SCV Business Journal June 2016 by Signal

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 2

june 2016

Special Report Stories Inside this Edition New Frontier: It’s a new frontier via the nation’s biggest cash, and still largely underground, industry. Regulation: Q&A with Lori Ajax, appointed as California’s first chief of the state’s Bureau of Medical Marijuana. Banking: Banks are stuck in the middle whereby marijuana is illegal in the eyes of the federal government but legal in many states. How local banks and the state’s tax board deal with the conflict. Grow Houses: The upside and the downside in L.A. County when commercial marijuana growers want to lease industrial warehouse space to serve as grow houses. Revenue: A brief look at how large the industry is estimated to be from a revenue standpoint. DEA: The Drug Enforcement Administration is looking at whether to reclassify marijuana. Hemp: Not all marijuana crops are “bad” – hemp is a product that had been outlawed by the state years ago, but it’s now legal and being used for cosmetics to clothing. Ballot: Brief outline of the Adult Use of Marijuana Act. If there are sufficient qualified registered voters who signed the initiative, recreational use of marijuana may become legal in November’s election.

SPECIAL REPORT:

Marijuana Industry Page 5

■ iStock image

Ground Breaks on Valley’s Master- Two Grocery-Anchored Retail Planned Industrial Project Centers Sell Within a Month

■ From left to right: Jean Rho, Nate Munson, Craig Smith, Matt Haydis, all of AEW Capital Management, Scott Sheridan, and Bob Ebbert, of Sheridan Ebbert Real Estate Development break ground at the forthcoming Gateway 5 industrial center in Valencia on Tuesday. Photo by Katharine Lotze.

■ Vons anchors the Bouquet Center in Saugus. It was the second retail center sold within a month. Courtesy photo

By SCVBJ Staff

By Jana Adkins

Ground broke on Santa Clarita Valley’s newest industrial and office development project, long referred to as Gateway V, by Los Angeles-based AEW Capital Management and Sheridan Ebbert Development of

Sylmar on a 13-acre site in Valencia in May. The new ownership group, MCA Gateway V LLC, purchased the four lots from Gateway V LLC in April of this year. The development is part of the largest master-planned industrial project and center See GROUND, page 6

SCVBJ Editor

oth the Bouquet Center in Saugus, anchored by Vons grocery, and the Stevenson Ranch Plaza anchored by Ralphs were sold by the Hanley Investment Group within the space of one month. While terms of the deal on the Bouquet Center were not disclosed, ROIC - Retail Opportunity Investments Corp. – purchased the center in a 1031 exchange. The investment group pursues stabilized groceryanchored shopping centers and also handles their own rentals. Bold, dark blue lease signs went up at the shopping center almost as soon as escrow closed.

The Stevenson Ranch Plaza sold for $72.5 million. Ed Hanley and Kevin Fryman of Hanley Investment Group Real Estate Advisors represented both the buyer and the seller, a Los Angeles-based private investor, in the Stevenson Ranch transaction. It is 97 percent occupied and was purchased by a self-managed Real Estate Investment Trust, InvenTrust Properties Corp. The Bouquet Center is 95 percent occupied and was completely renovated in 2007 at a cost of $7 million. It was built in 1985. The Stevenson Ranch Plaza, sitting on 19 acres, was built in 1997. “Both centers were well-performing, grocery-anchored centers in the Los Angeles See GROCERY, page 9

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SANTA CLARITA VALLEY BUSINESS JOURNAL

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 2 Cover SPECIAL REPORT: Marijuana Industry Ground Breaks on Valley’s Master-Planned Industrial Project Two Grocery-Anchored Retail Centers Sell Within a Month

june 2016

Editorial SCVBJ Editor

Jana Adkins jana@signalscv.com

Features

661-287-5599

Californians’ Attitudes Toward Marijuana Legalization Grow. . . . . . . . . . . . . . . . . . . . . . 5

Advertising

New Agency Created to Regulate California’s Marijuana Industry . . . . . . . . 6

661-287-5564

With No Clear Sign Posts to Guide Them, Banks Still Wary of Marijuana Trade. . . . . . 7

Major and National Accounts -

Commercial Grow Houses Pay AboveMarket Lease Rates. . . . . . . . . . . . . . . . . . 8

Marketing Director

Maureen Daniels

DEA Promises to Review Marijuana Drug Classification. . . . . . . . . . . . . . . . . . 9

maureen@signalscv.com

Hemp on Hold Despite Industrial Applications. . . . . . . . . . . . . . . . . . . . . . . . . . 10

661-287-5566

Cannabis Returns Could Top the Earnings of Three Industries Combined . . . . . . . . . . . 11

Multi-Media Account Executives

Marijuana Policy in the United States. . . 13

Monica Jaffe

Adult Use of Marijuana Initiative May Make November Ballot. . . . . . . . . . . . . . . 13

Darmon McGruder Toni Sims

MakerSpace Innovation Movement Arrives at College Campus . . . . . . . . . . . 14

Dawn Begley

Creekside Place Retail Center Sold for $9.65 Million . . . . . . . . . . . . . . . . . . . . . . 14

Administrative Assistant

Security Intelligence Experts Join Board. . . . 15

Jennifer St. Clair

Top Commercial Brokers Recognized . . . . . 15 H.E.R.O.S.. . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Space Shuttle Tank . . . . . . . . . . . . . . . . . 17

Art/Production

Grand Opening Fit for the Military. . . . . . . 18

■ All adults over 21 in Colorado are allowed to possess an ounce of marijuana, but retail pot shops can’t sell more than a quarter ounce in one day to people without Colorado IDs. AP Photo.

Bypass to Hospital Emergency Room for Non-Life Threatening Visits. . . . . . . . . . 19

From the Editor

Appointments . . . . . . . . . . . . . . . . . . . . . 19

The Weed Industry is Growing

Drum maker legend Remo Belli dies. . . . 20

In this edition we take a look at the business side of the marijuana industry – and yes, it is rapidly becoming a bona fide industry. We speak with the bankers and the commercial brokers who are routinely contacted by people in the business. We also speak with the state’s new medical marijuana czar, Lori Ajax, tapped to head up the state’s new Medical Marijuana Bureau. Admittedly, we don’t want our kids consuming it and we want law enforcement to continue its efforts to keep cannabis off school campuses, as well as block access to cartels illegally trading their drug wares. But, despite California being the first state in the nation to legalize medical marijuana in 1996, it has never set up the infrastructure to regulate, license, track and fully tax the

The Cheesecake Factory Selects Santa Clarita For Newest Restaurant . . . . . . . . 21 Newhall Land folded into newly formed FivePoint group. . . . . . . . . . . . . . . . . . . . 21

SCV Business Services Column: Real Clear Business Advice. . . . . . . 23 Column: Five Things You Need to Know about Business in Crisis . . . . . . . . . . . . . . . . . 23 The List – Restaurants . . . . . . . . . . . . . 24 & 25 VIA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 SCVEDC. . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Business Data Central Commercial Real Estate. . . . . . . . . . . . . . . . . 28

Deborah Runions industry. Of course there is also the conflict between marijuana being legal in 26 states now, and yet still deemed illegal by the federal government making for a contradictory environment in which to regulate. And given the rising acceptance of cannabis according to the polls, the infrastructure being set by the state now is likely also in anticipation that California voters may pass recreational use initiative this November. And if that occurs, experts are projecting a multi-billion industry on the horizon to tap into.

Daniel Watson Katharine Lotze Executive Staff Publisher

Charles F. Champion II cchampion@signalscv.com 661-287-5578

Ethel Nakutin Jana Adkins SCVBJ Editor jana@signalscv.com

Index of Products and Services

■ Photo by Jana Adkins.

Photographers

Assistant to the Publisher

Residential Real Estate. . . . . . . . . . . . . . . . . . 30

Brain Balance. . . . . . . . . . . . . . . . . . . . 2 Castaic Lake Water Agency. . . . . . . . . 4 City of Santa Clarita . . . . . . . . . . . . . . 4 Colliers International. . . . . . . . . . . . . 31 Corporate Strategies. . . . . . . . . . . . . . . 4 Exclusive Service Directory Group. . . . 24 JD Systems. . . . . . . . . . . . . . . . . . . . . . 2 Kadima Security. . . . . . . . . . . . . . . . . . . . 7 LBW Insurance Financial Services. . . . . 9 Liberty Tax . . . . . . . . . . . . . . . . . . . . . 8

Graphic Design Supervisor

Mission Valley Bank . . . . . . . . . . . . . 12 Poole & Schaffery . . . . . . . . . . . . . . . 16 SCVEDC: Cal Nauls . . . . . . . . . . . . 11 SCVEDC: Philip M. Hart. . . . . . . . 13 SCVEDC: Michael MacDonald. . . . 14 SCVEDC: David Rendall. . . . . . . . . 15 SCVEDC . . . . . . . . . . . . . . . . . . . . . 17 SCVEDC Power Brokers. . . . . . . . . . 32 SCV Payroll. . . . . . . . . . . . . . . . . . . . . 2 Valencia Acura. . . . . . . . . . . . . . . . . . 10

Santa Clarita Valley Business Journal (a Signal publication), © 2015, is published monthly by the Santa Clarita Valley Signal newspaper, a Morris Multimedia company, 24000 Creekside Rd., Santa Clarita, Ca. 91355. The SCV Business Journal is intended to provide business executives with a cross-section of industry news and information, trends and statistics that impact our growing community. Information gathered in the pages of the SCV Business Journal has been collected from what is considered reliable sources, and is believed to be accurate, but cannot be guaranteed. Articles may not be reprinted without publisher’s written permission. For reprint requests, please call 661-259-1234. POSTMASTER: Send address change to SCV Business Journal, P.O. Box 801870, Santa Clarita, Ca. 91380-1870.

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SANTA CLARITA VALLEY BUSINESS JOURNAL

SPECIAL REPORT

Californians’ Attitudes More Favorable Toward Marijuana Legalization By Jana Adkins SCVBJ Editor

arijuana. It’s the new frontier and companies are springing up quicker than the state can track them. Trade unions are beginning to organize workers, and celebrities are jumping into the burgeoning industry business through investments or startups. Whoopi Goldberg announced in March she was co-founding a medicinal marijuana business called Whoopi & Maya with products directed at women. Medical marijuana delivery services are becoming the Uber and Lyft of the ridesharing programs. In addition, although medical marijuana dispensaries are illegal in Santa Clarita, on the morning this story was written 17 deliveries were being made to locations throughout the city as were tracked on Weedmaps.com. And despite the efforts of Los Angeles City attorney Mike Feuer to stop delivery services, some doubt he’ll be successful, saying the city can’t even get its dispensaries under control. “The veil of local governments being able to control what’s taking place in their community is thin,” said former State Senator George C. Runner and now member of the state’s tax board. Legalizing marijuana for recreational use may become reality in California – one which might erase the boundary between cannabis use for medicinal purposes and casual users. It’s somewhat the modern day equivalent to prohibition of alcohol in the 1920s and 30s. That didn’t prove successful either. “This is much more complicated than prohibition was,” Runner said. “The federal government says it’s illegal and states are saying its legal. Marijuana is in a gray area. If something’s illegal, you’ll always have someone selling it illegally.”

The veil of local governments being able to control what’s taking place in their community is thin.”

– George Runner, former California State Senator and member of the State Board of Equalization

But the weed industry may come out of the shadows and into the legal framework once the state’s new rules for medical marijuana take effect, and if voters approve it for recreational use.

Attitudes A variety of polls show increasing reception by voters to legalizing marijuana for recreational use, and if polls are any indicator, the initiative to put those polls to the test may land on California’s Nov. 8 election ballot. Nationally, Gallup’s poll points to a 46-year high in tracking attitudes toward marijuana, with 58 percent of respondents favoring legalized marijuana. And it’s not just the young who are in favor. Surprisingly, Gallup found that Americans who are aged 65 through 79 – born between 1936 and 1950 – are more supportive of making marijuana legal in 2016. With Louisiana just having legalized medical marijuana, cannabis is now legal in 26 of the 50 U.S. states – despite the federal government’s ruling that it is still an illegal drug. Pennsylvania legalized a medical marijuana program in April. Now Californians are poised to vote on the issue of recreational use if at least 365,000 of the 600,000 signatures collected – well ahead of the July 5 deadline – are verified. And the polls show California residents are largely in favor of passing the initiative. U.S. Rep. Dana Rohrabacher, a California Republican, spoke in favor of the Adult Use of Marijuana initiative in early May, invoking the words former President Ronald Reagan famously used to call for the dismantling of the Berlin Wall. “The walls of cannabis production and tyranny are coming down,” said Rohrabacher, who worked in the Reagan White House. “Join us in tearing down this wall.”

■ Owner Bob Leeds inspects small “clone” marijuana plants growing under lights at Sea of Green Farms, a recreational pot grower and processor in Seattle. A ballot proposal before Ohio voters this fall would be the first in the Midwest to take marijuana use and sales from illegal to legal for both personal and medical use in a single vote. AP Photo.

Demographics Today, 55 percent of likely voters think that marijuana should be legal, according to The Public Policy Institute of California. Support has increased 5 percent since 2010, the last time a similar initiative was on the ballot. And, for the first time, a majority of Californians age 55 and older think it should be legalized – an increase of 10 points since 2010. College graduates are more likely to support the initiative (60%), compared to those with some college (55%), according to the nonpartisan research team. When it comes to the sexes, men are still more likely to be in favor – 59 percent of men vs. 47 percent of women. The institute also reports that support for legalization is much higher among Democrats (63%) and independents (57%), but even Republican support for legalization has increased by 10 points since 2010 (44%). If polls are any indicator, legalizing casual use of marijuana seems to be gaining steam. If voters don’t approve it, can the momentum be stopped with so many states coming on board? Even the U.S. House of Representatives voted in May to approve the access to medical cannabis therapy for veterans receiving their healthcare through the Veterans Administration.

and older would be allowed to buy an ounce of marijuana and marijuana-infused produces (edibles). But it also makes it easier for police to crack down on illicit sales than it has been in two decades since the state first legalized medical marijuana. Smoking weed would remain off-limits in places where tobacco use already is prohibited. California’s ballot initiative also reportedly puts in place the strictest product quality and tracking system in the nation, with separate licenses required for growers, transporters and distributors. The efforts, supporters believe, would help to reduce the illicit market by moving an unregulated and multi-billiondollar industry out of the shadows and into a regulated mainstream. The state’s new regulatory framework is effective 2017. “Given the complexity of California’s market, achieving the people’s will and responsibly regulating marijuana will be a process that unfolds over many years, requiring a sustained attention to implementation,” Newsom said when the results of the Blue Ribbon Commission were released. ■ Lisa Leff and The Associated Press also contributed to this story.

Momentum California was the first state to legalize medical marijuana in 1996, but it is the last state on the west coast to approve it for recreational use. Recreational use of marijuana is now legal in Alaska, Washington and Oregon. A California Blue Ribbon commission set up in 2015 made 58 recommendations to regulate medical marijuana and essentially create a compatible system for recreational use. The state’s new Bureau of Medical Marijuana was launched and is tasked with building the infrastructure. Of the more than 52 bills pending in the state legislature, 26 of them relate directly to the marijuana trade, according to the Washington D.C.-based Marijuana Policy Project, which formed in 1995 to end prohibition against cannabis. And Gov. Jerry Brown recently signed legislation requiring that dispensaries and other marijuana-related businesses will have to obtain licenses from the state to operate. “You do not need to be pro-marijuana to be pro-legalization,” said California Lt. Governor Gavin Newsom, the father of four young children who hopes to be governor in 2018.

Out of the Shadows With California’s initiative, residents and visitors age 21

■ Customers buy products at the Harvest Medical Marijuana Dispensary in San Francisco for the annual 4/20 marijuana holiday. AP Photo.

SANTA CLARITA VALLEY BUSINESS JOURNAL

JUNE 2016

SPECIAL REPORT

New Agency Created to Regulate California’s Marijuana Industry By Paul Parcellin

SCVBJ: What components of the marijuana industry is the state now working to regulate?

Lori Ajax: The Medical Marijuana Regulation and Safety Act, enacted on Jan. 1, 2016, establishes a statutory framework for the regulation of medical cannabis. Under the new law, the Bureau of Medical Marijuana Regulation is required to issue licenses and develop regulations for distributors, dispensaries, and transporters. The California Department of Food and Agriculture is the agency responsible for licenses and regulations related to cultivation. It is also responsible for implementing the state’s track and trace program. The State Department of Public Health is the agency responsible for licenses and regulations related to manufacturers and testing laboratories.

SCVBJ Writer

edical marijuana has been legal in California for 20 years, and now there’s a new agency that will help oversee the industry that produces cannabis, one of the state’s leading cash crops. Lori Ajax was appointed chief of the Bureau of Medical Marijuana Regulation in February, and as head of the new state agency, she will set up California’s first system to license, regulate and tax the state’s burgeoning medical marijuana industry. For Ajax, the new job, which earns a $150,636 salary, follows the Sacramento-area Republican’s 21-year career with the Department of Alcohol and Beverage Control, where she rose through the ranks to chief deputy director in Jan. 2014. Both the bureau and Ajax’s position were created last October when Gov. Jerry Brown signed the Medical Marijuana Regulation and Safety Act into law. By some estimates, California accounts for half of the nation’s marijuana industry, and the new bureau, which is under the Dept. of Consumer Affairs, will likely have its work cut out for it.

Reining in the Industry The new bureau and regulations passed in October are intended to control an industry that has at times struggled to maintain legitimacy ever since the state legalized medical marijuana 20 years ago. Although the state permits the sale and use of medical marijuana, the federal government still prohibits it. The state continues to classify the recreational use of marijuana as illegal. According to the new state regulations, the agency can be transformed into a Bureau of Marijuana Control, regulating non-medical marijuana as well. If the state approves recreational marijuana on the November ballot, the number of marijuana businesses is likely to increase, as will Ajax’s responsibilities.

