wendy’s and El Torito Mexican restaurant. The site has long been a place to find a hot cup of coffee and piece of pie, first as Tip’s Coffee Shop, then J’s Coffee Shop, according to scvhistory.com, until the building was reconfigured and opened as a Marie Callender’s Family Restaurant in 1980. “The landlord wants more rent, and I understand that,” said Greg Morin, who was hired by Don Callender as a dishwasher in 1972 and worked at the Valencia Marie Callender’s from its opening, working his way up to become a general partner from 1990 to 2007. “In the

1990’s, the Valencia restaurant was the number one store in the chain.” Marie Callender, a noted baker, launched her pie business in the early 1940s in Orange County, delivering pies to area restaurants. Her son Don opened the family’s first pie and coffee shop in 1964 in Orange and is credited with helping to create the concept of franchising restaurants. The chain, which had 166 restaurants in 1999, now operates in 64 locations in five western states, mostly in California. The chain has gone through multiple ownership changes since the family sold it to Ramada in 1986, aiming to put restaurants next to Ramada Inns. In 2011, its parent company, Perkins & Marie Callender’s Inc., based in Memphis, went through bankruptcy, and Marie Callender’s closed 31 restaurants. While employees weren’t officially told of the Valencia closing until Dec. 20, the restaurant had been on month-to-month lease. In early December, J.R.’s Comedy Club, which had been based in the restaurant for 19 years, was told that their stay would end Dec. 23. “It’s really sad to see it close,” Morin said. “I hired kids to work there in the ’80’s, some of whom ended up getting married, and then in the 2000s, I was hiring their kids.” ■

2016: A Year of Expansion By Holly Schroeder

s I look back on 2016, the word that best sums up the year is Ex-

pansion. In so many significant ways, the Santa Clarita Valley (SCV) and the Santa Clarita Valley Economic Development Corporation (SCVEDC) have experienced exciting levels of expansion this year.

Commercial Space Expansion A significant challenge for the SCV this year was a lack of commercial space. Our vacancy rates are quite low, especially in industrial space, which is under 2% vacancy. Fortunately, 2016 brought major breakthroughs. IAC Commerce Center, a 1.3M square foot industrial development, broke ground in April and Gateway V began “walls up” construction in September which will result in three state-of-the-art industrial buildings available for occupancy in the first quarter 2017. Also, we saw several companies break ground on new facilities in the SCV. In October, Logix Federal Credit Union broke ground on its new headquarters, which will employ about 500 people. Henry Mayo Newhall Hospital began construction on

its new patient tower, which will not only add jobs but will provide needed hospital space. In November, growing tech firm Scorpion broke ground on its new headquarters, making the commitment to remain in the SCV. Scorpion plans to move in late next year, with over 300 employees on the roster.

Business Expansion in Target Clusters SCVEDC focuses on business clusters such as aerospace, digital media, and bioscience. We work to attract these companies to the SCV and help existing companies

expand. 2016 saw substantial growth in these industries. In the aerospace cluster, local manufacturer Sunvair nearly doubled its space as it moved into its new location at Valencia Commerce Center. Adept Fasteners bought land on which to build its facility at Gateway V. Family-owned Airbolt moved its operation from Sun Valley to the Valencia Industrial Center. SCVEDC supports all these companies and more through its Aerospace & Defense Coalition, which held a blockbuster event in September featuring a VP from Northrop Grumman. SCVEDC saw similar expansion in the bioscience cluster, which is a primary focus area of LA County for job growth. SCV became the new home for Avita Medical, which relocated from Northridge. Local startup SetPoint Medical is also expanding and found a new home in the Mann Biomedical Park.

Expanding Business Assistance This year, SCVEDC expanded our outreach to SCV companies – making over 100 business assistance site visits! As we learned about each company, SCVEDC offered a tailored mix of support and business services, sharing information about tax

credits, workforce training, support programs, community involvement and more. We were gratified to offer value and services to businesses representing nearly 9,000 jobs in our valley.

Expanding Reputation One of the greatest challenges facing SCVEDC is the misperception that the SCV is “just” a suburb. This year, the City of Santa Clarita was once again recognized as LA County’s Most Business Friendly City – proving that our hard work to support business expansion is bearing fruit. 2016 has been an exciting and remarkable year, one that has positioned the Santa Clarita Valley for the exciting expansion to come. We protect our great quality of life by expanding our economy, employing our citizens, and providing unparalleled opportunity. We offer businesses something they cannot find elsewhere – a quality community with space to expand, amazing support for their company’s growth, and leadership that values economic development. And that is why the Santa Clarita Valley is Still Golden®. ■ Holly Schroeder is President and CEO of the Santa Clarita Valley Economic Development Corporation.

SANTA CLARITA VALLEY BUSINESS JOURNAL

JANUARY 2017

Appointments

Neil Fitzgerald

Chris King

Carrie Lujan

Elected: 2017 National Vice President, United States Junior Chamber Formerly: President, Santa Clarita Chapter, Junior Chamber

Appointed: Vice President, Finance and Global Controller, Chief Accounting Officer, Wesco Aircraft Holdings Inc. Formerly: CFO, ICON Aircraft

Appointed: Communications Manager, City of Santa Clarita Formerly: Public Information Officer and Cable Television Manager, City of Santa Monica

Myles McNamara

Ravi S. Rajan

Teresa Todd

Appointed: Board Member, Valley Industry Association Remains with Comfort Keepers

Appointed: President, California Institute of the Arts Formerly: Dean of the School of the Arts, Purchase College, State University of New York

Appointed: Board Member, Valley Industry Association Remains with Point of View Communications

Submit Hirings, Appointments and Promotions to pmullen@signalscv.com with “SCVBJ Appointments” in the Subject line. ADVERTISING SUPPLEMENT

SBA Loans to Grow Your Business By Marianne Cederlind

businesses. Rather, the SBA sets the guide-

user commercial real estate, fully amor-

can also be used for acquiring fixed assets,

lines for these loans, which are then made

tized with no balloon payments (owner/

such as heavy machinery or other equip-

Although interest rates have been in the

by the SBA’s lending partners. When a

user is defined as a minimum of 51% of

ment, restructuring current debt, working

news lately, they remain very low, making

business applies for an SBA loan, it is actu-

total occupancy). With a maximum loan

capital and in some cases can even be used

financing an attractive option. If you own

ally applying for a commercial loan that is

amount of $5,000,000 and terms as long as

to fund the acquisition of a new business.

structured according to SBA requirements.

25 years for commercial real estate acqui-

SBA 7(a) loans and other types of special-

SBA loan guaranty requirements and

sition, construction or refinance, the 7(a)

ized lending make it possible for qualified

practices can change as the Government

Program could serve as a real solution to

businesses to get the financing they need,

alters its fiscal policy and priorities to meet

many borrowers.

often times with much more flexible terms

a small business, now is a great time to ask your banker about what the SBA has to offer. Because the programs are many and varied – and the qualifications for each are specific – working with an experienced SBA Lender to understand a bit more about how the SBA programs work is a logical first step. The SBA provides a number of financial assistance programs for small businesses. Each has been specifically designed to

current economic conditions. Therefore,

Qualifying for an SBA loan may be easier

than more conventional loan options. Two

you can’t rely on past policy when seek-

than qualifying for other, more traditional

resources to help you learn about SBA and

ing assistance in today’s market, making it

forms of financing, as the SBA programs

other forms of specialized lending are avail-

even more important to work with a lender

generally allows for a higher loan to value

able at www.sba.gov or www.MissionVal-

that can guide you through the process and

ratio, longer amortization periods and may

leyBank.com.

identify what type of program may best fit

even consider the projected income of the

Marianne Cederlind is the Executive

your needs.

business (not just historical cash flows)

Vice President and Chief Business Banker at

meet key financing needs. The most com-

When it comes to the purchase, refi-

when making a credit decision. These fac-

Mission Valley Bank, a locally-owned, full-

mon and broad reaching are the Guaran-

nance or renovation of commercial real

tors can be extremely helpful, particularly

service, independent, commercial bank with

teed Loan Programs, which facilitate debt

estate, borrowers should take a close look

to a rapidly growing company.

Preferred SBA Lender status serving the San

financing.

at the SBA 7(a) Loan Program. The SBA

Again, SBA 7(a) loans can be used by

Fernando and Santa Clarita Valleys. She can

It is important to understand that the

7(a) Loan Program offers borrowers up to

qualifying borrowers to purchase or reno-

be reached at (818) 394-2333. MissionVal-

SBA does not make loans directly to small

90% financing for the purchase of owner/

vate or refinance real estate. These loans

leyBank.com.

JANUARY 2017

SANTA CLARITA VALLEY BUSINESS JOURNAL

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Innovations in Driver-Assistive Technologies By Cheri Fleming Valencia Acura The warm and sunny Southern California climate makes it easy to understand how Los Angeles earned its car-crazed reputation. In fact, the cars we drive often reflect as much about who we are as they do about our style and preferences. But beyond the external attributes, there’s an even more important aspect to consider: Safety. It’s a broad term for a complex network of systems that work together to secure a vehicle and its occupants to keep them safe and sound. Annually, the Insurance Institute for Highway Safety (IIHS) tests and evaluates two aspects of safety. They look at crashworthiness — how well a vehicle protects its occupants in a crash — and crash avoidance and mitigation — technology that can prevent a crash or lessen its severity. To determine crashworthiness, the IIHS rates vehicles based on performance in five tests: moderate overlap front, small overlap front, side, roof strength and head

restraints. In the area of crash avoidance and mitigation, vehicles with available front crash prevention systems are rated based on the type of system and performance in track tests. Acura believes driving a luxury car should be a highly enjoyable experience. And while the brand tends to dwell on the more exhilarating aspects of our vehicles, safety has always been a top priority. This month, Acura announced the 2017 Acura MDX earned Top Safety Pick+, the highest designation from the IIHS, for its fourth consecutive year. Acura earned a total of two Top Safety Pick+ (Models 2017 MDX and 2017 RDX with available AcuraWatch) and two Top Safety Pick ratings (Models 2017 ILX with available AcuraWatch and 2017 RDX), making the brand a top leader in safety ratings in the automotive industry. Curious about AcuraWatch™? It’s an impressive suite of active safety and driverassistive technologies offered as standard equipment on all 2017 MDX and 2017 RLX models, and available on all 2017 Acura sedans and SUVs. AcuraWatch

technologies include Collision Mitigation Braking System™ (CMBS™) with Forward Collision Warning (FCW), Road Departure Mitigation (RDM) with Lane Departure Warning (LDW), Lane Keeping Assist System (LKAS) and Adaptive Cruise Control (ACC) with Low-Speed Follow (LSF). All new Acura models come with a multi-angle rearview camera as standard equipment. Additional standard safety equipment on all models include Advance Compatibility Engineering™ (ACE™) body structure; Vehicle Stability Assist™ (VSA®) with traction control; Anti-lock Braking System (ABS); side curtain airbags (some vehicles equipped with a rollover sensor as well); advanced front airbags; and front side airbags. In addition to active safety, passive safety features are at the heart of design. The first line of defense in collision safety lies in the structure of the car itself. Acura’s Advanced Compatibility Engineering™ (ACE™) and unit-body construction are both engineered to help absorb crash energy and offer

protection to the cabin and its passengers. Inside Acura’s passenger cabins, advanced dual-stage, multiple threshold “SmartVent” front air bags, as well as front side air bags, and side curtain air bags help keep occupants safe when trouble becomes inevitable. Acura models are also equipped with breakaway steering columns and other systems designed to keep items under the hood out of the cabin in the event of a collision. This unrelenting desire for safety drives Acura to create technologies that are as innovative as they are effective. Celebrating 20 years serving the community, Valencia Acura is a local, family-owned car dealership located at 23955 Creekside Road in Valencia. Valencia Acura has been recognized as a prestigious Acura Precision Team Dealer of Distinction for 10 years, awarded Acura’s Council of Excellence for 11 years, and voted Santa Clarita’s Best New Car Dealership for 13 years by the Signal newspaper. Owners Don and Cheri Fleming can be reached at (661) 255-3000. Visit www.ValenciaAcura.com.

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Overcome IT Performance Issue with These Four Proven Practices A Hardware Refresh

By James Deck CEO, JD Systems Is your network running a little sluggish? Computing hardware isn’t perfect and requires a certain level of maintenance in order to keep everything running at capacity. Before you swap out your old server units for new ones, try these maintenance best practices.

Update Your Software Whatever software you use, it’s a best practice to run the most up-to-date version. In addition to providing your system with improved security, software updates will often include fixes to bugs that tend to slow things down (not to mention put you at risk for viruses and other online threats). To take full advantage of the benefits of running updated software, it’s always best to have a solution in place that upgrades your system in a timely fashion. With a Managed IT service plan, for example, network upgrades can be installed remotely – and regularly – so that you never have to worry whether you are operating on the latest version of your software.

Corrective Maintenance One of the most unpleasant hardware maintenance practices is fixing an issue that has disabled your system. Performing corrective

iStock

maintenances like this can be expensive, and breakdowns always seem to happen at the worst possible time. Regardless, fixes like this must be done so your business can function. At JD Systems, we’ve found that the best way to approach corrective maintenance is to prevent these breakdowns from happening in the first place. This is the route we take with our preventative IT care.

Server Virtualization Depending on how old your problem-prone

server unit is, and depending on if you possess another server unit that runs well and is underutilized, you can migrate the data off your older server unit to your newer, more powerful one. This is a solid practice that will save you money by not having to pay for maintenance on two separate units. It will also free up space. However, it’s important to know what you’re doing before making such a move because over-consolidation with excessive virtual machines on a physical server can lead to deteriorating performance and system instability.

For network equipment like server units, it’s standard to get three to five years of use out of them before experiencing performance issues that might cause you to seriously consider replacing them. Depending on the severity of your issues, you may be able to extend the life and improve the performance of your server with a hardware refresh. This includes installing additional CPUs or RAM, as well as upgrading the storage. It’s a tough call choosing whether or not to go with a hardware refresh or to replace the unit altogether. For this reason, it’s always a good idea to first check with your IT consultant. Implementing these best practices will minimize performance issues and extend the life of your server units. Of course, technology isn’t perfect and every piece of hardware will eventually fail. When it does, you’ll have to purchase replacement hardware that meets the needs of your business. James Deck is the Chief Executive Officer of JD Systems and an innovator in the information technology field for nearly two decades specializing in Managed Services, Cloud Solutions, and mobile and web application development. The content for this article is produced by Directive. James can be reached at jdeck@jdsystemsinc. com or (626) 486-9330.