Preparing to Issue Licenses The state has provided $10 million to the new agency, and Ajax’s mandate is to set up a 25-person bureau that can begin issuing licenses on Jan. 1, 2018. Between now and then, the agency is tasked with creating 17 different licenses that must be in place when regulations are slated to begin. Amid the race to get all of the pieces of the regulatory agency in place, Ajax took time out to answer some questions we posed about the new bureau and the outlook for the marijuana industry in California:

GROUND

Continued from page 1 for business technology and industry in Los Angeles County, according to commercial real estate brokerage firm CBRE. Brokers Craig Peters and Doug Sonderegger represented both sides of this transaction. The site sits off the 126 Highway at Commerce Center Drive and Interstate 5. “We have almost no vacancies in our industrial space; this is a great new opportunity,” said Holly Schroeder, president and CEO of the SCV Economic Development Corp. (SCVEDC). “It is the first significant new industrial construction in L.A. County in almost a decade.” Peters and Sonderegger are now representing the three buildings that will be constructed at the site on behalf of the owners.

SCVBJ: Will new regulations be drafted with an eye toward accommodating recreational marijuana, assuming that it becomes legal? Ajax: Right now, the bureau is only charged with drafting regulations to implement the Medical Marijuana Regulation and Safety Act; and the work to be done between now and Jan. 1, 2018 will focus on medical marijuana. SCVBJ: If recreational use becomes legal, what differences, if any, would there be between regulations for medical vs. recreational marijuana? Ajax: It’s really too early to tell. If the voters of California pass an initiative to legalize the use of recreational marijuana, all related regulations will be based on the language of that initiative. SCVBJ: Will municipalities be able to regulate the amounts of marijuana that are cultivated and possessed for recreational use? Will communities have the right to opt out of allowing the legal use of recreational marijuana? Ajax: Again, we really don’t know what will happen in the future and this information is unknown at this time. The bureau will work with local jurisdictions and work to educate them on the Medical Marijuana Regulation and Safety Act. SCVBJ: What factors might be considered when the state begins evaluating candidates for recreational marijuana licenses? Ajax: The only statutory requirements for the state relate to the medicinal use of marijuana, so that is our focus now and we have a lot of work to do to be ready to accept applications by our target date of Jan. 1, 2018. SCVBJ: Will the state regulate marijuana’s strength, as it does alcohol, or its purity to ensure that it’s free from pesticides or other drugs being introduced today, such as Fentanyl? Ajax: The licensing authorities will be determining those

The buildings range in sizes of 105,047 square feet, 88,752 square feet and 60,923 square feet. Completion of the structures is expected to be in the first quarter 2017. “This is a big event. This is the first time we are breaking ground for the expansion of an industrial park since the recession,” Peters said. “In six to eight months, three buildings will be completed. These buildings are more than square footages – they are about attracting new companies and bringing in more jobs.” The three structures will be state-of-theart buildings: Class A industrial buildings with 28-foot minimum clear height, upgraded ESFR fire sprinklers, and great truck maneuverability, he said. They will also have 480/277 volt industrial power. The CBRE team previously sold two adjacent lots on nearly 12 acres last year to Logix Federal Credit Union, and an additional 5

■ Lori Ajax, Chief of the Bureau of Medical Marijuana Regulation. Courtesy photo.

details through the regulatory process. There are a lot of aspects when developing protocol for this, and this early in the regulations development process there is really nothing to report yet. SCVBJ: How will you go about drafting regulations, and when would they take effect? Ajax: In California, regulations must go through a specific process called the Administrative Procedures Act. We anticipate holding pre-regulatory meetings with stakeholders, conducting research, and consulting with experts, to assist with drafting our regulations. Once proposed regulations have been drafted, there will be a public comment period before the regulations are finally adopted. We anticipate our regulations being effective Jan. 1, 2018. SCVBJ: Do you anticipate any resistance from Washington D.C., over marijuana productions and distributions, which could bleed into other states where it’s not legal? Ajax: The bureau is focused on implementing its responsibilities under the Medical Marijuana Regulation and Safety Act. We can’t predict the future, but having comprehensive, clear and strong regulations should help prevent diversion to other states.■ ■

acre lot to Hancock Parkway Properties LLC. Logix plans to make Santa Clarita the base for its headquarters after its decades-long operations in Burbank. “Valencia Gateway V is a great example of L.A. County and the City of Santa Clarita working closely with private business – through the support of the SCVEDC – to expand industrial space and provide boost to the local economy,” said Rosalind Wayman, senior deputy for Supervisor Michael D. Antonovich. The Greater L.A. industrial market has seen record low inventory of industrial space as demand has only risen, which is expected to push rents up 6 percent by year-end, according to CBRE’s first-quarter research report. “MCA Gateway V is an expansion of the Valencia Commerce Center, one of the master-planned business parks originally designed by Newhall Land,” Schroeder said.

“Developers and brokers are our natural partners, and we look forward to working with them to bring quality companies and hundreds more jobs to the Santa Clarita Valley.” While CBRE also reported that the region is going to see some relief, as more than 3.8 million square feet are currently under construction, with the South Bay and San Gabriel Valley accounting for the majority of the total. However, none of that new development is in the L.A. or San Fernando Valley markets, making the Valencia development a choice option for some companies. “This area is in dire need of new industrial product,” Peters said in a statement. “These facilities will be state of the art and will fulfill the ever-increasing need for space by companies in our primary industry clusters of aerospace and defense, entertainment and ecommerce.” ■

JUNE 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

SPECIAL REPORT

With No Clear Sign Posts to Guide Them, Banks Still Wary of Marijuana Trade By Paul Parcellin SCVBJ Writer

t’s legal to sell medical marijuana in California, but finding a place to stash the stacks of money earned in the cannabis trade has been a persistent problem for the industry. While the state does not prohibit banks from doing business with the marijuana trade, the federal government still considers marijuana illegal, and because of that, many bankers are unwilling to bring marijuana businesses on board. For marijuana growers and distributors, being shut out of the banking system can be a hardship. It means you must run a cash-only business, and there are no safe, airtight bank vaults to store your money in. You can’t accept credit or debit card payments – card companies fear liability for money laundering charges – or open a checking account, and you may also be forced to pay bills and taxes in cash. Businesses that take in large quantities of cash have to keep it on site, or else transport it to another holding location, which creates a security risk. Banking that cash would eliminate the security risk from the pot dealer, but for a myriad of reasons bankers stay away from that kind of trade. “Every bank in California knows that when federal regulators come marching in to do their examinations, if they come across these types of clients, it’s an issue that the bank would, in essence, be indirectly ‘conspiring’ with these businesses to run their money through the bank,” said Frank Di Tomaso, executive chairman and CEO of the Bank of Santa Clarita. And so, the process of eliminating troublesome accounts begins as soon as a new customer files an application.

Screening Most banks screen out marijuana businesses through their usual vetting process for new commercial accounts. Spotting

businesses that are in the marijuana trade can be easy. Applicants may admit at the outset that they’re dealing in the cannabis trade, or they may make revealing statements during the interviewing process. But others might not admit they’re in the pot business, or they may alter their business name on the applications to hide what they’re doing. Usually, that doesn’t pass muster. “They (bank regulators) expect us to go out and do a site visit of the location of where their business is to make sure it is what they say it is,” says John Vescovo, Bank of Santa Clarita’s chief risk officer. Site visits, interviews with the clients and looking at their websites usually yield enough information to confirm the kind of business that’s being operated. To evade scrutiny, many pot dealers put their money in personal bank accounts. But if they routinely deposit large sums of cash, bankers will start taking a closer look at what they’re up to. Banks will sometimes run a ChexSystems background check on new customers, and if they find that the potential customer has been opening and closing a lot of accounts, that sends up a red flag. “We know that’s because the other banks for whatever reason don’t want to do business with them,” says Vescovo. Even if a bank takes all of the measures to screen out pot dealers, it’s likely that many personal accounts holding marijuana money go undetected for periods of time. But, some customers still get caught red-handed. “We’ve had people who’ve tried to deposit cash that smells like marijuana,” says Vescovo.

Missed tax dollars Adding to the complications from operating a cash-only enterprise, marijuana businesses must pay their taxes in cash, and that can mean that a lot of money must be handcarried to a Board of Equalization office. See BANKING, page 22

Louis Perry President, Kadima Security Services, Inc. Diplomate – American Board of Certification for Homeland Security Inspector – California State Athletic Commission Honorary Member – International Police Association Delegate – District 13 Stevenson Ranch Neighborhood Watch Chair – Stevenson Ranch

If you have seen this guy around town, you will know he’s doing something big. He wears many different kinds of hats. Just look at his affiliations! The amazing part of it all is that he does them all so well. Louis Perry is one of the most well connected men in the United States. Louis Perry is a fifty-five year old security expert. He has been married to Paulina Perry for twenty-five years. They both reside in Stevenson Ranch with their sons Justin Perry who is nineteen years old and Adam Perry who is fifteen years old. Justin attends college at College of the Canyons where coincidentally, Paulina attends as well. Adam is a sophomore at West Ranch High School. Living in Stevenson Ranch is a complete blessing for Louis and his family. After a long day of running his business, you can find Mr. Perry on the television inspecting a boxing fight between two rivaling boxers. He inspects many of the big boxing and UFC matches. Staying busy is a blessing and what drives his motivation. Louis loves to meet new people. If you happen to come across his bursting personality, you can bet that you’ll walk away with two business cards and a smile on your face. If you’re lucky, he’ll also give you a bound promotional book. Even though Louis’ business is not based in Santa Clarita, he prefers it that way. To name a few cities Kadima Security provides services, they serve Beverly Hills, Downtown Los Angeles, Sylmar, Hollywood, Inglewood, Compton, Bel Air, San Fernando Valley, Pico Rivera, Glendale, Santa Monica, Huntington Park, Norwalk, and Carson. Louis attributes his success to hard work, honesty, integrity, determination, and the relationship he has with his best friend, God. Louis Perry President Kadima Security Services, Inc. (213) 688-3019 lperry@kadimasecurity.com www.louisperry.net

■ A sign hangs over the door of a vacant building in which a credit union was going to be established to cater to the needs of the marijuana industry in Denver. Federal banking regulators have told banks how to accept marijuana money, but the U.S. Federal Reserve said it has no intention of allowing a new credit union designed just to serve marijuana businesses to be created because “its very existence is prohibited by federal law.” AP photo

SANTA CLARITA VALLEY BUSINESS JOURNAL

JUNE 2016

SPECIAL REPORT

Commercial Grow Houses Pay Above-Market Lease Rates By Jana Adkins

Desert Hot Springs

SCVBJ Editor

But, it’s the demand for commercial warehouse space that’s now growing. And based on changes made by one Southern California city, Desert Hot Springs may be poised to become the “Silicon Valley of cultivation.” Taking advantage of the growing movement to bring added tax dollars and jobs into their fold, Desert Hot Springs created a special medical marijuana cultivation ordinance which tacks on an annual use tax of $25 per square foot for the first 3,000 square feet of space, and then $10 per square foot for the remaining space. As a result, Pineapple Express, a Los Angeles-based cannabis industry consulting and technology/branding company, purchased several acres in Desert Hot Springs to use warehouses for the cultivation of marijuana. “The legal cannabis industry is a reality and the state’s new regulations finally initiate a framework for legal operations,” said Teresa Flynt, vice president of business development for Pineapple Express in a statement. Likewise, CalCann Holdings, a Costa Mesa-based cannabis firm, plans to build the state’s first large-scale marijuana greenhouse in Desert Hot Springs, anticipating the creation of 40 fulltime jobs and delivering $400,000 in annual revenue for the city after opening in 2018. They hope to receive a mega license under the state’s new

arijuana crops are moving out of hidden forest recesses and private homes and into the open. As the state’s largest cash crop gains acceptance from voters, growers are opening commercial-size grow houses in industrial warehouse spaces. But, it will be awhile before all crop growers come out of the closet, so to speak. Agriculturally speaking, cannabis isn’t even yet tracked by the state of California, which reports its agricultural exports amounted to $21.59 billion in value in 2014, accounting for 14.3 percent of the nation’s total agricultural exports. But, when new rules are implemented by the state’s new Bureau of Medical Marijuana, it will be. Medical marijuana use in the state has been approved since 1996, and the result of that continues to generate plenty of calls to commercial real estate brokers for retail space. “For the past five years there were a fair amount of calls for office buildings with retail space on the ground floor, with street exposure, from medicinal marijuana dispensaries,” said Kevin Fenenbock, senior vice president with Colliers International real estate firm.

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The group culls that data from three different sources, he said; it uses data from the state’s Natural Resources Agency, the state’s tax board – the Board of Equalization, and the U.S. Department of Justice. But, that number is the trade association’s best guess estimate, Allen said. The three agencies actually produce grow site numbers between 40,000 and 65,000. And each site employs on average 3.8 full time equivalents, in addition to two owner/operators, for a total of about 250,000 jobs – many of which are in otherwise impoverished – Ron Berndt, Senior Vice President, communities, he added. If Daum Commercial those numbers are anywhere accurate, commercial grow spaces might be in high demand but low in In addition, Manhattan Beach-based supply in urban areas. Ocean Grown Extracts is proposing to use licensing policy. “This project is the final piece in assembling the state’s first vertically integrated, seed-to-sale marijuana operation,” said Aaron Herzberg, a partner in the project, in a statement.

When they vacate the buildings, they smell so bad. It’s a very distinct smell; an odor that’s so hard to abate. They have to replace all the drywall and beams.”

an old, vacant 77,000 square foot prison in San Joaquin Valley for growing marijuana and producing cannabis oil.

Commercial grow houses According to trade associations which attempt to track the product, California is said to produce the most marijuana in the nation, making commercial grow houses a natural next step. On the flip side, however, municipalities such as the city of Santa Clarita have eschewed the industry. The city has a prohibition on the cultivation of marijuana and on marijuana grow facilities on all properties within the city limits. Ditto medical marijuana dispensaries. Prohibition or not, many landlords don’t welcome commercial growers any way, according to commercial real estate brokers. “Over the years we’ve had a lot of requests ever since medical marijuana became legal,” said John Erickson, senior vice president with Colliers International. “They’re (growers) problematic users; they create a lot of damage and have a lot of water lines that break.” Demand, however, is only going to grow if voters legalize recreational use come November’s election. The California Growers Association thinks there are somewhere around 50,000 grow sites in the state, said its Executive Director, Hezekiah Allen.

Above market rates “We get two to three calls a day; it’s been that way for a couple years now,” said Ron Berndt, senior vice president of Daum Commercial. “I’ve represented three deals in the past two years. But most landlords do not understand the legality of it and they won’t take them (the tenants).” Of those who do, they’re renting for more than market rates – 25 percent higher, Berndt said. A pot shop will pay $1.25 per square foot when it should only go for 85 cents, he said. Berndt once represented a landlord in Santa Clarita; however, the city doesn’t allow them so he shopped in other markets from the city of Los Angeles to Sun Valley and Chatsworth. The smallest space he’s leased is 3,000 square feet; the largest 6,000 square feet. Growers have to have air conditioning, which they pay for, but to fully air condition a warehouse requires at least 800 amps of power. Getting that kind of power takes the utility companies about six months to come in and install, he said. And even with higher rents, however, there is a downside to leasing space to a grower. “When they vacate the buildings, they smell so bad. It’s a very distinct smell; an odor that’s so hard to abate,” Berndt said. “They have to replace all the drywall and beams.” ■

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■ A trade association for marijuana growers, Emerald Growers Association, is supporting a measure by CA Assemblyman Jim Wood requiring medical pot growers to obtain permits and subject them to environmental inspections that will be heard before the Assembly Agriculture Committee. Above, Jamie Kerr, owner of the medical marijuana dispensary, “530 Collective” in Shasta City, and a member of the growers association. AP Photo

JUNE 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

SPECIAL REPORT

SCV Voices

DEA Promises to Review Tips for When Your Child Marijuana Drug Classification Just Doesn’t Want To By SCVBJ Staff

ong classified as a Schedule 1 drug, one which has “no medical use and a high potential abuse,” marijuana shares its status with drugs like heroin and is more strictly regulated than opioids prescribed legally to medically relieve pain by producing morphine-like effects. But, while the drug remains illegal on a federal level, the tide of public opinion has been shifting and medical scientists are claiming a government-sanctioned monopoly on the supply of cannabis for studies is stifling advancement of research. The Drug Enforcement Administration now plans to take a second look at that classification and determine whether the drug’s threat should be downgraded. But, researchers shouldn’t hold their breath. The agency promised that before in 2001 and 2006 without making a change. In a memo issued to lawmakers in April, the DEA said that it hopes to issue a decision in “the first half of 2016” whether to remove

the Schedule 1 drug classification under the Controlled Substances Act. The memo was issued jointly by the DEA, U.S. Department of Health and the Office of National Drug Control Policy. Under fire by researchers, those studying the drug for possible medicinal treatments say that under the harsh classification, they lack access to adequate supplies and varying strains of cannabis because the DEA only sanctions a marijuana garden at the University of Mississippi. The DEA has said it may consider registering additional growers. “These knowledge limitations exist because the U.S. government has made cannabis illegal on the basis of its having no medical value,” wrote Brookings Institution John Hudak in a piece titled “Fixing the Medical Marijuana Mess - A prescription for fixing a broken policy.” “By prohibiting it, the government has made it harder for researchers to investigate what its medical value might actually be. This is the vicious cycle of marijuana prohibition,” Hudak wrote. ■

■ Above, lab analyst Alexander McVey examines samples for potency, pesticide residue and more for the medical marijuana industry. AP Photo.

GROCERY

Continued from page 1 County market,” said Kevin Fryman, senior vice president of Hanley Investment Group. “The immediate areas in Santa Clarita where these properties were listed, affluence was a driving force.” Hanley Investment received Letters of Intent from multiple parties, he said. There had been a family-owned restaurant at the Bouquet Center which operated for close to 20 years, the Greenhouse Café. The center’s former owner cleaned up space to prepare it for lease. Fryman expects it will be leased up within a few months. The retail centers each have recognized name brand tenants such as CVS and Ross

Dress for Less, Chase, Citibank, Wendy’s, Baskin Robbins, Jersey Mike’s Sub, Little Caesars Pizza and Payless ShoeSource, LA Fitness, PetSmart, Stein Mart, David’s Bridal, Guitar Center, Yamato Restaurant, and a FedEx office. Hanley Investment’s also sold three other Santa Clarita retail centers within the past couple years. It sold the Stevenson Ranch Shopping Center on Hemingway Ave. last December, the Boot Barn Plaza on Sierra Highway in Canyon Country last summer, and Seco Canyon Village on Copper Hill Drive in August 2014. “There’s a lack of product for quality grocery-anchored centers within all of Southern California; more so specifically within the Los Angeles, Orange County and San Diego infill markets,” Fryman said. ■

By Rebecca J. Ivat Brain Balance

oes your child struggle with a lack of flexibility and resist trying new things? These tips for encouraging and motivating a child who “just doesn’t want to” may help! How can you get a child resistant to activities and new things to that point without a meltdown? • Keep Calm. No matter how cross you become, display a composed face and unruffled behavior toward your child. If you react angrily to your child’s resistance, you’re fueling that conduct, losing control of the situation and eroding feelings of self-worth. If necessary, take some time out in your own space to calm down before interacting further with your child. • Encourage Participation in New Activities. Some kids are just shy, but reluctance to go to social occasions or to participate in new extracurricular activities may be due to a fear of unfamiliar situations or from a feeling of just not fitting in. For children with disorders like sensory processing disorder or Aspergers syndrome, there may social or behavioral issues and resistance to try new things can arise out of inability to read body language or extreme auditory sensitivities. Talk things through with your child to find out the reasons for their resistance. Role play with your child to show the best ways of interacting with others at parties, or go together to watch

the sport or hobby club. • Motivational Strategies. For picky eaters and to cope with lack of motivation in children, it’s a good idea to customize your strategies for each child. Children with ADHD are often reluctant to undertake new experiences because they don’t see the point of them. Instead of giving a lecture on the nutritional value of zucchini, perhaps say that once the meal is finished you can all watch a favorite movie or play a board game. If that doesn’t work, go off to the den and start watching the movie or playing with the other kids. You’ll probably find that the meal is eaten up within minutes. • When It’s Time to Get Help. Some kids may exhibit extreme oppositional behavior, and if so, it’s time to reach out for professional assistance. Oppositional defiant disorder (ODD) is a condition where irritable and angry moods, defiant and argumentative behavior, and spiteful and vindictive actions are exhibited on a regular basis. If these behaviors are shown outside the home, have occurred for over six months, and are causing problems at school, it’s likely time for intervention. Kids with social and behavioral issues do prefer routine, and cope better with a structured environment. But life isn’t always predictable, and while it may be challenging at times, it’s wise to encourage your child through new experiences instead of supporting complete avoidance of them. ■

SANTA CLARITA VALLEY BUSINESS JOURNAL

JUNE 2016

SPECIAL REPORT

Hemp on Hold Despite Industrial Applications By Jana Adkins SCVBJ Editor

ot to be confused with the high effect marijuana can produce, hemp used for industrial purposes has only trace amounts of THC (tetrahydrocannabinol) – the main psychoactive element in medicinal or recreational marijuana. Banned for decades, producers have had to import the raw industrial product from China, Canada and Eastern Europe. Manufacturers have used the harvested plant stalks to make textiles, composites, rope, fabric

and paper, clothing and footwear, beauty products, nutritional and dietary supplements, and scores of products in almost every industry. It can even be used as a substitute for fiberglass in automobile parts. Even auto legend Henry Ford experimented with the production of a car whose body panels were made from hemp, and the vehicle ran on hemp-based fuel. California farmers could have been growing industrial hemp after the state legislature approved cultivation of mature stalks of the plant in the California Industrial Hemp Farming Act. Gov. Brown signed the bill

into law in Sept. 2013. But for the most part, that’s as far as the law got – a signature. “There’s a pretty huge range of products that can be produced from it – over 25,000 products,” said Eric Steenstra, executive director of The Hemp Industries Association. “But the California Attorney General (Kamala Harris) gave an opinion that it was only legal for university research, not commercial cultivation.” At the time California approved industrial hemp, Sen. Mark Leno, who shepherded the bill through the state legislature, said it had been a 10-year effort to get approval.

■ Burlap-type fabric made from hemp. iStock photo.

Leno felt it would help sustain family farms, calling it a $500 million industry at the time with the potential for 10 percent annual growth. Today, at least 28 states have laws in place related to industrial hemp, according to the National Conference of State Legislatures. Harris’s ruling came on the heels of federal action, however. President Obama signed the Agricultural Act of 2014, or the Farm Bill, which allowed for universities and state agricultural departments to begin cultivating industrial hemp for limited purposes. In an opinion issued June 2015, Harris said since the federal Farm Bill did not provide for the private sector to cultivate hemp, commercial production in California wouldn’t be legal for anything other than agricultural or academic research. But, even if federal law changes, it will take time and an investment to build the labor force and infrastructure, Steenstra said. “We were disappointed and frustrated with the attorney general’s ruling,” Steenstra said on behalf of the industry association. “Clearly other states have interpreted it differently; California left us behind based on a very narrow interpretation. We don’t believe it was the intent of the legislature to only limit hemp production to university research use.” ■

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■ Harvested hemp stalks. iStock photo. Acura_2016_Beauty_Shot_Bridge_SCVBJ.indd 1

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JUNE 2016

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SPECIAL REPORT

Cannabis Returns Could Top the Earnings of Three Industries Combined By Jana Adkins SCVBJ Editor

t’s like forecasting early gold reserves in the heady days of California’s Gold Rush era. Revenue estimates that will come from legalizing marijuana are growing almost like weed itself. In analyzing the ballot initiative to legalize recreational use of marijuana, California’s legislative analyst and finance director estimates that legalizing marijuana for casual use could net as much as $1 billion in new tax revenue for the state and local governments. That estimated revenue, however, dwarfs the amount calculated by the state’s tax board, the Board of Equalization, based on legal medical marijuana-related sales. The board reported $570 million in taxable income in 2014, amounting to $49.5 million in taxes owed to the state from sales generated by the 1,623 medical marijuana dispensaries that registered with the state and filed taxes in 2014. The problem, according to experts, is that of much of the industry is still underground due to conflict in federal and state laws. Hiding makes it nearly impossible for state and local municipalities to collect revenues. And then there are the illegal drug sales, which supporters say the ballot initiative would help to further eat away at illegally gained earnings. “The reality is, so much of it is underground it’s hard to find. Dispensaries have operated in a gray zone for so long that reporting is really fragmented,” said George Runner, member of the State Board of Equalization. “On top of it, federal law doesn’t allow businesses to have bank accounts, so it’s a very big problem in terms of auditing and audit trails.”

Federal ban The fact that marijuana is still illegal under federal law has made many business owners slow to register their businesses, Runner said. They’re afraid of potential self-incrimination The BOE office estimated that if sales of medical marijuana were in full compliance under current law, the state tax board would have collected $111.4 million in 2014. The lack of paper trail led state legislators, including Assemblyman Scott Wilk (R-Santa Clarita), to introduce a joint resolution (AJR 25) last year calling on the President and Congress of the United States to support legislation that will allow banks and credit unions to perform financial services for marijuana businesses. Asked if he could estimate the percentage of tax revenue the tax board is unable to capture, Runner said the industry was so fragmented in California that he was unable to even make a guess. “If you don’t know what the potential is, you don’t know what potential is missing,” he said. “Hopefully that all gets resolved to a great degree when the regulatory system is put in place.” The California Growers Association estimates there may be 40,000 independently owned businesses in total in the cannabis industry, with a few thousand of the businesses owning and operating multiple sites,

■ Marijuana for sale is kept in jars for customers to sample smells, at a recreational marijuana store, in Aurora, Colo. Colorado’s pot tourists are in line to be able to buy as much weed as residents, according to a bill moving through the state Legislature. The measure repeals Colorado’s unique-in-the-nation tiered purchasing system for marijuana. All adults over 21 in Colorado are allowed to possess an ounce of marijuana, but retail pot shops can’t sell more than a quarter ounce in one day to people without Colorado IDs. AP Photo.

said Hezekiah Allen, executive director for the association. Based in Sacramento, the group has 550 members in more than 45 counties. It compiled data from three sources, including the BOE, to arrive at that number. “Everything is our best guess and should not be reported as conclusive,” Allen said. “We did our best to put numbers to it, but look forward to being proven wrong once better data is available.”

Revenue Forecasts In February, ArcView Market Research released a report predicting that nationally the legal cannabis industry will grow to nearly $22 billion in total annual sales by 2020 – just some three-plus years away. That revenue figure would jump to $37 billion if the federal government legalized marijuana nationwide. The legal marijuana industry is expected to out-earn the U.S. Film industry, organic foods industry, and more than triple the revenues of the National Football League combined, the report concluded. The ArcView Market Research report has been produced by cannabis investor network, ArcView Group. Marijuana products sold for recreational purposes could out-sell medicinal marijuana as soon as 2018, according to the 2016 Marijuana Business Factbook, published by Marijuana Business Daily. It expects the total economic impact of the industry to reach $44 billion by 2020, up from $14 billion to $17.2 billion in cannabis sales that will be rung up this year.Whichever industry revenue total one references, for each dollar spent at retail, the Factbook estimates that an additional $3 of economic activity will occur in local communities See CASH page 22

SCVEDC recognizes the leadership shaping our local economy.

Cal Naulls Member Board of Directors

C AL NAULLS has been with Community

Bank for over 19 years. During that time he has enjoyed helping mid-sized businesses grow. With his guidance, owners have seen their profits increase, their cash flow improve and their markets expand. Cal currently manages their Commercial Business Center, which is devoted to maintaining a strong rapport with clients while handling their financing, depository and trust services. His clients have consistently praised him for his focus and dedication to seeing their projects through from start to finish. Cal has nearly three decades of banking experience, including stops at Foothill Independent Bank, Founders National Bank, City National Bank, and Security Pacific Bank. He received his bachelor’s degree in media management from California State Northridge, and a masters degree from University of Washington, Pacific Coast Banking School. In his free time, Mr. Naulls enjoys golfing, going to jazz concerts and traveling.

Regional leadership for a regional economy.

www.stillgolden.org

SANTA CLARITA VALLEY BUSINESS JOURNAL

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SPECIAL REPORT

Marijuana Policy in the United States

Source: Marijuana Project, March 2016

SCVEDC recognizes the leadership shaping our local economy.

Philip M. Hart Member Board of Directors

PHILIP HART joined Logix Federal Credit Union as the Vice President of LFCU Financial Services. He directed the daily operation and was responsible for developing and implementing the strategic direction of the company. He was appointed Chief Financial Officer of Logix Federal Credit Union in 1994, directing the financial report and budget functions along with being elected to the Board of Directors LFCU Financial Services, Inc. In 2001, Phil was appointed to the position of Executive Vice President and Chief Financial Officer and Strategist. In this capacity, he developed and implemented the strategic direction for Logix Federal Credit Union. In 2004, Phil was promoted to Chief Operating Officer with responsibilities in loan and retail management. Prior to joining Logix Federal Credit Union, Phil was VP, National Sales Manager, for GlenFed Brokerage, Inc., the financial services company for Glendale Federal Bank. Phil holds two Bachelor’s Degrees from San Francisco State University and a Master’s Degree in Finance from Golden Gate University. He is also a graduate of the Stanford Executive Program at the Stanford School of Business. Regional leadership for a regional economy.

Adult Use of Marijuana Initiative May Make November Ballot

n initiative to legalize marijuana for recreational use is awaiting verification of registered voter signatures before being placed on the November ballot. If the signatures pass muster, the Adult Use of Marijuana Act will go before voters for the second time this century. In 2010, voters narrowly defeated recreational use with 53.5 percent of California voters voting "No.”

marijuana-related offenses, handling the related criminal cases in the court system, and incarcerating and supervising certain marijuana offenders. Net additional state and local tax revenues potentially ranging from the high hundreds of millions of dollars to over $1 billion annually related to the production and sale of marijuana. See BALLOT, page 22

Verbiage on the official ballot reads:

“Legalizes marijuana and hemp under state law. Designates state agencies to license and regulate marijuana industry. Imposes state excise tax on retail sales of marijuana equal to 15% of sales price, and state cultivation taxes on marijuana of $9.25 per ounce of flowers and $2.75 per ounce of leaves. Exempts medical marijuana from some taxation. Establishes packaging, labeling, advertising, and marketing standards and restrictions for marijuana products. Allows local regulation and taxation of marijuana. Prohibits marketing and advertising marijuana to minors. Authorizes resentencing and destruction of records for prior marijuana convictions.”

The fiscal impact prepared by the state's legislative analyst is cited as:

www.stillgolden.org

“Net reduced costs ranging from tens of millions of dollars to potentially exceeding $100 million annually to state and local governments related to enforcing certain

■ Rep. Dana Rohrabacher, R-CA, speaks in support of the Adult Use of Marijuana Act ballot measure in San Francisco. AP photo.

JUNE 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

SCV Voices

It’s All about the Cash By Marianne Cederlind

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The Preferred Lenders Program is part of SBA’s effort to streamline the procedures necessary to provide financial assistance to the small business community. Under this program, SBA delegates the final credit decision and most servicing and liquidation authority and responsibility to carefully selected lenders. Lenders are considered for this status based on their record with SBA, and demonstrate a proficiency in processing and servicing SBA-guaranteed loans. Qualifying for an SBA loan may be easier than qualifying for other more tradiLet us help you buy, build or refinance your building, tional forms of financing, as SBA programs generally allow for a higher loan to value warehouse or manufacturing facility. We’re offering ratio, longer amortization periods and may terrific rates and terms, and are happy to work with you even consider the projected income of the business versus historical cash flows when to develop the right loan for you and your business. making a credit decision. 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MakerSpace Innovation Movement Arrives at College Campus By Jana Adkins SCVBJ Editor

reamers finally have a space of their own to design, engineer or fabricate innovations for the future, or for everyday use in the homes, at the MakerSpace lab set up at College of the Canyons Valencia campus in Santa Clarita. It’s not class. It’s not for credit. It’s a work space with cutting edge tools like 3D printers, laser cutters, old fashion necessities like welding tools, technology advisors, and more putting invention and innovation at the forefront for people who want to design their own projects in a creative, collaborative lab space, free of charge, said a Dean with the school. The dedicated area in the Student Center is an offshoot of the STEAM - Science, Technology, Engineering, Art and Math – fields of interest designed to spark creativity, spur collaboration and fuel innovation. “MakerSpace is a collaborative work space, in contrast to a welding lab where all of your focus is on welding, or electronics where that is the sole focus, MakerSpace will share many of those resources on one spot,” said Ron McFarland, Dean, COC School of Applied Technologies. “Students can collaborate and learn new tools or techniques,” McFarland said. “An art student can come in who wants to put electronics in a piece of cloth; or a wood shop student who needs to do some welding – MakerSpace will share many of those resources in one spot with advisors to show students how a

tool or device can be used or how to do something like soldering.” The creative lab is also open to students who might want more lab time than they can get in one of their classes, adding extra support structure for the visionary who sees the next technology breakthrough – and wants to build it. Begin with an initial $15,000 grant to get the project off the ground, the MakerSpace equipment ranges from hand tools to highend computers and microprocessors, to a laser cutter and a 3-D printer. But, the School of Applied Technologies has also applied for two to three other grants through the state to help build out the space, McFarland said. And while the primary focus of the MakerSpace lab is a creative space for students and faculty, it will also open to the public sometime next year, he said. And the creative lab, he said, hopes to launch a speaker series on the maker movement, which is gaining some steam, wherein users of the MakerSpace might eventually enter their projects into competition with other maker movements, as well as work on team-based projects. “We’re planning over the next year to start collaborating with businesses as well,” McFarland said. “Often times, if we build a robust enough MakerSpace engineers can come and try prototypes out in our MakerSpace once we build up our portfolio of tools. In short, the creative space allows people to come together and build their own innovations, representing the democratization of design, engineering, fabrication and education for all. ■

SCVEDC recognizes the leadership shaping our local economy.

Michael MacDonald Member Board of Directors

MICHAEL MACDONALD is President

and CEO of ATK Audiotek located in Valencia, California. ATK specializes in designing and implementing the most challenging audio and communication systems in both entertainment production and installed AV systems integration. Current production projects include the Academy Awards, Grammy Awards, Emmy Awards, American Idol, The Voice, the Super Bowl, large scale Microsoft events throughout the year and many more. Installed Systems integration projects include design and installation of over 360 Apple retail stores around the globe, corporate AV systems for ViaSat Satellite Systems, USC, UCLA, Yamaha International and Clear Channel Broadcasting. With a team of over 85 design, installation and production specialists, ATK has a proven track record of success at complex events and difficult environments over the last 31 years with a client retention that averages well over a decade. Michael began his career in the audio business in the production industry working on projects such as Olympics Opening and Closing Ceremonies, the Grammy Awards and Presidential Debates.

Regional leadership for a regional economy.

www.stillgolden.org

■ Computer science student Brenda De Los Santos watches a 3-D printer as it demonstrates some of the products it can create at the new MakerSpace facility to promote science, technology, art and math at the grand opening event at College of the Canyons in Valencia. Photo by Dan Watson.

■ College of the Canyons architectural design student Christian Cononico uses 3-D goggles on his cell phone to watch a demonstration at the MakerSpace grand opening event at College of the Canyons in Valencia. Photo by Dan Watson.