SANTA CLARITA VALLEY BUSINESS JOURNAL

THE LIST Rank

JANUARY 2017

SCV Hotels (Listed by room count)

Hotel name

# Average Rooms price

Year built

Business-related accomodations and contact

Contact information

Hyatt Valencia

244

$149-$319

1998

Complimentary Wi-Fi, full restaurant and lounge, al fresco dining option on patio with fireplace, valet, eight ballrooms, business center, sundry market.

24500 Town Center Dr., Valencia 661-799-1234 www.valencia.hyatt.com

Embassy Suites Valencia

156

$129-259

2007

Banquet rooms, boardroom, restaurant, bar, Wi-Fi.

28508 Westinghouse Pl., Valencia 661-257-3111 www.embassysuites3.hilton.com

Hilton Garden Inn Valencia Six Flags

152

$89-$215

2007

Free Wi-Fi, business center, restaurant buffet $11.95, 4 conference/ballrooms, mini fridge, microwave, pool, gym.

27710 The Old Rd., Valencia 661-254-8800 www.hiltongardeninn3.hilton.com

Courtyard Valencia

140

$129-$199

2003

One boardroom for up to 10 people, one meeting room for up to 50 people, free Wi-Fi, catering.

28523 Westinghouse Pl., Valencia 661-257-3220 www.marriott.com/hotels

Hampton Inn Santa Clarita

128

$130-$209

1987

Full kitchens in rooms, one meeting room for up to 30, free Wi-Fi, catering.

25259 The Old Rd., Newhall 661-253-2400 www.hamptoninnsantaclarita.com

Rodeway Inn Magic Mountain Area

120

$59-$129

1989

Free Wi-Fi, continental breakfast, pool, some handicapaccessible rooms. Call reservations for a corporate rate.

31558 Castaic Rd., Castaic 661-295-1100 www.rodewayinn.com

Holiday Inn Express Valencia

118

$119-$189

2002

Conference room for up to 50 people, free Wi-Fi, business center, fitness center.

27513 Wayne Mills Pl., Santa Clarita 661-284-2101 www.hiexpress.com

La Quinta Inn & Suites Santa Clarita

112

$119-$189

2006

Boardroom seating for eight, meeting room seating for up to 40 people, free high-speed Wi-Fi, free breakfast, fitness center, outdoor heated swimming pool and spa.

25201 The Old Rd., Stevenson Ranch 661-286-1111 www.laquintasantaclaritastevensonranch. com

Extended Stay America Hotel

104

$89.99$109.99

2000

Free Wi-Fi and free grab-and-go breakfast. Ask for Jaquie Townsend.

24940 W. Pico Canyon Rd., Valencia 661-255-1044 www.extendedstayamerica.com

Comfort Suites

100

$109-$240

1997

Free Wi-Fi, continental breakfast, fitness center, pool, business center with computers and printers.

25380 N. The Old Rd., Stevenson Ranch 661-254-7700 www.comfortsuites.com

Residence Inn Santa Clarita

$159-$329

1997

Full kitchens in suites, one boardroom for up to 10, five meeting rooms up to 150, free Wi-Fi , catering, pet friendly.

25320 The Old Rd., Santa Clarita 661-290-2800 www.marriott.com

Fairfield Inn Santa Clarita

$98-$210

1997

Meeting room space is shared with Residence Inn, free WiFi, pet friendly.

25340 The Old Rd., Santa Clarita 661-290-2828 www.marriott.com/hotels

Days Inn Castaic

$59-$74

n/a

Free Wi-Fi, guest laundry, free continental breakfast, spa, fridge and microwave.

31410 Castaic Rd., Castaic 661-295-1070 â&#x20AC;&#x17D;www.daysinn.com

JANUARY 2017

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

California Competes Tax Credit?

ave you heard about the California Competes Tax Credit? It’s an income tax credit available to businesses who want to come, stay or grow

in California. Through a two-phase process, businesses apply and compete for this credit during three application periods each year. Phase I is an online application process, where businesses submit information on their 5-year growth plans including new hires and wages, and projected amount of investment equipment and facilities, and their requested tax credit. A cost-benefit ratio is then calculated, and companies with the most advantageous cost-benefit ratio move on to Phase II for final negotiation. The next application period is January 2, 2017 through January 23, 2017, with $100 million available, followed by an application period from March 6, 2017 through March 27, 2017 with $68.3 million plus any remaining unallocated amounts from the previous application periods.

iStock

25% of the total amount each fiscal year is reserved for small businesses (less than $2 million in gross receipts in prior tax year). The California Competes Tax Credit awards are based on 11 factors:

• Opportunity for future growth and expansion

which consists of the State Treasurer, the Director of

• Other incentives available in California

the Department of Finance, the Director of GO-Biz and

• Overall economic impact

one appointee each by the Speaker of the Assembly and

• Strategic importance to the state, region, or locality

Senate Committee on Rules.

This is a tax credit against the income tax due to

• Number of jobs created or retained

the Franchise Tax Board, which is non-refundable and

• Compensation paid to employees

includes a six tax year carry-over provision. Addition-

• Amount of investment • Duration of proposed project and commitment to

ally, it’s tied to achieving contractual milestones (such as hiring and/or investment) and is subject to recapture

remain in this state • Extent of unemployment or poverty in business area • Extent the benefit to the state exceeds the amount of the tax credit • Incentives available in other states

provisions.

For more information about the California Competes Tax Credit, contact SCVEDC at (661) 288-4400. The Santa Clarita Valley Economic Development Corporation (SCVEDC) is a unique private / public partnership representing the united effort of regional industry and government leaders. The SCVEDC utilizes an integrated approach to attracting, retaining and expanding a diversity

The California Competes Tax Credit agreements are

of businesses in the Santa Clarita Valley, especially those in

negotiated by GO-Biz and approved by a statutorily

key industry clusters, by offering business assistance services

created “California Competes Tax Credit Committee,”

and other resources.

Econo Watch Santa Clarita Valley

Source: Santa Clarita Valley Economic Development Corporation

Q3 ’16

Q2 ’16

Q2 ’16 Sq Ft

Commercial Vacancy Rates Office Space

10.60%

10.40%

511,910

Industrial Space

2.30%

3.10%

439,602

Retail Space

4.90%

5.20%

619,637

Total Marked Sq. Ft. Vacancy Percentage Office Space - as a % of Vacancy

32.58%

28.28%

N/A

Industrial Space - as a % of Vacancy

27.98%

34.37%

N/A

Retail Space - as a % of Vacancy

39.44%

37.35%

N/A

Nov ‘16

Oct ‘16

Nov ’15

Commercial/Industrial Building Permits

Residential Building Permits

Building Permits

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)

Nov ‘16 11.6 0.47 17.4 27.9 51.41 9.5 58.83 67.73 42.54

Oct ’16 11.35 0.42 10.26 23.5 49.1 9.3 55.65 58.98 41.69

% Change 2.20% 11.90% 69.59% 18.72% 4.70% 2.15% 5.71% 14.84% 2.04%

Unemployment Rates Santa Clarita Palmdale Lancaster Glendale LA County California

Nov ‘16 Oct ‘16 % Change 4.4% 4.6 -4.35% 6.5% 6.8 -4.41% 5.4% 5.7 -5.26% 4.7% 4.9 -4.08% 4.8% 5.1 -5.88% 5.3% 5.5% -3.64%

SANTA CLARITA VALLEY BUSINESS JOURNAL

JANUARY 2017

2017…A New Beginning and Time for Resolutions! Happy New Year!