Creekside Place Retail Center Sold for $9.65 Million By SCVBJ Staff

scrow closed on the auction held for the Creekside Place retail center on Valencia Blvd., home to anchor tenant Barnes & Noble. The center went up for auction in late February, and within 30 days a buyer surfaced. By the end of April the deal closed. Built in 1995, Ten-Z, formerly Auction. com, handled the sale of the retail center. Opening bids began at a minimum of $2 million. Although the retail center sits in a prime spot with plenty of visibility, it has witnessed a revolving door of tenants. Only one tenant, the anchor tenant Barnes and Noble, has remained a steady retail outlet. At one point the property was reportedly arrears in property taxes, but it is unknown who last owned the retail center. The land was originally sold by Newhall Land and Farming to a developer in the 90s, said a former executive with the company. “The winning bid was $9.65 million. Escrow closed April 29,” said a spokesperson for Ten-X. “Arshia Harrison Refoua was the buyer.” A Los Angeles-based investor, Refoua is associated with at least three LLC investment companies, according to public records. The companies were formed over a nine year period, with the most recent being incorporated four years ago in May of 2012. Refoua was involved in a public dispute with “Fashion Police” star Kelly Osbourne in 2013, according to Courthouse News. Osbourne said she announced in March of

that year that she planned to move out of the West Hollywood apartment she rented from Refoua since 2010. The apartment, which had reportedly previously been occupied by Lindsay Lohan, Adam Lambert and Brody Jennery, was $9,850 a month, according to the 2012 lease renewal agreement filed with the complaint in Los Angeles County Superior Court. In 2015, while a judge ruled that Refoua could not obtain punitive damages from Osbourne in a countersuit he filed alleging she left the West Hollywood condominium she rented from him in disarray, Los Angeles Superior Court Judge Steven Kleifield did find that Refoua could move forward with claims against Osbourne for breach of contract, negligence and intentional damage to property, according to the Courthouse News report. ■

■ Courtesy photo

JUNE 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

Security Intelligence Experts to Join News Group Board By Jana Adkins SCVBJ Editor

wo new board members are expected to join the Paladin Multi-

Media Group, owners of The Signal newspaper and Santa Clarita Valley Business Journal. Both new members come out of the security and intelligence industry. Combined, Ronald T. Williams and Stephen Rybar have 60-plus years of high security level intelligence experience. The nominations are to be considered at the firm’s July board meeting. “Ron and Steve are consummate professionals, both of whom I have successfully worked with over the past 14 years,” said Charles F. Champion, CEO, PMMG and publisher of the Santa Clarita Valley Signal. “They are first class investigators and their law enforcement expertise will give The Signal and the rest of the Paladin Multi-Media Group Inc. properties an added dimension to their journalistic effort.” Ronald T. Williams entered the private sector after 22-years with the United

States Secret Service. He now works as a Chief Executive Officer with Talon Companies, a security consulting suite of companies based in Costa Mesa. Williams is involved with all aspects of security consulting, including critical infrastructure protection requiring Top Secret security clearance. During his tenure with the Secret Service, Williams worked in and supervised all divisions of the Secret Service Treasury department – now rolled up under the U.S. Department of Homeland Security – in the Los Angeles Field Office, including supervision of the credit card and financial fraud squad, the counterfeit squad, and the elite Counter Assault Team to combat terrorism. As the Lead Advance Agent, Williams was also responsible for all advance security plans and logistics coordination for Presidential, Vice Presidential, and foreign heads-of-state visits to Los Angeles, personally protecting Presidents Ford, Reagan, Bush, and Clinton, as well as dignitaries such as Queen Elizabeth, Yitzhak Shamir, and Pope John Paul. Williams is the recipient of numerous

Top Commercial Brokers Recognized By Jana Adkins SCVBJ Editor

member, has 40-plus years of experience in the security and intelligence industry, including a 12-year stint as a Special Agent in the Federal Bureau of Investigation assigned to the Bureau’s Chicago, New York, San Francisco and Las Vegas offices. During his FBI career, he investigated bank fraud, white collar crime and political corruption, and directed surveillance and undercover operations. Rybar’s military service includes two years as an intelligence officer assigned to the 82nd Airborne Division, reaching the level of company commander. ■

Ronald T. Williams

Stephen Rybar

SCVEDC recognizes the leadership shaping our local economy.

David Rendall

he region’s top commercial real estate brokers were honored April 28 by the Santa Clarita Valley Economic Development Corporation (SCVEDC). Twenty-six brokers were honored for the volume of their transactions in the SCV, as well as for their help in attracting firms to the region. Combined, the brokers recognized closed deals on over 2.5 million square feet of space in the region, according to the SCVEDC. “The brokers are an integral partner to the EDC,” said Holly Schroeder, president and CEO of the SCVEDC. “They have their finger on the pulse of the market and know which firms want to expand and which ones we can help.” CBRE brokers Craig Peters, Doug Sonderegger, Jeff Woolf, and Matt Mallers were specifically credited for a transaction the SCVEDC referred to as a big win for the valley and its residents. Last year, in part, the brokers helped Logix Federal Credit Union make the final decision to relocate their headquarters to Santa Clarita, after being based in Burbank since 1937. Logix executives Jody Evans and Phil Hart, who spoke at the event, also credited the greater business community - including officials from the city and county - for helping to make the decision to relocate to Santa Clarita an easy one. Peters also gave an overview of the new Gateway V industrial development underway. In addition, Dale Donohoe, co-owner of the Mann Biomedical Park with Oaktree Capital Management, updated the brokers on upgrades they have made to the business

awards, including the United States Secret Service Director’s Award for Special Achievement on eight occasions. In the wake of 9/11, Talon conducted Risk & Vulnerability Assessments to critical infrastructures such as water districts and transportation authorities. He was also asked by the California Gubernatorial delegation in 2002, to meet with Tom Ridge regarding homeland security. Serving as a security analyst and terrorism expert, Williams frequently appears on Fox News Channel as well as other national shows. Stephen Rybar, the second new board

Member Board of Directors

DAVID RENDALL is a licensed and

■ Michael Perlmutter, IAC Commerce Center in Valencia. Photo by Jana Adkins.

park in a little more than a year since they acquired it. Held at the College of the Canyons’ Institute for Culinary Education, the following brokers were recognized: NAI Brokers Bert Abel, John Cserkuti, Randy Cude, Yair Haimoff, Chris Jackson, and Todd Lorber; Tim Crissman of Crissman Financial; Jim Ebanks and Lauren Ebanks of Realty Advisory Group; John Erickson and Kevin Fenenbock of Colliers International; Trevor Gale and Jon Reno of Heger Industrial; Kevin Shannon and Ken White of Newmark Grubb; Nigel Stout of JLL-Burbank; and Kevin Tamura of Daum Commercial Real Estate. In addition to the special recognition given to the brokers of the Logix deal, the SCVEDC also recognized Sam Glendon, Mike Bogle, Matt Dierckman, Richard Ramirez, and Robert Valenziano with CBRE. ■

practicing real estate broker and real estate attorney in the state of California. David is the Broker/Owner of RE/MAX of Santa Clarita and RE/MAX of Valencia. He is also the owner of Group One Investment, Inc., a licensed real estate property management and investment firm. David has been actively practicing in real estate since becoming licensed in May of 2001, and has been practicing law since becoming licensed in 2003 as the founding partner of his law firm Group One Legal, PC, which specializes in real estate law and Estate Planning. He is also the Owner of Escrow Advantage, and the Managing Member of several real estate investment syndications. David is a proud Board Member of the Santa Clarita Valley Economic Development Corporation and College of the Canyons Foundation Board Member. In his spare time, he enjoys traveling with his family, and golfing and relaxing with his daughters.

Regional leadership for a regional economy.

www.stillgolden.org

SANTA CLARITA VALLEY BUSINESS JOURNAL

JUNE 2016

SCV Voices

Taking a Dip in the Tip Pool W By Brian E. Koegle

ithin the restaurant and service industry, the custom of “tip pooling” is a way of life. Under these policies, tipped employees – such as wait staff and “direct service” employees – are required to share or distribute a portion of their tips to “back of the house” support staff (e.g. dishwashers, kitchen staff, etc.) The question recently addressed by the Ninth Circuit Court of Appeal was whether such tip pools violated the federal Fair Labor

Standards Act (FLSA). Turns out, the answer to this question is “yes”! As a bit of background, federal law allows an employer to count an employee’s tips toward the hourly minimum wage obligation. This is called a “tip credit.” Specifically, 29 CFR §531.52 provides: Tips are the property of the employee whether or not the employer has taken a tip credit under section 3(m) of the FLSA. The employer is prohibited from using an employee’s tips, whether or not it has taken a tip credit, for any reason other than that which is statutorily permitted in

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section 3(m): As a credit against its minimum wage obligations to the employee, or in furtherance of a valid tip pool. Only tips actually received by an employee as money belonging to the employee may be counted in determining whether the person is a “tipped employee” within the meaning of the Act and in applying the provisions of section 3(m) which govern wage credits for tips. Employers who use this tip credit are required to provide written notice to employees that the tips they receive will be used to satisfy the federal minimum wage requirements. The notice must also state that the employer allows employees to retain their own tips, unless the employer utilizes a valid tip pool. If an employer does not use an employee’s tip income to satisfy the minimum wage, no notice is required. The FLSA also requires a tip pool to be comprised exclusively of employees who are “customarily and regularly” tipped, commonly referred to as “front-of-the-house” employees, in order to be deemed valid. Six years ago, the Ninth Circuit determined that tip pooling (sharing with back-ofthe-house employees) was lawful, at least as to those employers who did not take a tip credit against the minimum wage, because existing federal law was silent on the issue. Cumbie v. Woody Woo, Inc., 596 F.3d 577 (9th Cir. 2010). But less than a year after that decision, the United States Department of Labor (USDOL) issued its own decision that extended the tip pool restrictions of the FLSA to all employers, regardless of whether they claim a tip credit against the minimum wage. Fast forward to late-February 2016, when the Ninth Circuit, in a split decision, ruled that the USDOL opinion was appropriate and was a proper exercise of its power. Specifically, the court held that the USDOL has the right to issue a regulation defining what a tip pool is, and to which employers – whether or not they claim the tip credit against minimum wage – the law would apply. Oregon Restaurant and Lodging Association LLC v. Perez 2016 WL 706678 (9th Cir. Feb. 23, 2016). Based upon this ruling, the USDOL regulation will most likely invalidate existing, well-settled California law which permits tip-pooling for back-of-the-house employees. Under the federal rule, only employees who “customarily and regularly” receive tips can be in tip pools. This means that only those individuals who are “directly involved” in service – wait staff, bartenders, busboys, hosts – can participate, but everyone else is flat out of luck. Since federal law “trumps” state law in this circumstance, the more stringent federal policy would apply to California employers. It remains possible that the entire Ninth Circuit Court of Appeal may re-consider this ruling, or that the United States Supreme Court elects to review the decision at a later date. However, as of today, the USDOL regulation is the effective rule of law, which all employers must comply with. Failure to implement changes to existing, noncompliant policies could result in significant wage and hour violations – including class action claims. As always, consultation with well-trained employment counsel is advised when updating policies or rolling out changes in areas where significant liability can be created. Stay tuned for updates on the everchanging landscape of federal and state laws regarding tip pooling! ■

JUNE 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

Space Shuttle’s Tank Protected on Trek to Los Angeles Museum By Christine Armario & Robert Jablon

Associated Press, and SCVBJ Staff

massive space shuttle fuel tank squeezed through the streets of Los Angeles and loomed over vehicles on a busy freeway May 21 to go on display at the California Science Center. Before it reached the point of traveling urban streets, however, the external space shuttle tank got an extra dose of protection thanks to PPG, an America-based global supplier of paints, coatings, specialty materials, chemicals, glass, and fiberglass, with operations in Santa Clarita as well. Making a six-week ocean voyage by barge from NASA’s Michoud Assembly Facility in New Orleans to Los Angeles, PPG donated military-grade paint to protect the tank’s foam covering against elements during its journey. Although longer, the external tank is much narrower than the shuttle, with a diameter of 27.5 feet. The 33-ton, 154-footlong external propellant tank traveled through the Panama Canal to the Pacific and arrived at the harbor in Marina del Rey where it was offloaded to await the weekend move. It began moving a few minutes after midnight, enroute to the California Science Center in downtown L.A.

Upon arrival in California, ET-94 – the only existing flight-qualified external tank – will undergo cosmetic restoration for display at the museum. PPG helped prepare the tank using a military and defense topcoat manufactured at PPG’s Mojave plant. It was tinted to match the burnt-orange foam by the firm’s aerospace coatings color experts. Loose foam was removed from ET-94 tank at Michoud, and the PPG topcoat was applied by roller and brush to cover gaps for a consistent appearance. “PPG was a proud partner in the space shuttle program as the supplier of the only primer qualified for the external tanks,” said Duane Utter, PPG global segment manager for space and defense coatings in a statement. “This primer passed cryogenic and corrosion testing and met requirements for foam adhesion.” Known as ET-94, it was NASA's last flightqualified external tank, but it was never used before the shuttle program came to an end. External tanks not only carried propellant for space shuttles' main engines, they were the backbone of the launch system. An orbiter and two solid rocket boosters would be attached to the tank for the fiery ascent into space. Inside ET-94 are two internal tanks for millions of pounds of liquid oxygen and liquid hydrogen as well as other equipment. The

■ PPG donated military and defense topcoat manufactured at its Mojave plant for the external space shuttle tank to protect it on its voyage. Photo courtesy of PPG.

‘Heros’ Lands at New Home

■ Dennis Jenkins, Project Director Samuel Oschin Air and Space Center at the California Science Center Foundation pulls a line as the space shuttle external propellant tank ET- 94, arrives aboard a barge at Marina del Rey, Calif., on Wednesday, May 18, 2016. NASA’s only remaining version of the tank will be placed on dollies and pulled by a truck to its final destination near the California Science Center’s Samuel Oschin Pavilion in Los Angeles. AP photo.

layer of foam to keep the propellants at the proper temperature, reduce the formation of ice and to provide protection from heat as it sped through the atmosphere. External tanks used on shuttle missions would be destroyed, burning up as they fell back through the atmosphere after being discarded by the orbiter. ET-94 was built for use by the shuttle Columbia, which disintegrated over Texas as it was returning from a mission. The investigation found that foam fell off that mission's

external tank during launch and punched a hole into a wing, allowing hot gases of the fiery re-entry inside the structure. PPG said that Lockheed Martin built the external tanks, which carried propellants to power the shuttle’s main engines. The aerospace firm delivered the ET-94 tank in 2001 to NASA, where the tank was stored. The original standard-weight tanks were replaced by lightweight tanks and then super-lightweight tanks. ■

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(661) 287-5559 ■ H.E.R.O.S. Quality Manger Elie Khengerian, center, chats with attendees about a turbine helicopter engine on display in the test cell at the helicopter repair firm’s open-house event in Valencia. Photo by Dan Watson.

SANTA CLARITA VALLEY BUSINESS JOURNAL

JUNE 2016

Grand Opening Fit for the Military

SCV Voices

Make Sure Your Technology Doesn’t Get Stuck In the Past By James Deck CEO, JD Systems

he purpose of business technology is to propel an enterprise into the future. Yet, too many businesses are reluctant to make major adjustments to their current IT systems, mistakenly believing that it’s not worth the investment. The best way to approach upgrading is to use an IT roadmap that lays out a plan for your technology’s future. This way, you won’t be surprised by what the future holds. Here are three easy ways that you can “future-proof” your IT infrastructure.

Lease Whatever Computer Hardware You Can

Generally speaking, it’s easier to upgrade when you’re leasing equipment, rather than having to pay for new equipment outright. Often, a hardware refresh will be included in the terms of the lease, and at no additional cost. By leasing, you won’t have to worry about the consequences of hanging on to your old technology for too long because your hardware refresh will already be scheduled and handled by your vendor. When the cost is an operating expense, instead of a capital expense, it benefits your company’s future budget.

Layout Your IT Infrastructure to Accommodate Your Company’s Growth

Companies often make the mistake of setting up their IT infrastructure to only accommodate current computing needs, but not designing the system to handle

JDS_Half_SCVBJ_0316.indd 1

organizational growth. An IT system that’s designed for the future will have enough open access points to accommodate new users stemming from an increase in staff. It will also have enough available hard drive space and computing power to handle the IT trends that consume a lot of network resources, like BYOD (Bring Your Own Device) and The Internet of Things.

Make Sure that Your Cloud Service is Flexible

Due to the unpredictability of your company’s future computing needs, you’re going to want to have an outside company host and manage your Cloud services, either partially or exclusively. Commit to a Cloud agreement that’s flexible, instead of one that locks you into strict terms. NetworkComputing explains: Cloud deployments tend to be dynamic–not static–and must grow or shrink depending on the requirements of the client. Any agreement with a managed service provider (MSP) needs to cater to the variability that the consumptive nature of the Cloud provides. Before implementing technology for your business, take the time to discuss with your IT service provider the future of your company’s computing needs so your IT systems will be prepared for anything that the future will throw at you. ■ 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

■ (TOP) From left, Steve Griffith, Pres. Lamsco West Inc., Dante Acosta, representing U.S. Senator Steve Knight, Howard Kimberley , Group Chief Executive Officer, Shimtech Industries Limited and Anthony (Kent) Fisher, VP and GM Supplier Management , Boeing Commercial cut the cake as they celebrate at the Lamsco West Inc. grand re-openning ceremony of it’s 75,000 foot facility in Valencia. (BOTTOM) The U.S. Marine Color Guard from the Santa Clartia Valley Marine recruiting station presents the colors to begin the LAMSCO West Inc grand re-openning ceremony of it’s 75,000 foot facility in Valencia. Photos by Dan Watson.

3/15/16 9:07 AM

JUNE 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

Bypass to Hospital Emergency Room for Non-Life Threatening Visits By the numbers

By Jana Adkins SVBJ Editor

he opening of a privately owned urgent care center on the campus of the Henry Mayo Newhall Hospital may help one business grow and another manage patient care. Staffed with family practice physicians and nurses and equipped to provide laboratory studies, X-rays, laceration repair, fracture evaluation, as well as management of fevers and other illnesses, the urgent care center is owned and operated by Bud Lawrence MD, an Emergency Medicine physician and Director of Risk Management in the hospital’s Emergency Department. Lawrence is also a Santa Clarita resident. Open 12 hours a day, from 10 a.m. to 10 p.m., seven days a week patients en route to the hospital’s Emergency Room for nonemergent conditions may instead access the urgent care center – for a lot less money than an emergency room will cost, said a spokesperson for the hospital. And one less patient will also ease the load on the hospital operations. “Emergency rooms are expensive operations,” said Patrick Moody, director of marketing and public relations for Henry Mayo. “You have to have full time staff, 24-hours a day. There’s a lot more overhead to cover, making it more expensive for patients.”