and in California, our elected officials – City, County, State and National, our Sponsors and Donors, our Board of Directors, our Selfless Volunteers – The Ambassadors, and first and foremost, our dedicated and hardworking Business Members. Together, these groups and individuals comprise the engine of commerce that makes our community thrive. So to all these individuals, businesses and groups, we share the following New Year’s Resolutions:

his truly is a time for hope and new beginnings in so many ways. This year we are celebrating the 30th Anniversary of our great City of Santa Clarita. The partnership between the City and the Chamber has been a fabulous one. And while we look back at the history, right now is a time of looking forward to what promises to be an incredible new opportunity for a renewal of vows in this marriage of Chamber and City, leading to great opportunities for new jobs and an even better economy. We are blessed with new elected officials for our Valley – a new Mayor, a new Supervisor, a new Assemblyman, and two new State Senators. Along with our Congressman, Steve Knight, we can rest assured that Cameron Smyth, Kathryn Barger, Dante Acosta, Scott Wilk and Henry Stern will continue their traditions of understanding the needs of commerce and industry and strive along with the Chamber to strengthen opportunities for economic development and employment in the Santa Clarita Valley. It is often said that “small business drives the American economy.” That statement is more than mere sentiment in the Santa Clarita Valley, where small businesses and entrepreneurship are thriving and proliferating. In 2016, the Chamber welcomed 141 new members. Of these,

the clear majority were businesses with less than five employees. We celebrated 46 grand openings and 14 business mixers hosted by members. These companies have worked diligently to market their products and services through their membership in the Chamber, and they have taken advantage of the myriad of activities and networking events the Chamber offers. Our members of larger size have been inspirational and supportive through committee service, board activity, and sponsorship. The importance of this support is valuable beyond measure. The Chamber moves into 2017 with some clear directions to offer still more to our members. However, before we share our resolutions, we have some words of appreciation to share. We appreciate and thank the network of Chambers of Commerce throughout the United States

The SCV Chamber of Commerce resolves in 2017 to: • Provide expanded and new opportunities for Business-to-Customer interaction; • Strengthen our role as advocates to government on behalf of our members; • Continually seek input from our members regarding their needs and vision; and • Remember to always express appreciation for our great Country, State and City for our special way of life. With that, we say “thank you”, and best wishes for a Prosperous and Happy New Year! For information on joining the SCV Chamber of Commerce, visit our website at scvchamber.com or call Lois Bauccio at 661-702-6977.

Ribbon Cuttings

Valencia Symphony Orchestra

360 Auto Clinic

SCOI

Valley Recovery Center

For information on these and other Chamber members, visit the Member Directory at scvchamber.com

JANUARY 2017

SANTA CLARITA VALLEY BUSINESS JOURNAL

Meet VIA’s 2017 Board of Directors VIA Luncheon Planning Calendar 2017 As a resource connecting business and industry, VIA’s luncheon program on April 18, 2017 will feature a speaker discussing the change in statutes affecting building in California. Visit VIA.org for details and reservations. For more information related to the city permit process, visit ThinkSantaClarita.com or contact the city of Santa Clarita Economic Development staff at (661) 255-4347.

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, January 17, 2017 Carl A. Castro, Ph.D., from the Center for Innovation and Research on Veterans and Military Families discusses veterans’ employment issues following military service.

Tuesday, February 21, 2017 LOCATION: Hyatt Regency Valencia, 24500 Town Center Dr, Valencia David Poole and Brian Koegle, Partners, Poole & Shaffery, LLP, present the 2017 Employment Law Update.

Ed Masterson, sales and marketing manager with SOS Entertainment, returns for a second term as 2017 Chairman of the Board. With a background in entertainment, Masterson sports a long list of accolades and accomplishments in the local business community. He has served as Chairman of the Board (2005) and as Interim President/CEO (2010) for the Santa Clarita Valley Chamber of Commerce. More recently, Masterson received the 2014 SCV Chamber of Commerce, “SCV Community Volunteer” award, and SOS was named “VIA Business of the Year” by the Valley Industry Association in 2014.

Newly Elected and Re-elected Board Members (alphabetical) Jerry Buckley, College of the Canyons (Incumbent) Terry Mayfield, Landsberg (Incumbent) Myles McNamara, Comfort Keepers (New board member) Jill Mellady, Mellady Direct Marketing (Incumbent) Gloria Mercado-Fortine, Global Education Solutions (Incumbent) Jonathan Miller, Henry Mayo Newhall

The Valley Industry Association’s Board of Directors is comprised of 23 members with staggered election years. When identifying potential board members, the committee looks for diversity among industries and the type of position candidates hold in their organizations. VIA strives to achieve complete skill sets on the Board, including skills in the areas of finance, organization, operations, marketing, and fundraising, among others. A member’s willingness to oversee committees and ability to contribute time, talent and resources to VIA helps the organization achieve its top level standing in the business community.

Hospital (Incumbent) Teresa Todd, Point of View Communications (New board member)

Returning Board Members Ed Masterson, SOS Entertainment, 2017 Chairman of the Board Byron Alvarado, The Strategy Partners Hillary Broadwater, QM Design Group Tim Burkhart, Six Flags Magic Mountain J.C. Burnett, Courier-Messenger, Inc. Denise Covert, City of Santa Clarita

Roger Doumanian, Fresh Element Jeanne Duarte, Storm Water Resources Carl¬¬ Kanowsky, Kanowsky & Associates Laura Kirchhoff, American Diabetes Association Michael Little, Poole & Shaffery, LLP Diana Meyer, Logix Federal Credit Union Henry Rodriguez, Henry Rodriguez State Farm Chris Schrage, LBW Insurance & Financial Services Gary Sproule, The Signal Greg Wells, California United Bank

Navigating the City of Santa Clarita’s Permit Process for Tenant Improvements

pening a new business or moving an existing, thriving business can be overwhelming: finding a site, negotiating a lease, getting the necessary permits, and then opening the doors. Sounds simple, right? It can be overwhelming, but there is help. The Valley Industry Association represents business interests throughout the Santa Clarita Valley and is a resource for business information. VIA works closely with the city of Santa Clarita and local industry to address business’s needs, no matter how big or small. This includes helping businesses understand the permit process and providing access to resources. The city adopts the California Building Code, which requires businesses to obtain a building permit prior to constructing, enlarging, altering, repairing, or modifying a business space. The building codes provide

California citizens with the highest level of fire and life safety, earthquake safety, access for the disabled, energy efficiency and resource conservation. Complying with the codes also adds value to businesses and properties in Santa Clarita. Navigating the city’s Permit Process can be easy with the right tools. The city publishes a “Guide to Opening a Small Business” (http://econdev.santa-clarita.com/ files/2013/03/DB-Guide-Small-Business. pdf), designed to help successfully open a small business within city limits, and encompasses federal, state, county, and city regulations and requirements. The timeline for obtaining permits depends on the type, size, and scope of the tenant improvements. Additionally, because of the complexity California’s building codes, it is highly recommended that you obtain the services of a qualified design

professional who has experience with your type of project and with the permit process. A California licensed architect or engineer can help guide and assist through the process and should be involved early in the project. Businesses are encouraged to meet with city staff early in the process. Whether a business is thinking about signing a lease on a new space or looking to make changes to an existing space, the city is a resource to help make the process smoother. If during the permit process the applicant becomes confused or overwhelmed, the city has a team of economic development professionals willing to help. The city’s Permit Center on the first floor of City Hall (Suite 140) offers a convenient location for businesses to speak to staff from Planning, Building & Safety, and Engineering Services,

and is open Monday through Thursday from 7:30 a.m. to 5:30 p.m., and Friday from 8 a.m. to 5 p.m. Plan reviews can take place over the counter between 7:30 a.m. and 11 a.m. Monday through Thursday and 8 a.m.to11a.m.onFridays,orbyappointment.

SANTA CLARITA VALLEY BUSINESS JOURNAL

JANUARY 2017

REAL ESTATE SECTION – Commercial, Industrial, Retail & Land Retail Buildings

Sq. Ft.

Sale/Lease

23154 Valencia Boulevard

10,300

Lease

$1.25 SF/MO/NNN

1,999 - 2,800 - 3,000

Lease

$2.50 - $3.00 SF/MO/NNN

Valencia Mart

25830-25848 McBean Parkway

Granary Square

21515 Soledad Canyon Road

Price

2,552

Lease

$1.25 SF/MO/NNN

916, 922, 1,022, 1,239

Lease

$2.00 SF/MO/NNN

2,250 - 3,500

Lease

$1.50 - $2.00 SF/MO/NNN

25739 Wayne Mills Place

1,061

Lease

$3.00 SF/MO/NNN

20605 Soledad Canyon Road

1,500

Lease

Negotiable

23323 - 23453 Lyons Avenue

2,575, 2,280, 3,600, 7,600

Lease

$1.50 - $3.25 SF/MO/NNN

Golden Oak Plaza

26477-26557 Golden Valley Road

Centre Pointe Marketplace

18597 – 18607 Soledad Canyon Road

Canyon Square

The Shops at Tourney Free Standing Building

Old Orchard Shopping Center Patti Kutschko (Daum Commercial) 661-670-2003

23300 Cinema Drive

1,294

Lease

Cinema Park Reena Newhall 661-253-3344

23333 Cinema Drive

2,733

Lease

$2.50 SF/MO/NNN $2.50 SF/MO/NNN

Keith Bowers (NAI Capital) 661-705-3563

24254 – 24409 Main Street 500 – 6,000 24406 Main Street 1,550 24406 Main Street - Mixed Use Project 800 - 20,000 22520 Lyons Ave 1,000 - 2,200

Lease Lease Lease Lease

$1.65 SF/MO/NNN $1.50 SF/MO/NNN $2.25 - $3.00 SF/MO/MNN $2.25 - $3.00 SF/MO/MNN

24271 Main Street

900 - 2,160

Lease

$1.75 SF/MO/MNN

23120 – 23130 Lyons Avenue

900 – 5,000

Lease

$1.10 - $1.60 SF/MO/NNN

26865 – 26889 Sierra Highway

1,350 – 1,907

Lease

$2.35 SF/MO/NNN

25269 The Old Road

1,300 – 2,442

Lease

$1.50 SF/MO/NNN

3,053

Sub-Lease

$3.35 SF/MO/NNN

1,298 - 2,596

Lease

$2.00 - $2.25 SF/MO/NNN

600 - 2,362

Lease

$1.65 SF/MO/NNN

Laemmle Theatre Project Old Town Newhall Properties

Wayman Court Riverview Plaza Sunset Pointe Plaza

24003 Newhall Ranch Road

Bridgeport Village

25810 - 25852 West

Stevenson Ranch Plaza Tim Crissman (Re/Max-Crissman Commercial Services) 661-295-9300

23542-23560 Lyons Avenue

Plaza Posada Matt Sreden (NAI Capital) 818-742-1660, Cameron Gray (NAI Capital) 661-705-3569

28207- 28313 Newhall Ranch Rd.

8,090 - 11,090

Lease

$1.95 SF/MO/NNN

28112 - 28136 Newhall Ranch Rd.

1,195 - 3,650

Lease

$2.75 SF/M0/NNN

27923 – 27959 Seco Canyon Rd.

1,500 - 1,600

Lease

$2.50 SF/M0/NNN

18,000 - 54,000

Lease

Negotiable

SEC Newhall Ranch Rd. & Rye Canyon Rd. 1,500 - 10,000

Lease

$2.50 - $3.25 SF/MO/NNN

23600 Valencia Boulevard

5,000

Lease

$2.75 SF/MO/NNN

1,200 - 4,800

Lease

$2.50 SF/MO/NNN

23922 Summerhill Lane

1,195

Lease

$2.75 SF/MO/NNN

27544 Newhall Ranch Road

1,500

Lease

$2.50 SF/MO/NNN

Gateway Village Highridge Crossing

Seco Canyon Village

27095 McBean Parkway

The Promenade

Copper Ranch Plaza Creekside Place

27647 Bouquet Canyon Road

Bouquet Canyon Plaza Summerhill Village

Plaza Del Rancho John Cserkuti (NAI Capital) 661-705-3551

19045 Golden Valley Road, Unit #115

4,040

Sub-Lease

Office/Commercial Buildings 20605 Soledad Canyon Road 28005 Smyth Drive

$1.30 SF/MO/MG $1.30 SF/MO/MG

2,600

Lease

$1.15 SF/MO/MG

145- 350

Lease

Negotiable

28159 Avenue Stanford Unit #200 18,074 Lease Unit #224 1,414 Lease Unit #226 1,084 Lease Unit #170 2,829 Lease

$1.50 SF/MO/FSG $1.50 SF/MO/FSG $1.50 SF/MO/FSG $1.50 SF/MO/FSG

The Lyons Building Andrew Ghassemi (NAI Capital) 661-705-3039, Yair Haimoff (NAI Capital) 818-203-5429

28486 Westinghouse Place, Suite #100

Gateway Corporate Point Andrew Ghassemi (NAI Capital) 661- 705-3039, Yair Haimoff 818-203-5429

23300 Cinema Drive

Cinema Park/Executive Suites Reena Newhall 661-253-3344

Rexford Valencia Industrial Park Richard Ramirez (CBRE) 818- 907-4639, Robert Valenziano (CBRE) 818- 907-4663, Craig Peters (CBRE) 818- 907-4616

25322 Rye Canyon Road 25230 Avenue Stanford 26320 Diamond Place #170 26320 Diamond Place #200 26330 Diamond Place #190

27630 The Old Road 24300 – 24305 Town Center Drive 24510 Town Center Drive

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

Cody Chiarella (CBRE) 818-502-6730

24048 Newhall Avenue 27516 The Old Road

7,200 2,000 - 6,500

Sale Lease

488

Sublease

$3.35 SF/MO/NNN

23542 - 23560 Lyons Avenue

420 - 1,637

Lease

$1.65 SF/MO/NNN

1,790

Sublease

$1.15 SF/MO/NNN

Bridgeport Village Tim Crissman (Re/Max-Crissman Commercial Services) 661-295-9300 Plaza Posada