Americans made 136.1 million visits to hospital emergency rooms, according to the most recent numbers reported by the Centers for Disease Control and Prevention. Only some 12 percent of those people entering emergency rooms for treatment, however, actually result in admission to the hospital. And the number of visits per 100 persons is 44.5 - or nearly half the population enters an emergency room. In other words, a very large number of people being treated in an emergency room may be able to find help in an urgent care setting which operates during off-hours when regular medical practices may not be open. Some estimates say as much as $18 billion could be saved annually if those patients whose medical problems are considered “avoidable” or “non-urgent” could be treated elsewhere. And the patients themselves can benefit as well. Not only are the fees lower to be treated in an urgent care center, if a patient does need emergency room treatment it may allow them to be seen more quickly. According to the CDC, only 27 of emergency room patients are seen by hospital staff in fewer than 15 minutes – and some can wait hours to be seen depending on the location and capabilities of a given hospital. If not life threatening, a person’s visit to an urgent care center can help the hospital as well. “It frees up capacity in the emergency

Appointments

(In Alphabetical Order)

room,” Moody said. “It allows us to provide better service to provide emergency care to those patients who really need it.”

to the high school sports medicine program which supports and trains students to become student athletic trainers. In turn, those students can help treat athletes when they are Ease of transfer injured or if they need preventive treatments Located on the hospital’s campus in the like taping. same building as the Sheila R. Veloz Breast As for the union between the hospital Center, patients do not need an appointand Lawrence, it came about when the need ment to be seen, and the Henry Mayo Urfor an urgent center was identified, Moody gent Care accepts most private insurances as said. Lawrence stepped up to provide the service privately, and the hospital welcomed the practice because it helps to relieve pressure on the emergency department at the hospital, he said. “The great news is, beyond the scope of the clinic, we have an excellent relationship with Henry Mayo’s Emer– Patrick Moody, Director of Marketing and gency Department and Public Relations. Henry Mayo Newhall Hospital can quickly facilitate a transfer of care if necessary,” Lawrence said in well as cash. For the past 10 years, Dr. Lawrence has a statement. “In addition, electronic records also provided free physical examinations to at the Urgent Care Center will integrate with Valencia High School athletes in a program the hospital’s current system, allowing the that supports athletic activities on the cam- primary care physician to easily understand pus. Student athletes pay for the exam, but and follow the results and treatment plan 100 percent of the money is donated back from the urgent care visit.” ■

Emergency rooms are expensive operations. You have to have full time staff, 24-hours a day. There’s a lot more overhead to cover, making it more expensive for patients.”

SCV Voices

5 Common Payroll Mistakes That Could Harm Your Business By Ivan A. Moran Proprietor

L Charles F. Champion

John Duncan

Sharlene Duzick

Currently: Paladin Multi-Media Formerly: U.S HealthWorks Formerly: Director of Member Group Appointed: Senior Vice President Services, SCV Family YMCA Appointed: Executive Committee, of Government Relations, Western Appointed: Member Services California Newspaper Publishers Dental Director, Henry Mayo Fitness and Association Health

Eric Grigsby

Formerly: President, CEO, Neurovations Appointed: Chief Medical Officer, Alfred Mann Foundation

Don Kimball

Formerly: Executive Vice President, Newhall Land Appointed: Community President, Newhall Ranch, FivePoint Holdings

Greg McWilliams

Formerly: President, Newhall Land Appointed: Regional President, So. California operations, FivePoint Holdings

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

arge or small payroll mistakes can occur in any size and type of business. Many business owners don’t consider all the payroll processing difficulties. Payroll mistakes can be costly and sometimes against the law, and may cost a business thousands of dollars in IRS and California Employment Development Dept. penalties as well as hours of time correcting them. Statistics show about 40 percent of small business incurs an average of $845 a year in IRS penalties due to common payroll mistakes. Here are the five most common: 1. Getting Employee Information Wrong: When employee information, such as, name, date of birth and social security is inaccurate or out-ofdate. It can cause tax filing trouble. 2. Paying/ Processing Payroll Late: Paying your employees late can result with dissatisfied employees and potentially expensive errors. 3. Misclassifying Employees: People who work for you fall into one of two categories “Employees” or “Independent Contractors.” Businesses

misclassifying employees as Independent Contractors can result in the need to pay retroactive payroll taxes. 4. Filing and Paying Payroll Taxes Late: The IRS, state and city agencies specify a due date for depositing payroll taxes. Business that can’t meet due date deadlines may face failure-topay penalties and interest. Audits can be triggered by a business owner if due dates are not met. 5 Filing out Form Incorrectly: This common error involves overpaying or underpaying payroll taxes. Payroll is a cumbersome process that takes focus and resources away from your primary line of business. For business of all sizes, outsourcing payroll has proven to be the answer to their complicated payroll compliance needs. What sets SCV Payroll apart is that we are local, professional, knowledgeable, and we utilize state-of-the-art technology. A good payroll company can save you time, money and help minimize risk. ■ Call 877-575-8830, email info@ scvpayroll.com , or go online at scvpayroll. com for more information.

SANTA CLARITA VALLEY BUSINESS JOURNAL

JUNE 2016

Drum Maker Legend Remo Belli Dies

■ Grateful Dead drummer Mickey Hart, left, Remo Belli, founder and CEO of Remo, Inc., center, and John Densmore, the drummer of the rock band “The Doors,” celebrate to the beat of “Rock the Rhythm, Beat the Odds,” a giant drum circle event at the College of the Canyons Cougar Stadium, Remo, the pioneer of the world’s first synthetic drumhead that built the beat for a half century of rock-n-roll, pop and more, died in April at age 88. AP Photo.

By Jana Adkins SCVBJ Editor

emo D. Belli, 88, founder and CEO of Remo Inc. — the Valencia-based drum and drum accessories manufacturer — has died, an executive with the company said on April 29. “He passed away in the middle of the day (Monday),” Remo Inc. President Brock Kaericher said Tuesday. “It was kind of shocking to everyone. He touched a lot of people all around the world. Phones were ringing off the hook.” The pioneer drum maker suffered from health complications that developed into pneumonia, Kaericher said. The company released a media statement that reads: “It is with great sadness that we announce the passing of Remo D. Belli, our beloved founder and leader. “An innovator, pioneer and icon of the world of percussion, he was an inspiration to us all for breaking new ground and making a difference in the world,” the statement said. Like a rock star, Remo Belli never went by his last name. Both he and his company were known simply by one name: Remo. Credited with making drums readily available during the heyday of rock ‘n’ roll, Remo first founded his firm in 1957. Considered a percussion pioneer in the industry, Remo invented the first successful drum skin from a synthetic material, Mylar, because the traditional animal skins were a problem for drummers in the rain or humidity. He patented the Mylar drum skins — and the rest became history. Remo’s invention became an industry standard.

Denny Seiwell, drummer with Paul McCartney and Wings, tweeted: “Another sad bit of news. Remo Belli of Remo heads passed away. A great man. He will be missed by many. RIP REMO.” Remo first opened a small store in Los Angeles, later moving to the San Fernando Valley and then to Valencia, where he operated in a 200,000 square foot facility on Industry Drive in the Valencia Commerce Center. Continuing to innovate, Remo launched drums using 100 percent recycled wood fiber in 1983. By the early 90s, however, Reno took note of the growing studies in education and medicine showing the healthful effects of music. He expanded the reach of his company by hosting drum circles for children and adults alike. “There is an old expression about not knowing how big a mountain is when you’re standing near it – only at a distance can you appreciate its enormity. Perhaps this was true of Remo,” said Joe Lamond, president and CEO of the National Association of Music Merchants (NAMM). “When you were around him, he made you feel like family, that you were in the circle. But standing back, one sees the enormous impact of a life well lived and the countless lives made better by his contributions.” Visiting Remo the prior month to tour the factory floor, Lamond said he never dreamed it would be his last meeting. On that visit he witnessed the depth of Remo’s connections to the hundreds of staff members, calling most of them by their first name. Lamond called it a “lesson in true leadership.” “Remo has left an indelible mark on us all,” Lamond said. Remo’s efforts to bring the joy of drumming to players

of any skill set benefited professionals, enthusiasts, children, the elderly, those at risk, and those faced with emotional or physical challenges, according to the company. He committed himself and his company to “providing drummers, the world over, with quality products and programs while striving to expand the acceptance of rhythm and in particular drumming as an integral component of an individual’s wellbeing,” the company said in its statement. In early 2015, Remo donated 30 percussion instruments to a local charter school, Santa Clarita Valley International. Lamond also paid tribute to his work in music education, music brain research, music and wellness, and recreational music-making for over three decades. On his visit, rather than talk about the past, he still found Remo for the future, celebrating the progress that had been made in bringing recreational music-making and drumming to the classroom, to the medical community, and all the way to Capitol Hill and the White House. “They say we only get so many trips around the sun and to make the most of each one,” Lamond said. “Boy, did he ever.” The company issued a statement the day after Remo’s death, saying they were mourning his passing and that he would be missed by people in all walks of life. “His spirit lives on and we will continue to pursue his vision of making drumming available to everyone alive. We will miss you. Rest in peace, Remo,” were the company’s parting words to its famed founder. ■ A version of this story first broke in The Signal newspaper on April 26.

JUNE 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

The Cheesecake Factory Selects Santa Clarita For Newest Restaurant Spot By Jana Adkins SCVBJ Editor

anta Clarita residents are finally getting what they’ve long waited for. The Cheesecake Factory is expected to open by December on Town Center Drive at the Westfield Valencia Town Center, a spokesperson for the mall confirmed. The Calabasas-based restaurant is planning to operate in 8,000 square feet of retail space formerly occupied by Sunglass Hut, Talbots and the Carlton Hair salon, across from the retailer, Pottery Barn. “Unequivocally, Cheesecake Factory has been the most requested tenant by the community since I can remember,” said Tom Miller, district manager for Westfield, in an email. “We are diligently working with Cheesecake Factory to get them open this year and are excited that they have chosen to invest in Westfield Valencia and the Santa Clarita community.” The deal for the lease officially closed the week of May 2. Genuine Cigars and The Open Book stores next door plan to continue to operate in their location on Town Center Drive. All businesses on the street will remain open during construction, said spokeswoman Stacie House.

“Cheesecake Factory has already begun construction; they’re currently in the demolition stage to re-construct the restaurant's interior,” House said. “They also plan to add a patio area.” Year after year, in surveys of Santa Clarita residents, The Cheesecake Factory is always among the top requests locals have for a new restaurant. Actually landing the eatery has been a long time coming. “I’ve been with the city for 15 years, and for as long as I can remember requests for The Cheesecake Factory have been right at the top,” said Jason Crawford, economic development manager for the City of Santa Clarita.“The Cheesecake Factory has been the most requested restaurant from the community.” An exterior makeover is coming as well, for which the restaurant itself is bearing the costs.“By the end of 2016, Town Center Drive will offer guests an entirely new experience than ever seen before,” saidDana Hansen, vice president of leasing for Westfield, in an email. “The synergy created by the opening of Urban Home, Saddle Ranch Chop House in coming months, and Cheesecake Factory will offer a brand new destination at Westfield Valencia,” he said. The Signal newspaper broke this story on May 4. ■

■ The Cheesecake Factory plans to open a restaurant at the Westfield Valencia mall on Town Center Drive across from the retailer Pottery Barn; in the space formerly occupied by the Sunglass Hut; Talbots; and the Carlton Hair salon. Above; the Cheesecake Factory in Brea. Courtesy photo.

Newhall Land Folded Into Newly Formed FivePoint Group By Jana Adkins

with three other mixed-use, master-planned communities. “We (FivePoint) remain in the market in the Santa Clarita Valley, however,” Churm ewhall Land, architects of the Va- said. “Newhall Ranch is very important to us lencia master plan and the future and we’re determined to see it built. Nothing Newhall Ranch community, has changes in that respect.” been folded into newly formed FivePoint As for Newhall Land’s executive manageHoldings LLC. ment, Greg McWilliams’ role has expanded. “Newhall Land as an entity no longer ex“He’s now the Regional President overists,” said Steve Churm, chief communica- seeing all Southern California operations, tions officer for FivePoint Holdings. Churm said. “He’ll oversee the masterplan The company, named for the family that communities of Newhall Ranch and Great once owned thousands of acres used for agri- Park Neighborhoods in Irvine.” cultural purposes before it went into the land McWilliams continues to operate out of development business, is now part of Five- the Valencia office for the foreseeable fuPoint Holdings, he said. ture, he said. In a complex arrangement, Newhall Donald Kimball, part of the Newhall Land still owns land, Churm clarified. The Ranch management team for more than Newhall Ranch project has been combined 25 years, is Community President, Newhall Ranch, in which he’ll oversee development of the community. Kimball previously served as Executive Vice President at Newhall Land. He has also served as Senior Vice President and CFO at the company. FivePoint Holdings – Steve Churm, Chief Communications now owns communities Officer, FivePoint Holdings it previously managed,

SCVBJ Business Editor

We (FivePoint) remain in the market in the Santa Clarita Valley. Newhall Ranch is very important to us and we’re determined to see it built. Nothing changes in that respect.”

■ The site of the proposed Newhall Ranch new home development off the 126 Highway. The future master plan community has been folded into FivePoint Holdings LLC. Photo by Dan Watson.

including Newhall Ranch, the San Francisco Shipyard, Candlestick Point in San Francisco, and Great Park Neighborhoods. All projects will be led by FivePoint Chairman and CEO Emile Haddad. Before the announcement, Lennar Corporation, which held an interest in Newhall Land, held equity positions in each of the four communities and the Five Point management company. Lennar is now the largest investor in FivePoint Holdings. “Investors in Newhall Land have become shareholders in FivePoint Holdings; they’re now shareholders or investors in Five Point,” Churm said. Combined, the four mixed-use communities will include approximately 40,000

residential homes and 20 million square feet of commercial space. The Newhall Ranch project alone accounts for more than one-half of those homes. All of the developments under FivePoint are located in major areas where housing is needed for employees of adjacent companies, the firm said. "FivePoint Holdings is a strategic combination of world-class real estate assets that have been in planning and development for more than a decade," Chairman and CEO Emile Haddad said in a statement. "We have the desire, expertise and the singular goal to create vibrant, sustainable communities for 21st-century California. We are excited about what lies ahead." ■

SANTA CLARITA VALLEY BUSINESS JOURNAL

JUNE 2016

BANKING

Continued from page 7 “I had a deposit at one of my offices for half a million dollars,” says George Runner, vice chairman of the California State Board of Equalization. To accommodate marijuana businesses paying cash, they’re allowed to schedule appointments in advance, especially when a large amount of currency is involved. The board also has a contract with the California Highway Patrol to provide security when those sizeable deposits come in. According to a Board of Equalization report, in 2014 dispensaries in California brought in about $570 million, which resulted in about $49.5 million in taxable income. The state estimates that if recreational marijuana is legalized, it could bring in more than $1 billion annually in tax revenues to California. With such large amounts of cash being generated by the cannabis industry, it’s no wonder that banks seem to stay interested in the marijuana trade’s potential.

Regulatory hurdles “It’s a subject that comes up at every regulatory conference I’ve attended in the last year or so,” says Tamara Gurney, president and CEO of Mission Valley Bank. But it’s hard to get a definitive answer about whether it’s okay to work with marijuana businesses, she says. Perhaps the most vexing barrier to doing business with the marijuana trade is the regulations. Banks must ensure that the pot businesses they work with adhere to all rules governing the state’s cannabis industry. Banks must review marijuana customers’ state license applications, request

CASH

Continued from page 11 where the industry is active. In all, revenue growth is driving investor appetites. But, in California the task of capturing sales revenue is going to become an even bigger one when under the new law when distribution centers will be allowed. Picture the Amazon of weed. Marijuana products will go in to those centers, be identified, inventory tracked, and then sent out to dispensaries throughout the state. All very similar to how cigarettes and alcohol are managed, Runner said.

Investors To put marijuana in perspective, the Factbook pegs estimated annual cannabis sales would come in second only to beer sales in the U.S., with sales of wine, organic foods, chocolate and craft beers following cannabis sales. Currently, most of the market value is realized on the black market and isn’t taxed, it reports. Fueling the industry’s growth, the report also notes that more outside capital than ever is flowing into the industry. The portion of new companies backed primarily with founders’ own savings and debt is at its lowest point ever, 72 percent, while nearly half of investors in privately held companies plan to invest at least $10 million each in 2016. Another study by CB Insights reports that marijuana businesses landed $215 million in venture capital investments last year, more than double the $97 million they secured in 2014. MadMen, a cannabis management

■ A Cash Transaction Unit, a high-security operation with bullet-proof payment windows set up specially for marijuana businesses paying their monthly taxes in cash, is installed in a retrofitted office space at the Oregon Department of Revenue at its Salem, Ore., headquarters. AP photo

information about the business, develop an understanding of the kinds of products that are being marketed, and monitor publicly available sources for any negative information about the business. “You’ve got to track from seedling to patient,” says Gurney. “You’ve got compliance that you will not believe. At the end of the day the risk return is just not there at this point in time.” Barring national legalization of consultancy in Los Angeles, raised $15 million from venture capital investors in April. Meadow, a software company that connects medical marijuana patients with dispensaries who deliver in the Bay area, raised $2.1 million. But like the heyday of the early days of the tech-boom and later the rush to fund start-ups, the industry may eventually settle down when the novelty wears off.

Business Normalization When Oregon allowed recreational cannabis sales last October, it saved medical marijuana dispensaries which had been on the verge of collapse due to over-saturation of the market, reported the Marijuana Business Daily. The Oregon Retailers of Cannabis Association estimated that revenues from recreational sales hit $11 million the first six days of sales. Early adopters getting into the retail marijuana sales initially made big profits, about as big as the risks they took. But, as documented in states like Colorado and Oregon where the sheer number of medical marijuana outlets in some locales began cannibalizing sales of one another, industry figures may indicate wealth, but not everyone in the industry is rich. “It's important to realize the average net household income for a cannabis farming household is about 10 percent lower than the average farming household,” said Allen from the California Growers Association. In the end, once legal and regulated, cannabis may become like any other business. Only the strongest survive. ■

marijuana, many smaller community banks choose to avoid working with cannabis businesses. Some larger banks might be willing to take the plunge, but their chances of success remain unclear. The Associated Press reports that the number of banks and credit unions across the country willing to handle pot money has jumped from 51 in March 2014 to 301 in March of this year. But in January, federal banking

BALLOT

Continued from page 13 Most of these funds would be required to be spent for specific purposes such as substance use disorder education, prevention, and treatment.”

Ballot supporters include:

Marijuana Policy Project of California; California State NAACP; Drug Policy Action; New Approach PAC; Californians for Sensible Reform; National Organization for the Reform of Marijuana Laws (NORML); Sean Parker, founder of Napster and the former president of Facebook; California Lieutenant Governor

regulators blocked a Colorado credit union from setting up a “master account” which is essential to operation. The credit union was established with help from the state and would have catered to Colorado’s legalized marijuana businesses. “There are still some gunslingers out there who know that this is a way to make a buck and they want to be the early adopter,” says Gurney. “So far, I haven’t seen any of them get very far down the road.” ■ Gavin Newsom (D); and The California Medical Association (CMA), which represents over 41,000 doctors statewide.

Ballot opposition is reported as:

Christopher Cadelago, writing for The Sacramento Bee, predicted that an organized opposition campaign would receive backing from law enforcement and labor interests if this measure reached the ballot. Dr. Ted Hole, a family practice doctor in Ventura, said, "I think the California Medical Association should have the best interest of people in mind. I don't think marijuana is something that improves people's health." He also called it a gateway drug. ■

■ Michael Sutton, former President of the California Fish and Game Commission, speaks in support of the Adult Use of Marijuana Act ballot measure in San Francisco. Backers of a marijuana legalization initiative said Wednesday they have collected enough signatures for the measure to qualify for the November ballot in California. AP photo.

JUNE 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

R eal Clear Business Advice BUSINESS CONSULTING Ken Keller

SCVBJ

n just a few short weeks, half of the year will be over. For many companies that I advise, midyear is the time for a rigorous business checkin to review sales trends and results, evaluate prospect pipelines, determine if there have been any significant changes in the client base, and measure and project backlog and shipments, expenses and profits. From that perspective, strategies and action plans are revised or created and execution begins for the second half of the year. It never ceases to amaze me that the first people, and often the only people, to get beat up during these meetings are those in sales. A successful business is far more than just revenue numbers. Every business should be running on the concept of positive cash flow, increasing volume and revenue, keeping expenses in line, managing receivables, dealing with investments and debt, maintaining focus on being profitable, and dissecting all the ways revenue and profits are generated. Companies also have people, systems, processes and external partners that are critical to the day to day execution towards company goals. Yet, not many companies have any kind of in-depth review of these critical metrics and important relationships. If they did, the financial results would be better – much better. Accountability would be inclusive of all

Too Busy Driving to Stop and Get Gas? departments in the company, not just sales. Daily productivity from every employee would be higher. What owner doesn’t want those things? I don’t mind sharing that the owner who isn’t getting what they want from their business is the owner with the attitude that they are so busy driving, they don’t have time to stop for gas. My advice is simple. This time of year, for a short period of time, take the foot off of the sales and revenue gas pedal and look at all the other gauges on the company dashboard. The midyear review should be an evaluation of all the critical moving parts of the entire company. Where gauges don’t exist, they need to be created. No one, manager or employee, and no department should be immune from being assessed versus goals. I recommend working from the outside in. Start by reviewing the sustainable competitive advantage of the business. Take the time to find out and compare how the company is performing versus the competition. What are the key differentiators? Are these elements still valid? What elements need to be strengthened? What needs to be done to highlight them in front of clients and prospects? What new ways are available to communicate to stakeholders about an improved competitive advantage? Is the sustainable competitive advantage clearly understood by everyone, and is it being communicated regularly to the remaining employees, clients, prospective clients and business partners?

Is the company close to its clients or just playing lip service to this important differentiator? Ask the question: how much time is the management team, including the owner, spending in the field? My bet is that a simple review of calendars will likely indicate that not enough time is being spent with clients or sales. If you want a better second half, get people into the field so you can see better year-end results. Address the issue of verifying that everyone in the organization received a written, formal performance evaluation. It won’t do any good to find out what your clients and prospects need and then expect an uninformed, disengaged workforce to be more committed to doing nothing but working harder if there is no incentive to do so. Every employee deserves to know what is expected of them, what their goals are, and how they will be measured. If specific and measurable goals have not been established for each employee, mid-year is the time to do it. Every day that goes by is one more day you have an employee on the payroll not doing what you want them to do and costing you every minute they are on the clock. Understand that a review is not the same as a coaching session. If an employee has not improved their individual performance in the last six months, three very valuable resources have been wasted. The first is the time, which cannot be recovered. The second is the lost productivity of the employee. The third is the frustration and burden on the manager, who has now let time pass without addressing

items that need to change. What does your facility look like? Is it neater, cleaner and better organized than it was at the start of the year, or is it messier and dirtier? People prefer to work in places that are “white glove inspection ready.” A walk through and follow-ups can do wonders for productivity and morale. A fresh coat of paint, a carpet cleaning and a general spring cleaning can instill in employees pride in their company. Ask each employee these simple questions. Start by asking: “What is working? And what isn’t working?” Follow that with: “What should we stop doing, keep doing and start doing?” Take the list and start addressing what has been shared. Often, those closest to the client and the processes know much more than they are given credit for. The Auto Club recommends stopping and stretching your legs every couple of hours when you are driving. The advice here is no different. Use the summer to review, renew and refocus your business for a better second half. ■ Ken Keller is the CEO of Strategic Advisory Boards. Strategic Advisory Boards guides leaders to their desired future through use of peer perspective, best business practices, and leadership tools, while reducing risk and unnecessary expense. For a complimentary leadership assessment, please visit www.strategicadvisoryboards.com/. Keller’s column reflects his own views and not necessarily those of The SCVBJ.

Five Things You Need to Know About Business in Crisis

By Hud Englehart Beacon Advisors

hances are fairly high that you’ve already read something today about a business or organization in crisis. A product was recalled. A familiar packaged food is reported contaminated. A government agency fails to disclose or perform. A CEO is indicted or tossed. Employees go on strike. There are fatalities at a job site. Credit card systems are compromised. A medical device is found defective. A wireless network goes dark. These kinds of events – there were over 200,000 of them that made headlines last year – can have vastly different outcomes for the organizations involved. Depending on how they are handled, stock prices may

plunge or rise. Sales may collapse or surge. Employee morale may sink or sail. Donors may flee or continue to fund. Regulators may exact penalties or help remediate. Meanwhile, the outward signs of all this consternation is unrelenting. The news media – pens, cameras and other devices in hand – are on the sidelines reporting every move, exposing every misstep, going outside normal channels to investigate causes and effects. The frenzy is the antithesis of the mission for business managers. At the very time they most need to be in control, things appear to be out of control. So here is a crash course on what businesses need to know about crisis before it happens. Keeping these five things in mind might mean the difference between weathering the storm, or running aground when the unplanned happens. First, the best crisis antidote is to tell it all and tell it fast. Among expert crisis communicators, this is code for the obvious: the best way to get out of the news is to stop making news. Cover ups, diversions, and delays will inevitably deepen your troubles. “Fast” is a relative term here. What it really means is much faster than normal. Businesses, by their nature, are deliberative organizations. In a crisis, time compresses and, aided by relentless media, there is a premium on speedy decision making. Secondly, understand that crisis is the ultimate marketing event. Every value that your brand stands for is put to the test during a crisis, and your

stakeholders will expect you to live up to those values when things aren’t going your way. Think how much better off GM would be if they behaved like customerconcerned leaders when their ignition switch problem surfaced. Next, crisis is a creature of media and communication. Let’s face it; operating incidents that don’t make the news are much different than ones that do. Most businesses aren’t accustomed to the kind of scrutiny that comes with a full blown crisis. Sure, they have contingency plans for accidents or incidents that interrupt their business. But very few have plans for dealing with an onslaught of piercing media inquiry. Third, you can’t talk your way out of trouble. In fact, it is what you do in a crisis that is important. Think of it this way: you really don’t have anything meaningful to say unless it lines up with what you are doing. Tylenol is the icon for successful crisis management because Johnson & Johnson’s actions did the talking. Taking the product off the shelf told stakeholders all they needed to know. Finally, you can plan for the unplanned. In fact, being in control means anticipating failure and being prepared to deal with it. It is the one sure way to improve your odds of success. Develop a worst case scenario and anticipate what it would be like to have the case broadcast on the six o’clock news and/or go viral over social media. Rehearse the communications response and,

like you often hear an experienced NFL quarterback say, it will “slow down” the action on the (media) playing field. One last note. More than 30 percent of all business crises connect directly to executive decisions. The point being, there is no substitute for good decision making when the pressure is on. Do what’s right. Tell the truth. Protect your customer. If you want to follow a lead, track what Commissioner Adam Silver did in the Donald Sterling/Clippers crisis to get the NBA out of the spotlight. After audio tapes of Donald Sterling surfaced on April 25, NBA Commissioner Adam Silver called them “truly offensive and disturbing” the very next day. Only four days later, Silver lowered the boom on Sterling by indefinitely suspending him from the NBA and levying a $25 million fine. Or, speaking of ‘spotlights’ if you want to avoid other’s mistakes, consider how much better off the Catholic Church would be if they protected the kids (customers) by prosecuting the priests and telling the truth at the onset. There’s no movie in that version of events. ■ Hud Englehart is managing partner of Beacon Advisors, a crisis communications consulting firm and teaches crisis communication at Northwestern University’s Medill School. Englehart is also a member of the board of directors for the Paladin Multi-Media Group, owner of The Signal newspaper and SCVBJ.

SANTA CLARITA VALLEY BUSINESS JOURNAL

SCV’s Oldest Restaurants

THE LIST Rank

JUNE 2016

Restaurant

Years in business

Type of food

Seating capacity

# Employees

(Ranked by Years) Contact

General Manager

Saugus Café

128

American

150

25861 Railroad Ave., Santa Clarita 661-259-7886 www.sauguscafe.com

Yecenia Mercado

Halfway House Café

Breakfast, lunch

15564 Sierra Hwy., Santa Clarita 661-251-0102 www.halfwayhousecafe.com

Sally Moore

Mike's Diner

Mexican/ American Classics

31537 Castaic Rd., Castaic 661-257-3233

Mike Harutunian

Backwoods Inn

Steakhouse

150

17846 Sierra Hwy., Canyon Country 661-252-5522 www.backwoodsinn.com

Alan Wright

Way Station Coffee Shop

American Breakfasts

24377 Main St., Santa Clarita 661-255-0222

Eric Leeser

Maria's Deli

Deli, Market, Pizzeria

22620 Lyons Ave., Santa Clarita 661-259-6261 www.mariasdeliscv.com

Maria and Bruno

Tiny's Submarine Sandwiches

Submarines

27251 Camp Plenty Rd., Canyon Country 661-251-5885

Teri King

Final Score

Italian-American

23754 Lyons Ave., Newhall 661-254-6557 www.finalscoresubs.com

Joe Comella

Vincenzo's Pizza

Pizza, Italian

250

24504 1/2 W. Lyons Ave., Newhall 661-259-6733 www.vincenzospizza.com

Steven Katz

Le Chene

Classic French

325

12625 Sierra Hwy., Santa Clarita 661-251-4315 www.lechene.com

Juan Alonso

Dario's Restaurant

Mexican

150

24523 Newhall Ave., Newhall 661-255-6868

Omar/Julia

Don Cuco

Mexican

150

35-39

24130 Lyons Ave., Newhall 661-254-4874 www.doncuco.com

Jose Mendez

Rattler's BBQ

BBQ

140

26495 Golden Valley Rd., Canyon Country 661-251-4195 www.rattlersbbq.com

Javier Arambula

Caruso's II

Italian

18340 Sierra Hwy., Canyon Country 661-251-8450 www.carusos2.com

Maria Nicchitta

Piccola Trattoria

Italian

120

18302 Sierra Hwy., # 107, Santa Clarita 661-299-6952 www.piccolatrattoria.com

La Cocina Bar & Grill

Mexican

28022, Seco Canyon Rd., Santa Clarita 661-297-4546

Amador Lopez, Father

Sisley Italian Kitchen

Italian

324

24201 W. Valencia Blvd., Valencia 661-287-4444 www.sisleykitchen.com

Scott (?) or Leticia Laessg

Wolfcreek Restaurant & Brewing Co.

Salads, burgers, sandwiches, pizzas, pastas, fish, entrees

165

27746 McBean Pkwy., Santa Clarita 661-263-9653 www.wolfcreekbrewingco.com

Mandy Meeks

Athena's

Greek, Italian

18853 Soledad Canyon Rd., Santa Clarita 661-251-8442 www.myathenas.com

Moses

Salt Creek Grille

Steakhouse, salads, steaks, seafood, pasta

265

24415 Town Center Dr., #115, Valencia 661-222-9999 www.saltcreekgrille.com/valencia

Greg Amsler

El Trocadero Mesquite Steakhouse

Mexican, steaks

154

24274 Main St., Newhall 661- 284-6615 www.eltrocaderosteakhouse.com

Ivanna Huicochea

Egg Plantation

Breakfast,Lunch

180

24415 Walnut St., Newhall 661-255-8222 www.eggplantation.com

Shannon & Simon Smee

La Cocina Bar & Grill

Mexican

175

28076 Bouquest Canyon Rd, Santa Clarita 661-513-0142, 661-305-0833 (Carlos)

Edgar Lopez, Son Carlos

Black Angus Steakhouse

Steak, salmon, shrimp

236

27007 N. McBean Pkwy.,Valencia 661-288-2000 www.blackangus.com

Paul Roth

Yamato Restaurant

Japanese

180

24947 Pico Canyon Rd., Stevenson Ranch 661-799-0707 yamatorestaurants.com

Kose Continued on page 25

JUNE 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

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

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SCV’s Oldest Restaurants cont.

THE LIST Rank

661-297-8058

Restaurant

Years in business

Type of food

Seating capacity

# Employees

Lic.# 462231

(Ranked by Years)

Contact

General Manager

Bella Cucina

Italian

150

27911 Seco Canyon Rd., Santa Clarita, 661-2631414 http://www.bellacucinascv.com/

Sam's Flaming Grill

Middle Eastern, Mediterranean

22880 Copper Hill Dr., Santa Clarita 661-296-0103 www.samsflaminggrill.com

Louie Pozos

Margarita's Mexican Grill

Mexican

23320 Valencia Blvd., Valencia 661-255-1136 www.margaritas-mexicangrill. com

Maria Azevedo

A&B Chinese Express

Chinese

27051 N. McBean Pkwy., Valencia 661-288-2683 www.anbexpress.com

Brandon Thompson

Persia

Persian and Mediterranean cuisine

130

24328 Main St., Newhall 661-259-4100 www.persia-restaurant.com

Marston's Restaurant

Breakfast/Lunch

130

24011 Newhall Ranch Rd., Valencia 661-253-9910 www.marstonsrestaurant.com

Katie

Larsens

Fine dining, steak and seafood

175

24320 Town Center Dr., Valencia 661-288-1002 www.larsensrestaurants.com

Richard Bokstrom

Newhall Refinery

New American food and craft beer

120

24258 Main St., Santa Clarita 661-388-4477 www.newhallrefinery.com

Shannon & Simon Smee

Route 66 Classic Grill

Burgers, BBQ

DNR

18730 Soledad Canyon Rd., Canyon Country 661-298-1494 www.route66classicgrille.com

George Thomas

Eggs N Things

Breakfast

DNR

27560 Newhall Ranch Rd., #301, Valencia 661-702-8664; Corporate office:.805-482-1302 www.eggsnthings.net

DNR = Did Not Respond

SANTA CLARITA VALLEY BUSINESS JOURNAL

JUNE 2016

Accelerate Your Rise to the Top Teresa Todd, M.B.A., M.A.

love what I do, much the same way as most people love what they do. Why else would we greet each day with a renewed sense of promise that we face yet another opportunity to help more clients, sell more units, train more people, or any other measurable objective. Yes, every day is a blank canvas waiting to be artfully crafted. But what if we could improve performance just a bit? While the expertise we possess in our chosen profession remains unique to each of us, what if we could wrap that knowledge into a perfect package? VIA’s Leadership Program does just that.

Eight weeks every other Friday starting July 29 covering high impact topics every professional needs to succeed: Leading Meetings and Time Management. Ethics and Integrity, Habits of Successful Leaders, Problem Solving and Critical Thinking, Communication Skills, and Team Building, Dealing with Different Behavioral Styles. Sessions are from 7:30 a.m. to 9 a.m. at the Dianne G. Van Hook University Center. Cost for VIA members is $200; cost for non-members is $200 plus membership dues, which vary according to company size. But you can learn more by calling Kathy Norris at 661.294.8088 or emailing kathy@via.org.

Masterson to Continue VIA’s Momentum

he Valley Industry Association’s Board of Directors recently selected the organization’s current chairman, Ed Masterson with SOS Entertainment, to serve a second term. “Ed’s history with VIA, his successes so far in 2016, and his drive and motivation to grow the organization make him the ideal candidate for a two-year term,” said Kathy Norris, CEO and president of VIA. “The extended term offers a great sense of

continuity and allows us to better implement our long term goals with an experienced chairman at the helm.” “Like many businesses and organizations, VIA has maintained an even keel in the post-recession years,” stated Masterson. “But now VIA is trending upward building momentum within the local business community and beyond.” While a typical chairperson holds office for 12-months, on occasion a two-year

term has occurred. Randy Moberg, LBW Insurance & Financial Services, served a two-year term in 2009 and 2010 helping the organization navigate the difficult years of the recession. “I’m honored for the trust placed in me for this leadership position, and appreciative of the many contributions by others that enables VIA to be both responsive to the business community and successful,” Masterson relayed. ■

The State of Manufacturing in California

hy is it that so many governors travel to California? It could be enjoy the state’s perpetual ’72 degrees and sunny’ climate or perhaps to attract and recruit businesses to relocate outside the Golden State. Much too often it’s the latter. Join VIA on Tuesday, May 17 as

VIA Luncheon Planning Calendar 2016 SPEAKER SERIES Luncheons begin at 11:45 a.m. at the Valencia Country Club, 27330 North Tourney Road in Valencia unless otherwise noted. Business professionals interested in attending should plan to reserve their seat well in advance. Reservations and payment can be made at www. VIA.org/Calendar or by contacting the VIA office at (661) 294-8088.