28486 Westinghouse Place, Unit #110

Matt Sreden (NAI Capital) 818-742-1660, Cameron Gray (NAI Capital) 661- 705-3569

28494 Westinghouse Place

552 - 2,208

Lease

$2.25 SF/MO/MG

27200 Tourney Road

2,181 - 22,919

Lease

$2.20-$2.65 SF/MO/FSG

25129 The Old Road 23822 Valencia Blvd.

2,300 857 - 4,104

Lease Lease

$2.45 SF/MO/FSG $2.25 SF/MO/FSG

23929 Valencia Blvd.

2,923

Lease

$2.35 SF/MO/FSG

1,866 - 10,965

Lease

$2.25 SF/MO/FSG

645-910

Lease

$1.50 SF/MO/MG

Valencia Atrium Tourney Pointe Valencia Oaks Bank of America Tower

27202, 27220 & 27240 Turnberry

Summit at Valencia

25600 Rye Canyon Road

Kevin Fenenbock (Colliers Int.) 661-253-5204

27451 Tourney Road 3,392 Sublease 28480 Avenue Stanford 6,187 Sublease 25060 Avenue Stanford Suite #255 1,755 Lease Suite #260 1,940 Lease Suite #285 2,728 Lease Suite #295 1,133 Lease 25061 Avenue Stanford, Suite #100, Ind/Flex 5,687 Lease 25020 Avenue Stanford, Suite #100 Ind/Flex 943 Lease Suite 200, Ind/Flex 3,131 Lease

$1.85 SF/MO/FSG $1.85 SF/MO/FSG $1.85 SF/MO/FSG $1.85 SF/MO/FSG $1.10 SF/MO/Gross $1.10 SF/MO/Gross $1.10 SF/MO/Gross

24501 Town Center Drive, Suite #103

$2.30 SF/MO/NNN

Paragon Business Center John Erickson (Colliers Int.) 661-253-5202

27737 Bouquet Canyon Road

1,084- 2,191

Lease

$1.70 SF/MO/NNN

Andrew Ghassemi (NAI Capital) 661-705-3039, Randy Cude (NAI Capital) 661-705-3553, Yair Haimoff (NAI Capital) 818-203-5429 18926 - 18932 Soledad Canyon Road 900- 3,000 Lease Knoll Shopping Center

24250 Lyons Avenue

1,200

Sub-Lease

$1.75 SF/MO/NNN

$2.00 SF/MO/NNN

The Moss Center

Lease

1,814

Lease

$1.80 SF/NNN

915- 3,060

Lease

$2.65 - $2.80 SF/M0/FSG

1,187 - 20,000

Lease

$2.75 SF/MO/FSG

25350 - 25360 Magic Mountain Parkway 1,500 - 8,000

Lease

$2.85 SF/MO/FSG

24200 Magic Mountain Parkway

1,300 - 6,000

Lease

$2.25 SF/MO/NNN

2,389

Lease

$2.35 SF/MO/FSG

200 - 850

Lease

$1.75 SF/MO/FSG

486

Lease

$3.65 SF/MO/FSG

25115 Avenue Stanford

1,701 - 10,600

Lease

$1.75 SF/MO/FSG

Mann Bio-medical Park Craig Peters (CBRE) 818-907-4616, Doug Sonderegger (CBRE) 818-907-4607 Westridge Executive Plaza Richard Ramirez (CBRE) 818-907-4639, Craig Peters (CBRE) 818-907-4616 The Commons at Valencia Gateway

Gateway Plaza

VTC IV David Solomon (CBRE) 818-907-4628 Valencia Executive Plaza Branson Brinton (SCV Commercial) 818-414-7657

21704 Golden Triangle Road

Yair Haimoff (NAI Capital) 818-203-5429

2,810

Hillside Professional Center Dan Robinson (Archer Real Estate) 661-255-0154

24001 Newhall Ranch Road, Suite #260

Bridgeport Marketplace Craig Peters (CRRE) 818-907-4616, Doug Sonderegger (CBRE) 818-907-4607

28111 Bouquet Canyon Road

850 - 3,000

Lease

$1.35 - $2.50 SF/MO/NNN

Valencia Park Executive Center Richard Ramirez (CBRE) 661-907-4639, Robert Valenziano (CBRE) 818-907-4663

26111 Bouquet Canyon Road

1,000 - 3,000

Lease

$1.75 - $2.00 SF/MO/NNN

18710 Soledad Canyon Road

1,250 - 3,000

Lease

$2.25 SF/MO/NNN

278737 Bouquet Canyon Road

1,021 - 2,191

Lease

$1.80 - $2.00 SF/MO/NNN

Santa Clarita Place

$2.35 SF/MO/FSG $1.50 SF/MO/FSG

Craig Peters (CBRE) 818-907-4616, Sam Glendon (CBRE) 818-502-6745

27201 Tourney Road $283.00 SF/$2,040,000 Negotiable

Sale $2.57 SF/MO/NNN/$6,500,000 Lease $1.45 SF/MO/MG Lease $1.15 SF/MO/NNN Lease $1.55 SF/MO/NNN Lease $1.15 SF/MO/NNN

24001 Newhall Ranch Road

25152 - 25154 Springfield Court

Sarkis Ghazaryan (NAI Capital) 661-705-3561

25,200 5,000 2,332 5,562 3,460

Yair Haimoff (NAI Capital) 818-203-5429

20655 Soledad Canyon 23323 Aqua Dulce Road 19971 Soledad Canyon Road 18517 Soledad Canyon Road

$45.00 SF/$99,000 $45.00 SF/$99,000 $56.00 SF/$65,000 $117.00 SF/$129,000

Price

Sale/Lease $2.00 SF/MO/NNN/$825,000 Sale TBD Lease Lease

26650 The Old Road

Sale Sale Sale Sale

Sale/Lease

402-1,700 1,350

The Plaza at Golden Valley Yair Haimoff (NAI Capital) 818-203-5429-1659, Matt Sreden (NAI Commercial) 818-742-1660, Randy Cude (NAI Commercial) 661-414-2004

2,200 2,200 1,150 1,100

1,500 8,946

Kevin Tamura (Daum Commercial) 661-670-2001, Ron Berndt (Daum Commercial) 661-670-2000, Patti Kutschko (Daum Commercial) 661-670-2003

22777 Lyons Avenue, Suite #219 22777 Lyons Avenue, Suite #100

25102 Rye Canyon Loop, Unit #120 $1.65- $1.75 SF/MO/NNN

Sq. Ft.

28470-28490 Avenue Stanford

1,273 - 10,600

Lease

$2.65 SF/MO/FSG

Santa Clarita Plaza

Valencia Corporate Plaza Craig Peters (CBRE) 818-907-4616, Richard Ramirez (CBRE) 818-907-4639

Soledad Entertainment

27413 Tourney Road, Suite #120 28546 Constellation Road

1,609 5,734

Lease Lease

$2.55 SF/MO/FSG $0.90 SF/MO/NNN

Randy Cude (NAI Capital) 661-705-3553

Richard Ramirez (CBRE) 818-907-4639, Craig Peters (CBRE) 818-907-4616

JANUARY 2017

SANTA CLARITA VALLEY BUSINESS JOURNAL

REAL ESTATE SECTION – Commercial, Industrial, Retail & Land (cont.) Office/Commercial Buildings cont. Sq. Ft.

Sale/Lease

Price

23734 Valencia Boulevard

1,523 - 1,860

Lease

$1.95 SF/MO/FSG + J

23838 Valencia Boulevard

1,110 - 2,674

Lease

$2.25 SF/MO/NNN

25078 Peachland Avenue

1,000

Lease

$1.95 SF/MO/MG + E + J

23502- 23504 Lyons Avenue

692 - 5,710

Lease

$1.55 SF/MO/FSG + J

23542- 23560 Lyons Avenue

450 - 4,000

Lease

$1.10 SF/MO/NNN

1,655

Lease

$2.45 SF/MO/FSG + J

Valencia Financial Center Atrium Medical Building Peachland Medical Arts

Lyons Plaza Plaza Posada

28097 Smyth Drive

Cameron Gray (NAI Capital) 661-705-3569

26491 Summit Circle

2,397

Sale/Lease $742,000; $1.75 SF/MO/NNN

Summit Circle

24303 Walnut Street

200 - 770

Lease

$2.00 SF/MO/MG

Tim Crissman (Re/Max-Crissman Commercial Services) 661-295-9300

27955 Smyth Drive

28452 Constellation Road 26340 Diamond Place

Sq. Ft.