Tuesday, June 21 Dorothy Rothrock, president of the California Manufacturing & Technology Association based in Sacramento.

Dorothy Rothrock, president of the California Manufacturing and Technology Association addresses the status of manufacturing in California. Based in Sacramento, CMTA is the only statewide organization solely dedicated to advocating on behalf of the state’s manufacturing and technology companies. Rothrock will update attendees on important policies, bills, regulations and ballot initiatives that impact manufacturers. She will also provide insight on what CMTA is doing to raise awareness about the needs of manufacturers and its importance in California. In 2014, Rothrock was named President of CMTA, having previously served

as an energy lobbyist and the association’s vice president of government affairs since 2000. She regularly speaks to policymakers, media and civic groups about the importance of manufacturing investment and job creation, and how well-designed laws and regulations can promote environmental protection, public health and economic prosperity. This special luncheon will outline the tools manufacturers need to easily and effectively engage in political action to make a difference. To attend the presentation, contact Kathy Norris at (661) 294-8088 or visit www.VIA.org. ■

WHAT OTHERS ARE SAYING ABOUT THE VIA LEADERSHIP PROGRAM: “VIA’s Leadership Program has been a stepping stone for my business and personal success. I was able to connect, ask questions and be influenced by some of the major leaders in our community, while gaining knowledge, understanding and insight along the way. In fact, I was so grateful to have participated in the program, I took it twice!” – Chris Schrage, LBW Insurance & Financial Services “The interactive program kept everyone engaged and made for an excellent networking platform. I consider the relationships, experiences and knowledge gained through the VIA Leadership Program to be invaluable to me and I am grateful to have had the opportunity to participate.” – Eric Shalem, Reason One Event Production, SNAP Sports “The VIA Leadership program is by far one of the best investment I’ve ever made. If you believe continuous self-improvement is foundational to your personal and professional long-term success, this program is for you. The immersive and action-packed modules challenge and transform your skill sets, while allowing you to make excellent and lasting connections with like-minded professionals. – Ricardo Martinez, Courier-Messenger, Inc.

Teresa Todd is owner of Point of View Communications, LLC, a Santa-Clarita based public relations and advertising/integrated marketing agency. She is also an adjunct professor at Loyola Marymount University and can be reached at 661.257.4440 or at ttodd@povpr.com ■

WELCOME

NEW VIA MEMBERS VIA is growing and we’re proud to add these new members to our organization. Welcome to Santa Clarita’s premier business and industry connection! MLT Consulting Morris Thomas/Brett Walter 28005 N. Smyth Drive, #123 Valencia, CA 91355 (661) 295-4668 mlthomas@mltconsultingllc.com Carothers, DiSante & Freudenberger, LLP Dawn Irizarry 707 Wilshire Blvd., Suite 5150 Los Angeles, CA 90017 (213)612-6300 dirizarry@ceflaborlaw.com Sierra School Lalanie Herath 18045-18047 Sierra Highway Canyon Country, CA 91351 (661) 252-6422 lalanie1119@yahoo.com Innerspace Systems Maurele Lehman 24307 Magic Mountain Parkway Suite 547 Valencia, CA 91355 (661) 799-7978 mlehman@isifurniture.com Salt Creek Grille Greg Amsler 24415 Town Center Drive, #115 Valencia, CA 91355 (661) 222-9999 gamsler@saltcreekgrille.com Glen Oaks Escrow Shelley Valencia 25152 Springfield Court Valencia, CA 91355 (818) 502-0400 svalencia@glenoaksescrow.com KDC Technologies Dean Cho 27201 Tourney Road, Suite 201 Valencia, CA 91355 (877) 532-1112 dcho@kdctechnologies.com Nicole Nilos 28160 McBean Parkway, Unit 23103 Valencia, CA 91354 (661) 310-6167 nicolenilos@gmail.com A.V. Equipment Rentals, Inc. Mike Redmond/Cliff Loth 24933 Railroad Avenue Newhall, CA 91321 (661) 259-2155 cloth@avequipment.net

JUNE 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

Economic Development Corporation Santa Clarita Valley

Content provided by

26455 Rockwell Canyon Road | UCEN 263 | Santa Clarita, CA 91355 | (661) 288-4400 | www.scvedc.org

SCVEDC Honors “Power Brokers of 2015” in Commercial Real Estate

n April 28th, brokers and developers active in the Santa Clarita Valley community joined civic leaders and community representatives for a breakfast to celebrate the 27 Power Brokers for the year of 2015 ranked by the Santa Clarita Valley Economic Development Corporation (SCVEDC). The award ceremony was held at the student-staffed iCue Café on the campus of the College of the Canyons, and this is the third time that SCVEDC has held this annual event. “SCVEDC and the brokerage community enjoy a natural partnership,” says Holly Schroeder, President and CEO of SCVEDC in her opening remarks. “Our promises to the brokerage community include responsive staff members, quality and timely data that is timely disseminated, engaging presentation of SCV attributes and confidential assistance that is client-oriented.” The Power Brokers of 2015 represent nine commercial real estate companies based both in and outside the Santa Clarita Valley. “The 27 top brokers logged in more than 200 transactions, with a total footage of approximately 2M Square Feet, “ says James E. Brown, Manager of Business Attraction at SCVEDC. “Their impressive performance is a reflection of the fact that Santa Clarita Valley has become a destination site for a growing number of businesses looking for land, modern facilities and a business-friendly environment.” From established firms to independent agencies, from real estate industry veterans to upcoming new stars, the power

brokers have demonstrated that when opportunities abound, all it takes is dedication and hard work to rise to the top. In addition to the Power Brokers, SCVEDC also awarded “Transaction of the Year” to the CBRE-brokered deal that will bring Logix Federal Credit Union from Burbank to the Santa Clarita Valley. “What we were looking for was a minimum of 150K – 200K SF building for the next 15 years with flexibility to expand to accommodate 800 of our employees, “ says Phil Hart, Chief Operating Officer at Logix during his presentation at the Power Brokers Breakfast. “In the end, we decided to build our new headquarters in SCV with 254K SF in phased development, and I have to say SCVEDC provided critical information our executive team needed to evaluate the various locations we were considering. Without SCVEDC, I believe Logix would have selected a different location for its HQ.” The Logix transaction was an illustrative example of the closer affinity between SCVEDC and the broker community. From co-marketing, assisting in removing administrative hurdles, to providing incentives that help close the deal, SCVEDC has increasing been seen as brokers’ one-stop resource center. To promote the Power Brokers who have contributed to business growth and job increase at SCV, SCVEDC is running full-page Ad in both the Santa Clarita Valley Business Journal and the San Fernando Valley Business Journal. A new brochure tailored for the broker community also made its debut at the annual Power Brokers Breakfast event. ■

SAVE THE DATE

Tax Incentives Workshop June 23, 2016 11:30 am – 1:00 pm (Lunch will be provided)

TOPICS California Partial Sales Tax Exemption for Manufacturing and R&D Equipment City of Santa Clarita Use Tax Rebate Program

To register, please visit

www.scvedc.org/taxincentivesworkshop

Econo Watch Santa Clarita Valley

Source: Santa Clarita Valley Economic Development Corporation

Q1 ’16

Q4 ’15

Q1 ’16 Sq Ft

Commercial Vacancy Rates Office Space

11.50%

10.20%

558,147

Industrial Space

3.80%

2.70%

761,189

Retail Space

5.20%

5.60%

650,319

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

28.34%

19.00%

N/A

Industrial Space - as a % of Vacancy

38.65%

50.90%

N/A

Retail Space - as a % of Vacancy

33.02%

30.11%

N/A

Apr ‘16

Mar ‘16

Apr ’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)

Apr ‘16 9.95 1.35 2.02 23.04 49.05 7.85 60.05 54.20 45.31

Mar ’16 9.06 1.61 1.03 21.17 52.77 8.17 55.48 52.02 48.37

% Change 3.65% -16.15% 113.59% 8.83% -7.05% -3.92% 8.24% 4.19% -6.33%

Unemployment Rates* Santa Clarita Palmdale Lancaster Glendale LA County State

Apr ‘16 Mar ’16 % Change 4.3% 4.6% -6.52% 6.3% 6.8% -7.35% 5.2% 5.6% -7.14% 4.9% 4.9% -8.16% 4.7% 5.0% -6.00% 5.2% 5.6% -7.14%

SANTA CLARITA VALLEY BUSINESS JOURNAL

JUNE 2016

Commercial, Industrial & Retail Real Estate Retail Buildings

Sq. Ft.

Sale/Lease

23154 Valencia Boulevard

10,300

Lease

Price

Retail Buildings (cont.)

Sq. Ft.

Sale/Lease

$1.25 SF/MO/NNN

28111 Bouquet Canyon Road

850 - 6,000

Lease

$2.50-$3.00 SF/MO/NNN

26111 Bouquet Canyon Road

Valencia Mart

25830-25848 McBean Parkway

1,999 - 2,800

Lease

Santa Clarita Place

Granary Square

21515 Soledad Canyon Road

1,200

Lease

$1.25 SF/MO/NNN

Golden Oak Plaza

26477-26557 Golden Valley Road

900 - 2,600

Lease

$2.50 SF/MO/NNN

Centre Pointe Marketplace

18597 – 18607 Soledad Canyon Road

2,250 - 3,500

Lease

1,479 – 2,074

Lease

1,020 – 2,191

Lease

1,062

Lease

$1.85 SF/MO/NNN $3.00 SF/MO/NNN

2,733

Lease

$2.50 SF/MO/NNN

Keith Bowers (NAI Capital) 661-705-3563

24254 – 24409 Main Street 500 – 6,000 24406 Main Street - Mixed Use Project 800 - 20,000 22520 Lyons Ave - Laemmle Theater Project 1,000 - 2,200 24271 Main Street 2,160, 3,000

Lease Lease Lease Lease

$1.65 SF/MO/MG $2.25 SF/MO/MNN $2.25 SF/MO/MNN $1.73 SF/MO/MNN

Old Town Newhall Properties

23120 – 23130 Lyons Avenue

900 – 3,250

Lease

$1.10 - $1.60 SF/MO/NNN

Wayman Court

25067 Peachland Ave 25065 Peachland Ave 23638 Newhall Avenue

1,830 1,005 1,000

Lease Lease Lease

$1.95 SF/MO/MG $1.95 SF/MO/MG $1.25 SF/MO/Gross

1,350 – 1,907

Lease

1,300 – 2,442

Lease

3,053

Sub-Lease

600 - 2,362

Lease

1,275 - 8,090

Lease

$1.65 SF/MO/NNN

1,195 - 1,825

Lease

$1.95 - $12.90 SF/MO/NNN $2.75 SF/M0/NNN

Highridge Crossing

27923 – 59 Seco Canyon Rd.

1,500 - 1,600

Lease

$2.50 SF/M0/NNN

Seco Canyon Village

27095 McBean Parkway

54,000

Lease

Negotiable

The Promenade

24125 Baywood Lane

1,051

Lease

$3.25 SF/MO/NNN

Baywood at Bridgeport John Cserkuti (NAI Capital) 661-705-3551

19045 Golden Valley Road, Unit #115

4,040

Sub-Lease

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

Sale Sale Sale Sale Sale

$2.00 SF/MO/NNN

$139,000 $139,000 $139,000 $65,000 $129,000

Sarkis Ghazaryan (NAI Capital) 661-705-3550

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

4,040

Lease

Negotiable $2.20 -$3.50 SF/MO/NNN $3.00 SF/MO/NNN $2.25 SF/MO/NNN

Yair Haimoff (NAI Capital) 818-742-1659

23922 Summerhill Lane

1,195

Lease

$2.85 SF/MO/NNN

Summerhill Village

27560 Newhall Ranch Road

1,000

Lease

$2.75 SF/MO/NNN

Valencia Village

27544 Newhall Ranch Road

2,900

Lease

1,512

Lease

9,870

Sale/Lease

900 - 3,000

Lease

1,200

Sub-Lease

The Moss Center

Lease

Sq. Ft. 1,500 8,946

Sale/Lease

$2.75 SF/MO/NNN $2.25 SF/MO/NNN

$1.95 SF/MO/MG

Price

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

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

28159 Avenue Stanford Rexford Valencia Business Center

Unit 200 Unit 224 Unit 226

18,074 1,170 902

Lease Lease Lease

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

Richard Ramirez (CBRE) 661- 907-4639, Robert Valenziano (CBRE) 818- 907-4663, Craig Peters (CBRE) 661907-4616

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

Sale Lease Lease Lease Lease Lease

$6.8M $1.45 SF/MO/MG $1.10 SF/MO/NNN $1.15 SF/MO/NNN $1.55 SF/MO/NNN $1.15 SF/MO/NNN

Yair Haimoff (NAI Capital) 818-742-1659

1,685

Lease

28455 Livingston Avenue

$1.75 - $2.00 SF/MO/MG

5,600

Lease

$1.25 SF/M0/MG

Doug Sonderegger (CBRE) 818-907-4607, Sam Glendon (CBRE) 818-502-6745

420 - 1,637

Lease

$1.65 SF/MO/NNN

Plaza Posada

28486 Westinghouse Place Unit #110

1,790

Sub-lease

$1.15 SF/MO/MG

Yair Haimoff (NAI Capital) 818-742-1659, Matt Sreden (NAI Capital) 661-705-3552, Cameron Gray (NAI Capital)

28494 Westinghouse Place

736 - 2,208

Lease

$2.15 SF/MO/MG

Valencia Atrium

27200 Tourney Rd.

1, 758 - 22,919

Lease

$2.20-$2.55 SF/MO/FSG

Tourney Pointe

25129 The Old Road 23822 Valencia Blvd.

552 - 4,275 776 - 6,130

Lease Lease

$2.35 SF/MO/FSG $2.25 SF/MO/FSG

Valencia Oaks

767

Lease

$2.35 SF/MO/FSG

Bank of America Tower Kevin Fenenbock (Colliers Int.) 661-253-5204

27202, 27220 & 27240 Turnberry

1,425 - 29,028

Lease

$2.15 SF/MO/FSG

Summit at Valencia Kevin Fenenbock (Colliers Int.) 661-253-5204, John Erickson (Colliers Int.) 661-253-5202

25020 - 25061 Avenue Stanford

990 - 4,281

Lease

$1.05-$1.75 SF/MO/FSG

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

24501 Town Center Drive, Suite 103

2,810

Lease

27413 Tourney Road

$2.50 SF/MO/NNN

1,290 - 3,243

Lease

$2.55 SF/M0/FSG

Tourney Business Park

26650 The Old Road

915- 5,206

Lease

$2.65 - $2.80 SF/M0/FSG

Westridge Executive Plaza Richard Ramirez (CBRE) 661-907-4639

25152 - 25154 Springfield Court

1,187 - 20,000

Lease

$2.75 SF/MO/FSG

The Commons at Valencia Gateway

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

Lease

$2.85 SF/MO/FSG

Gateway Plaza

24200 Magic Mountain Parkway

1,300 - 6,000

Lease

27201 Tourney Road

1,532 - 3,917

Lease

$2.25 SF/MO/NNN

$2.35 SF/MO/FSG

Valencia Executive Plaza Branson Brinton (SCV Commercial) 818-414-7657

$2.5M; $1.25 SF/MO/MG

25161 Rye Canyon Road Mann Biomedical Park

1.75 SF/MO/NNN

Knoll Shopping Center

24250 Lyons Avenue

1,005 - 1,830

Lease

$3.50 SF/MO/NNN

Paul Bellgraph (NAI Capital) 661-705-3555

18926 - 18932 Soledad Canyon Road

1,500 - 2,500

$1.75 SF/MO/NNN

Bridgeport Marketplace John Cserkuti (NAI Capital) 661-705-3556

26081 Bouquet Canyon Road

Lease

VTC IV David Solomon (CBRE) 818-907-4628

Plaza Del Rancho

24021 Newhall Ranch Road

1,050

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

Cody Chiarella (CBRE) 818-502-6730

27430 Golden Valley

20605 Soledad Canyon Road 28005 Smyth Drive

23929 Valencia Blvd.

The Plaza at Golden Valley Yair Haimoff (NAI Capital) 818-742-1659, Matt Sreden (NAI Commercial) 661-705-3552, Randy Cude (NAI Commercial) 661-414-2004

27530 Newhall Ranch Road 20655 Soledad Canyon Road 23323 Aqua Dulce Road 19971 Soledad Canyon Road 18517 Soledad Canyon Road

Office/Commercial Buildings

23542 - 23560 Lyons Avenue

Gateway Village

28112 - 36 Newhall Ranch Rd.

$2.25 SF/MO/NNN

Tim Crissman (Crissman Commercial Services) 661-295-9300

Plaza Posada Matt Sreden (NAI Capital) 661-755-6654, Cameron Gray (NAI Capital)

28207- 313 Newhall Ranch Rd.