Sale/Lease

3,180 2,000 - 7,000

Lease Lease

24820 Avenue Tibbitts

13,045

Lease

28368 Constellation Road, Bldg C, Unit #360 4,017 26074 Avenue Hall; Unit #20 3,082 Unit #15 6,164 Unit #1 7,444 28079 Avenue Stanford 25,130 25570 Rye Canyon Road, Unit K 2,500 28650 Braxton Avenue 52,260 26943 - 26951 Reuther Avenue, Unit A 2,812 Unit C 1,535

Sale Lease Lease Lease Lease Lease Lease Lease Lease

1,500

Lease

$1.65 SF/MO/FSG

25158 Avenue Stanford 28486 Westinghouse Place Unit #120 28334 Industry Drive

603 - 1,340

Lease

$2.10 SF/MO/FSG

Matt Dierckman (CBRE) 818-502-6752

44,548 6,255 35,310

Sale Sale Lease

Randy Cude (NAI Capital) 661-705-3553

25060 Avenue Tibbitts

Office/ Medical Buildings

Craig Peters (CBRE) 818-907-4616

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

$205.00 SF/$825,000 $0.95 SF/MO/Gross $0.95 SF/MO/Gross $0.95 SF/MO/Gross $0.70 SF.MO/NNN $1.10 SF/MO/Gross $0.65 SF/MO/NNN $0.95 SF/MO/Gross $0.95 SF/MO/Gross

John Erickson (Colliers Int.) 661-253-5202, Chris Erickson (Colliers Int.) 661-253-5207

$1.90- $2.00 SF/MO/FSG

Rebel Professional

$0.75 SF/MO/NNN

Tim Crissman (Re/Max-Crissman Commercial Services) 661-295-9300

Lease

Rebel Suites

Price $0.85 SF/MO/NNN $1.15 SF/MO/NNN

Yair Haimoff (NAI Capital) 818-203-5429

800 - 850

25050 Avenue Kearny

19042 Soledad Canyon Road

Industrial Buildings cont.

24971 Avenue Stanford

21,147 20,415

Sale Sale

$132.00 SF/$5,880,000 $209.00 SF/$1,307,000 $0.59 SF/MO/NNN $140.00 SF/$2,950,000 $135.00 SF/$2,800,000

Mark Sokolowski (NDKF) 310-491-2075, 818-497-8815, Sean O’Leary (NDKF) 310-491-2010

Cody Chiarella (CBRE) 818-502-6730, Troy Pollet (CBRE) 818-907-4620

24832 Avenue Rockefeller

22777 Lyons Avenue

Craig Peters (CBRE) 818-907-4616, Sam Glendon (CBRE) 818-502-6745

150 - 1700

Lease

$0.11- $2.33 SF/MO/MG

The Lyons Building Andrew Ghassemi (NAI Capital) 661-705-3039, Yair Haimoff (NAI Capital) 818- 203-5429, Randy Cude (NAI Capital) 661-705-3553

24355 Lyons Avenue

1,200 - 5,200

Lease

$2.25 SF/MO/NNN

23929 McBean Parkway

1,252 - 11,149

Lease

$2.75 - $3.65 SF/MO/NNN

Lyons Professional Building

Henry Mayo Hospital Campus Randy Cude (NAI Capital) 661-705-3553

25050 Peachland Avenue

800 - 4,000

25159 Avenue Stanford

$2.20 SF/MO/NNN

79,701

Sale Sale

$159.00 SF $115.00 SF/$9,200,000

Todd Lorber (NAI Capital) 818-933-2376

26557 Ruether Avenue 27955 Smyth Drive, Suite #107

4,800 850

Lease Lease

$.90 SF/MO/MG $1.85 SF/MO/FSG

Randy Cude (NAI Capital) 661-705-3553

27772 Avenue Scott

Lease

16,897

22,565

Lease

$0.80 SF/MO/NNN

Yair Haimoff (NAI Capital) 818-203-5429, Randy Cude (NAI Capital) 661-705-3553

24955 Avenue Kearny

69,219

28210 N. Avenue Stanford 28903 Avenue Paine 25161 Rye Canyon Loop; Building #61

116,143 146,000 23,292

Craig Peters (CBRE) 818-907-4616, Doug Sonderergger (CBRE) 818-907-4607

Mann Biomedical Park Craig Peters (CBRE) 818-907-4616, Doug Sonderegger (CBRE) 818-907-4607

Land (Commercial, Industrial & Retail) Acres

Sale

25371 Rye Canyon

81,190

SWC Golden Valley Rd./Centre Pt. Pkwy.

Sale

Plaza Posada Medical Center Matt Sreden (NAI Capital) 818-742-1660, Cameron Gray (NAI Capital) 661-705- 3569

28338 Valencia Boulevard

1,110 - 2,674

Copper Ranch Plaza

2,171-7,561

Lease

$2.25 SF/MO/NNN

Atrium Medical Building Cameron Gray (NAI Capital) 661-705-3569

1.5

Sale/Lease $405.00 SF; $3.25 SF/MO/NNN

Price $35.20 SF/$2,300,000

Nigel Stout (JLL) 818-531-9685

23600 Sierra Highway 15112 Sierra Highway 23658 Sierra Highway Placerita Canyon Sierra Highway

10 149 6 10 30,000

Sale Sale Sale Sale Sale

$14.35 SF/$6,250,000 $0.61 SF/$3,900,000 $18.00 SF/$4,700,000 $57.00 SF/$25,000,000+D225 $23.00 SF/$700,000

Randy Cude (NAI Capital) 661-705-3553

SWC Copperhill Drive & Rio Norte

8.65

149 15 38 10,743 149 26,179- 65,775 1.19 1.9 2.29 2.67 3.86 4.96 6.15

Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale

Sale/Lease

25014 Anza Drive

11,352

Lease

$21.00 SF/$1,100,000 $23.00 SF/$1,900,000 $21.00 SF/$2,100,000 $21.00 SF/$2,500,000 $21.00 SF/$3,500,000 $21.00 SF/$4,500,000 $21.00 SF/$5,600,000

Price $0.75 SF/MO/NNN

Lease Lease Lease Lease Lease

$1.75 SF/MO/NNN $1.49 SF/MO/NNN $1.49 SF/MO/NNN $1.57 - $1.85 SF/MO/NNN $1.49 SF/MO/NNN

Yair Haimoff (NAI Capital) 818-203-5429

Sale

$216.00 SF/$1,050,000

Michael Corbin (DAUM Commercial Services) 661-670-2004, Kevin Tamura (DAUM Commercial) 818-449-1631

28462 Constellation Road 28486 Constellation Road

3,584 7,513

Lease

$1.05 SF/MO/MG

25110 Rye Canyon Canyon Loop

8,384

Sublease

$0.61 SF/MO/NNN

28939 N. Avenue Williams

58,395

Sublease

$0.79 SF/MO/IG

20,866 50,261

Lease Lease

Mann Biomedical Park Tim Crissman (Re/Max-Crissman Commercial Services) 661-295-9300

$0.66 SF/MO/NNN $0.62 SF/MO/NNN+A327

Craig Peters (CBRE) 818-907-4616, Doug Sonderegger (CBRE) 818-907-4607

$0.60 SF/$3,900,000 $3.52 SF/$2,300,000 $0.37 SF/$629,000 $55.75 SF/$599,000 $.60 SF/$3,900,000 $16.00 SF/$1,100,000

Richard Ramirez (CBRE) 818-907-4639

4,857

2,994

Bernards Centre Point Park

27460 Avenue Scott Unit #D 24700 Avenue Rockefeller

Sq. Ft.