Lease

Tim Crissman (Crissman Commercial Services) 661-295-3300

22620 Market Street

Bridgeport Village Tim Crissman (Crissman Commercial Services) 661-295-9300

23542-23560 Lyons Avenue

25065 - 25067 Peachland

$3.35 SF/MO/NNN

Sunset Pointe Plaza

24003 Newhall Ranch Road

1,250 - 3,000

Santa Clarita Market Place

$1.50 SF/MO/NNN

$2.35 SF/MO/NNN

Riverview Plaza

25269 The Old Road

26850 Sierra Highway

25322 Rye Canyon Road 25230 Avenue Stanford 26320 Diamond Place #110 26320 Diamond Place #170 26320 Diamond Place #200 26330 Diamond Place #190

San Fernando Plaza

26865 – 26889 Sierra Highway

$1.75 - $2.00 SF/MO/NNN

Soledad Entertainment

$2.75 SF/MO/NNN

The Shops at Tourney Patti Kutschko (Daum Commercial) 661-670-2003

23333 Cinema Drive

18710 Soledad Canyon Road

Via Princessa Randy Cude (NAI Capital) 661-705-3553

Sutter Point Plaza

25379 Wayne Mills Place

Lease

18560 Via Princessa

The Plaza Golden Valley

27737 Bouquet Canyon Road

1,000 - 3,000

Santa Clarita Plaza

$2.00 SF/MO/NNN

Canyon Square

19923 – 19931 Golden Point

Price $1.35 - $2.50 SF/MO/NNN

$2.00 SF/MO/NNN

Building #1 14,292 Lease Building #2 1,814 Lease Build-to-Suits also available

$1.35 SF/M0/NNN $1.35 SF/M0/NNN

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

JUNE 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

Commercial, Industrial & Retail Real Estate Office/Commercial Buildings (cont.) Sq. Ft. 25115 Avenue Stanford

612 - 13,427

Sale/Lease Lease

Price $1.75-$1.85 SF/MO/FSG

Valencia Park Executive Center

28470, 28480, 28490 Ave. Stanford

1,230 – 8,474

Lease

$2.65 SF/MO/FSG

Valencia Corporate Plaza Craig Peters (CBRE) 818-907-4616, Richard Ramirez (CBRE) 818-907-4639, Robert Valenziano (CBRE) 818-907-4663

23734 Valencia Boulevard

1,523 -1,860

Lease

$1.95 SF/MO/FSG + J

Valencia Financial Center

23838 Valencia Boulevard

988-2,674

Lease

$2.50 SF/MO/NNN

Atrium Medical Building

25078 Peachland Avenue

1,000

Lease

$1.95 SF/MO/MG + E + J

Peachland Medical Arts

23502- 23504 Lyons Avenue

1,205 - 8,944

Lease

$1.45 SF/MO/FSG + J

Lyons Plaza

23542- 23560 Lyons Avenue

420 - 4,000

Lease

$1.10 SF/MO/NNN

Plaza Posada Cameron Gray (NAI Capital) 661-705-3569

22800 Lyons Avenue

720

Lease

$2.00 SF/MO/MG

The Tanner Building

24303 Walnut Street

375 - 965

Lease

$2.00 SF/MO/MG

Tim Crissman (Crissman Commercial Services) 661-295-9300

27502 Avenue Scott 28546 Constellation Road 27413 Tourney Road

3,893 5,734 1,290

Lease Lease Lease

$1.85 SF/MO/FSG $0.99 SF/MO/NNN $2.55 SF/MO/FSG

Industrial Buildings 28159 Avenue Stanford, Unit 175

Sq. Ft.

Sale/Lease

Price

8,098

Lease

$0.82 SF/MO/MG

Rexford Valencia Business Center Robert Valenziano (CBRE) 818-907-4663, Richard Ramirez (CBRE) 661-907-4639, Craig Peters (CBRE) 661-907-4616

28620 Livingston Avenue

34,330

Lease

28348 Constellation Road

4,857

Sale

21804 Witherspoon Parkway

42,440

Lease

28305 Industry Drive 28311 Industry Drive

5,224 2,786

Lease Lease

28312 Constellation Road

5,404

Sale

27955 Smyth Drive

800 - 850

Lease

$1.90- $2.00 SF/MO/FSG

Rebel Suites

25050 Avenue Kearny

750

Lease

$1.75 SF/MO FSG

Rebel Professional

19042 Soledad Canyon Road 22777 Lyons Ave

603 - 1,340 150 - 1,700

Lease Lease

$2.10 SF/MO/FSG Negotiable

Yair Haimoff (NAI Capital) 818-742-1659, Andrew Ghassemi (NAI Capital) 661-705-3039

Office/ Medical Buildings 25775 McBean Parkway 25880 Tournament Road

Sq. Ft.

Sale/Lease

1,201 – 6,682 1,043 – 4,559

Lease Lease

Price $2.76 SF/MO/NNN Negotiable

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

24355 Lyons Avenue

1,200 - 5,200

Lease

$2.25 SF/MO/NNN

Lyons Professional Building

23929 McBean Parkway

1,252 - 11,149

Lease

$2.75 - $3.65 SF/MO/NNN

25334 Avenue Stanford 28338 Constellation Road 28452 Constellation Road 28506 Constellation Road 26340 Diamond Place

17,775 3,320 3,180 4,595 2,154

Sale Lease Lease Lease Lease

24820 Avenue Tibbitts

13,045

Lease

27524 The Old Road 28368 Constellation Road, Unit #340 28368 Constellation Road, Unit #340 28406 Constellation 28368 Constellation Road, Bldg C, Unit 360 26074 Avenue Hall, Unit #5 Unit #12 Unit #21

Land (Commercial, Industrial & Retail) Acres

Sale

Price

SWC Golden Valley Rd./Centre Pt. Pkwy.

Sale

$35.20 SF ($2.3M)

1.5

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 SF

Sale Sale Sale Sale Sale

$14.35 SF ($6.25M) $0.61 SF ($3.9M) $18.00 SF ($4.7M) $6.88 SF($3.0M) $23.33 SF ($700,000)

Randy Cude (NAI) 661-705-3553

SEC Newhall Ranch Rd. & Rye Canyon Rd. 1.7 ac.

Sale

$22.50 SF

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

SWC Copperhill Drive & Rio Norte

8.65

Sale

$22.00 SF

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

Placerita Canyon Road

9.9

Sale

38.26 148.75 14.5 38 10,743

Sale Sale Sale Sale Sale

$7.42 SF/$3.2M $2.11 SF/$3.5M $0.60 SF/$3.9M $3.48 SF/$2.2M $0.37 SF/$629,000 $55.75 SF/$599,000

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

1.19 1.9 2.29 2.67 3.86 4.96 6.15

Sale Sale Sale Sale Sale Sale Sale

Sale Sale Lease Lease

$0.70 SF/MO/NNN $4,083,000/$430 SF $848,250/$225 SF $0.99 SF/MO/NNN Negotiable

4,017 3,131 3,082 3,177

Sale Lease Lease Lease

$825,000 $1.05 SF/MO/IG $0.95 SF/MO/IG $1.05 SF/MO/IG

28334 Industry Drive

35,310

Lease

$0.59 SF/MO/NNN

Matt Dierckman (CBRE) 818-502-6752

28210 N. Avenue Stanford 25060 Avenue Tibbitts

116,143 21,147

Lease Sale

$0.58 SF/MO/NNN $135.00 SF

Craig Peters (CBRE) 818-907-4616

44,548 44,944

Sale/Lease Sale

$111.47 SF $115.00 SF

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

84,984

Lease

$0.65 SF/MO/NNN

James Ebanks (Realty Advisory Group, Inc.) 661-702-8880 x12, Lauren Ebanks (Realty Advisory Group, Inc.) 661-702-8882 x18

24971 Avenue Stanford

20,415

Sale

$135 SF

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

25159 Avenue Stanford

79,701

Sale

$115.00 SF

Todd Lorber (NAI Capital) 818-933-2376

28381 Constellation Road 28446 Constellation Road 27955 Smyth Drive, Suite 107 27955 Smyth Drive, Suite 109

21,650 3,563 850 800

Lease Lease Lease Lease

$0.79 SF/MO/NNN 1.15 SF/MO/NNN $1.90 SF/MO/FSG $2.00 SF/MO/FSG

Randy Cude (NAI Capital) 661-705-3553

28159 Avenue Stanford, Unit 175

8,098

Lease

$0.82 SF/MG

Rexford Valencia Business Center

28620 Livingston Avenue

34,330

Lease

$0.65 SF/MO/NNN

Robert Valenziano (CBRE) 818-907-4663, Richard Ramirez (CBRE) 661-907-4639, Craig Peters (CBRE) 661-907-4616

24922 Anza Drive, Unit F

11,600

Lease

$0.80 SF/MNO/IG

Nigel Stout (JLL) 818-531-9685

Randy Cude (NAI Capital) 661-414-2004

Placerita Canyon/Sierra Canyon 15112 Placertia Canyon Bouquet Canyon/Vasquez Canyon 14825 Sierra Highway 24605 Railroad Avenue

9,487 3,770 3,770 3,107

Lease

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

28358 Constellation Road, Unit B

Plaza Posada Medical Center Yair Haimoff (NAI Capital) 818-742-1659, Matt Sreden (NAI Capital) 661-705-3552, Cameron Gray (NAI Capital)

7,584

Yair Haimoff (NAI Capital) 818-742-1659, Matt Sreden (NAI Capital) 661-705-3552

24355 Lyons Avenue 25050 Peachland Avenue

$2.25 SF/MO/NNN $2.20 SF/MO/NNN

$0.75 SF/MO/NNN

Tim Crissman (Crissman Commercial Services) 661-295-9300

25158 Avenue Stanford 26308 Spirit Court

Lease Lease

$123 SF ($2.2M) $0.90 to $1.15 SF/MO/NNN $0.85 SF/MO/NNN $0.89 SF/MO/NNN $1.50 SF/MO/NNN

Yair Haimoff (NAI Capital) 818-742-1659

Henry Mayo Hospital Campus Peter Lund (NAI Capital) 310-440-8500, Scott Crane, (NAI Capital) 310-440-8500, Randy Cude (NAI Capital) 661-705-3553

1,200 - 5,200 800 - 4,000

$215 SF/$1.1M

Matt Sreden (NAI Capital) 661-755-6654

24840 Avenue Stanford, #300

Negotiable

$0.99 SF/MO/G $1.05 SF/MO/G

Sam Glendon (CBRE) 818-502-6745

Nigel Stout (JLL) 818-531-9685

Lease

$0.65 SF/MO/NNN

Doug Sonderegger (CBRE) 661- 907-4607

27525 Newhall Ranch Rd., Unit 9

6,187

$1,050,000; $216 SF

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

Craig Peters (CBRE) 661-907-4716, Richard Ramirez (CBRE) 661-907-4639 Richard Ramirez (CBRE) 661-907-4639

$0.65 SF/MO/NNN

Doug Sonderegger (CBRE) 661- 907-4607

$21.00 SF/$1.1M $23.00 SF/$1.9M $21.00 SF/$2.1M $21.00 SF/$2.5M $21.00 SF/$3.5M $21.00 SF/$4.5M $21.00 SF/$5.6M

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

28903 Avenue Paine 146,000 Sale 28308 Industry Drive 54,060 Lease 25161 Rye Canyon Loop Mann Biomedical Park Building #61 10,000 - 38,465 Lease

$142 SF + 1.8 ac. Land $0.64 SF/M0/NNN $0.60 SF/MO/NNN

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

28650 Braxton

52,260

Lease

$0.65 SF/MO/NNN

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

25371 Rye Canyon

81,190

Sale

TBD

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

26858 Ruether Avenue 26372 Ruether Ave

2,132 5,764

Lease Lease

$1.05 SF/MO/MG $1.00 SF/MG

Tim Crissman (Crissman Commercial Services) 661-295-9300

28034 Industry Drive. Unit A

9,973

Lease

$0.79 SF/MO/Gross

Doug Sonderegger (CBRE) 818-907-4607

20711 Centre Pointe Parkway

10,180

Lease

$0.75 SF/MO/NNN

Craig Peters (CBRE) 661-907- 4616, Sam Glendon (CBRE) 818-502-6745

SANTA CLARITA VALLEY BUSINESS JOURNAL

JUNE 2016

Commercial, Industrial & Retail Real Estate (Cont.) Industrial Buildings (cont.)

Sq. Ft.

Sale/Lease

27420 Avenue Scott Unit C &D

68,592

Lease

Housing Stats - Santa Clarita Valley

Price $0.53 SF/MO/NNN

Craig Peters (CRRE) 661-907-4615, Doug Sonderegger (CBRE) 661-907-4607

21515 Centre Pointe Parkway

16,773

Sale

$215 SF/$3.6M

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

27756 Avenue Hopikins 28348 Constellation Road 20732 Soledad Street, Unit G

21,884 4,857 1,606

Lease Sale Lease

$0.64 SF/M0/NNN $1,050,000; $216 SF $0.89 SF/MO/G

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

Future Industrial Projects

Sq. Ft.

Sale/Lease

Price/Avail

VCC; West of I-5/SR 126/Commerce Center Drive Gateway V (Phase 1) 60,923 - 105,407 Sale /Lease IAC Commerce Center (Phase 1) 93,500 - 250,000 Lease Sierra Highway/Newhall Avenue/14 Freeway Needham Ranch (Phase 1) 16,000 - 223,530 Sale /Lease

TBD;1Q 2016 TBD; 3Q 2016 TBD; 1Q 2017

Craig Peters (CBRE) 818-907-4616, Doug Sonderegger (CBRE) 818-907-4607, Richard Ramirez (CBRE) 818-9074639

28608 Hasley Canyon Road 44,162 Lease 20,499, 23,668 Lease Avalon Business Center

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

James Ebanks (Realty Advisory Group Inc.) 661-702-8880 x 12, Lauren Ebanks (Realty Advisory Group Inc.)661702-8882 x 18

28528 Industry Drive

42,159

Sale

$134 SF/TBD

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

Future Office Projects

Sq. Ft.

Sale/Lease

27750 North Entertainment Drive

100,000

Lease

Price TBD

Entrada Gateway Center Dan Sanchez (JLL) 818-531-9682, Jim Lindvall (JLL) 818-531-9678 Note: Parties interested in properties should contact listing broker or agent for more information. To list here:

Residential Real Estate

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

Apr ‘16

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 April Sales

538,200 348,000 212 118 67 451

Mar ’16

Apr ’15

520,000 500,000 330,000 290,000 203 229 83 92 75 70 449 573

Source: Santa Clarita Valley Economic Development Corporation.

Acton New Listings. . . . . . . . . . . . . . . 22 Total Active Listings . . . . . . . . . 45 New Escrows Closed. . . . . . . . . 12 Median Sale Price. . . . . . $549,000

Newhall New Listings. . . . . . . . . . . . . . . 44 Total Active Listings . . . . . . . . . 53 New Escrows Closed. . . . . . . . . 37 Median Sale Price. . . . . . $379,000

Agua Dulce New Listings. . . . . . . . . . . . . . . . 9 Total Active Listings . . . . . . . . . 28 New Escrows Closed. . . . . . . . . . .9 Median Sale Price. . . . . . $599,900

Saugus New Listings. . . . . . . . . . . . . . . 93 Total Active Listings . . . . . . . . . 80 New Escrows Closed. . . . . . . . . 52 Median Sale Price. . . . . . $500,000

Canyon Country New Listings. . . . . . . . . . . . . . . 86 Total Active Listings . . . . . . . . 100 New Escrows Closed. . . . . . . . . 75 Median Sale Price. . . . . . $433,000

Stevenson Ranch New Listings. . . . . . . . . . . . . . . 22 Total Active Listings . . . . . . . . . 20 New Escrows Closed. . . . . . . . . 18 Median Sale Price. . . . . . $625,000

Castaic New Listings. . . . . . . . . . . . . . . 27 Total Active Listings . . . . . . . . . 35 New Escrows Closed. . . . . . . . . 24 Median Sale Price. . . . . . $452,000

Valencia New Listings. . . . . . . . . . . . . . 112 Total Active Listings . . . . . . . . 146 New Escrows Closed. . . . . . . . 103 Median Sale Price. . . . . . $480,000 Source: Southland Regional Association of Realtors. April 1 - 30, 2016

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JUNE 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

We Advise You Not to Advertise If you need to keep your business small.

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Place your contact information where business and industry will see you. To advertise call: (661) 259-1234 scvbj@signalscv.com

e Santa Clarita Valley Economic Development Corporation Presents

PowEr BrokErS of 2015

Bert Abel

NAI-SCV 818.742.1652

Daum Comm.-SCV 661.670.2000

ron Berndt

CBRE-LA North 818.907.4746

Mike Bogle

Crissman Commercial 661.295.9300

Tim Crissman

John Cserkuti

Jim Ebanks

Lauren Ebanks

John Erickson

kevin fenenbock

Trevor Gale

NAI-SCV 661.705.3551

randy Cude

Matt Dierckman

Sam Glendon

Yair Haimoﬀ

NAI-SCV 661.705.3553

Realty Adv. Group-SCV Realty Adv. Group-SCV Colliers Internatl-SCV Colliers Internatl-SCV Heger Ind.-Commerce 818.203.1788 805.405.3312 661.253.5202 818.355.4355 323.727.1144

CBRE–LA North 818.502.6745

CBRE-LA North 818.502.6752

NAI-SCV 818.203.5429

TrANSACTioN of THE YEAr LoGiX federal Credit Union relocating Corporate HQ from Burbank to the Santa Clarita Valley

CBrE BrokErS

Chris Jackson NAI-Encino 818.802.2627

Matthew Mallers CBRE-LA 805.657.6587

kevin Tamura

Daum Comm.-SCV 818.449.1631

Todd Lorber NAI-Encino 818.933.2376

Craig Peters, Doug Sonderegger, Jeﬀ woolf, Matt Mallers

Craig Peters

CBRE-LA North 818.907.4616

robert Valenziano CBRE-LA North 818.907.4663

richard ramirez CBRE-LA North 818.907.4639

ken white

Newmark Grubb Knight Frank 310.491.2006

Jon reno

Heger Ind.-Commerce 323.727.1144

Jeﬀ woolf

CBRE-LA 213.613.3203

kevin Shannon

Newmark Grubb Knight Frank 310.491.2005

Doug Sonderegger CBRE-LA North 818.907.4607

Nigel Stout

JLL-Burbank 818.531.9682

26455 Rockwell Canyon Road, UCEN 263 Valencia, CA 91355 661.288.4400 www.stillgolden.org