28348 Constellation Road

26374 Ruether Avenue

$30.00 SF/$2,430,000 $30.00 SF/$4,848,000

Industrial Buildings

4,598 - 5,588 1,360 3,032 - 4,865 990 1,833 - 4,865

TBD

Sale Sale

Kevin Tamura (Daum Commercial) 661-670 -2001, Ron Berndt (Daum Commercial) 661-670-2000

20655 Soledad Canyon Road, Unit #41 Unit #17 Unit # 24 Unit #42 Unit # 25

Sale

Bill Pentz (DAUM Commerical R/E) 818-449-1625 and Kevin Tamura (DAUM Commercial R/E) 818-449-1631

$22.00 SF/$8,500,000

Yair Haimoff (NAI Capital) 818-742-1659

SWC Soledad Canyon Rd/Golden Valley Rd Valley Business Center Valley Business Center Valley Business Center Valley Business Center Valley Business Center Valley Business Center

Sale/Lease $125 SF; $0.58 SF/MO/NNN Sale $142 SF + 1.8 ac. Land Lease $0.60 SF/MO/NNN

Sale

John Z. Cserkuti (NAI Capital) 661-705-3551

15112 Placertia Canyon Bouquet Canyon/Vasquez Canyon 14825 Sierra Highway 24605 Railroad Avenue 15112 Sierra Highway 21145 Centre Pointe Parkway

$0.63 SF/MO/NNN

Valencia Gateway Business Park Matt Sreden (NAI Capital) 818-742-1660, Yair Haimoff (NAI Capital) 818- 203-5429

West Creek

NEC Bouquet Canyon Road & Plum Canyon Road 1.86 Bouquet Canyon/Madrid Road 3.71

Lease

Rexford Industrial Business Park Craig Peters (CBRE) 818- 907-4616, Robert Valenziano (CBRE) 818- 907-4663

Sale/Lease $807,000/$0.99 SF/MO/NNN Sale $199.00 SF/$1,500,000

21515 Centre Pointe Parkway

16,773

Sale

$215.00 SF/$3,606,000

Chris Jackson (NAI Capital) 818-933-2368,Todd Lorber 818-933- 2376, Matt Ehrlich 818-933- 2364

27756 Avenue Hopkins 28348 Constellation Road

21,884 4,857

Lease Sale

$0.64 SF/M0/NNN $216.00 SF/$1,100,000

Kevin Tamura (DAUM Commercial), Ron Berndt (DAUM Commercial) 818-333-2207

28251 & 28255 Kelly Johnson Parkway

26,318

Lease

$0.85 SF/MO/NNN

Craig Peters (CBRE) 818-907-4616, Richard Ramirez (CBRE) 818-907-4639

Future Industrial Projects

Sq. Ft.

Sale/Lease

VCC; West of I-5/NE SR 126 Gateway V 60,923, 88,752, 105,407 Lease IAC Commerce Center (Phase 1) 93,600, 116,740, 187,880 Lease Sierra Highway/Newhall Avenue/East/SR14 Freeway Needham Ranch (Phase 1) 16,000 - 223,530 Sale /Lease

Price/Occupancy TBD;1Q 2017 TBD; 1Q 2017 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 Avalon Business Center

44,162 20,499, 23,668

Lease Lease

$0.72 SF/MO/NNN $0.74 SF/MO/NNN

James Ebanks (Realty Advisory Group Inc.) 661-702-8880 x 12, Lauren Ebanks (Realty Advisory Group Inc.) 661-702-8882 x 18

28528 Industry Drive

46,778

Sale

Gateway Industrial

$142.50 SF/$6,665,865

Doug Sonderegger (CBRE) 818-907-4607, Craig Peters (CBRE) 818-907-4616

Future Office Projects

Sq. Ft.

Sale/Lease

Price

-None- The Real Estate Section of the SCVBJ is the most comprehensive database of Commercial, Industrial, Retail and Land Listings in the SCV. Note: Parties interested in properties should contact listing broker(s) or agent(s) for more information. To list here:

James E. Brown, Manager Business Attraction, SCVEDC, 661-288-4413, JimBrown@scvedc.org

SANTA CLARITA VALLEY BUSINESS JOURNAL

JANUARY 2017

REAL ESTATE SECTION – Residential 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 November Sales

Nov ‘16

545,000 340,000 205 89 95 494

Oct ‘16

Nov ’15

Find a better place... You deserve better

548,000 520,000 327,000 330,000 203 154 95 86 80 93 576 502

Source: Santa Clarita Valley Economic Development Corporation.

Acton New Listings. . . . . . . . . . . . . . . . 8 Total Active Listings . . . . . . . . . 46 New Escrows Closed. . . . . . . . . . 7 Median Sale Price. . . . . . $630,000

Newhall New Listings. . . . . . . . . . . . . . . 19 Total Active Listings . . . . . . . . . 44 New Escrows Closed. . . . . . . . . 26 Median Sale Price. . . . . . $385,000

Agua Dulce New Listings. . . . . . . . . . . . . . . . 5 Total Active Listings . . . . . . . . . 22 New Escrows Closed. . . . . . . . . . .3 Median Sale Price. . . . . . $569,000

Saugus New Listings. . . . . . . . . . . . . . . 32 Total Active Listings . . . . . . . . . 80 New Escrows Closed. . . . . . . . . 62 Median Sale Price. . . . . . $494,800

Canyon Country New Listings. . . . . . . . . . . . . . . 59 Total Active Listings . . . . . . . . 109 New Escrows Closed. . . . . . . . . 65 Median Sale Price. . . . . . $430,000

Stevenson Ranch New Listings. . . . . . . . . . . . . . . 12 Total Active Listings . . . . . . . . . 28 New Escrows Closed. . . . . . . . . 13 Median Sale Price. . . . . . $699,000

Castaic New Listings. . . . . . . . . . . . . . . 19 Total Active Listings . . . . . . . . . 38 New Escrows Closed. . . . . . . . . 16 Median Sale Price. . . . . . $545,000

Valencia New Listings. . . . . . . . . . . . . . . 55 Total Active Listings . . . . . . . . 119 New Escrows Closed. . . . . . . . 102 Median Sale Price. . . . . . $520,000

Kevin Fenenbock 661 253 5204 kevin.fenenbock@colliers.com DRE # 01165115

www.northlaofficespace.com

Fitness & &

Health

2017

Health Fitness 2017

magazine

TH HEAL S TIP E INSID

Deadline:

Wednesday, January 18th

Publishes:

New Year,

Saturday, January 28th

New You Call to advertise TODAY: (661) 259-1234 Email: advertising@signalscv.com www.signalscv.com

Source: Southland Regional Association of Realtors. Nov. 1 - 30, 2016

Canyon Country · Newhall · Saugus · Valencia · Stevenson Ranch · Castaic · Agua Dulce

Santa Clarita Valley Business Journal Santa Clarita’s Only Business Publication

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