SCV Business Journal April 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

$2.00 · Volume 7 · Number 12

april 2016

■ Rendering of Phase I of new building construction to begin in April at the 116acre business park IAC (International Airport Centers) Commerce Center signifies the first new industrial space construction in nearly a decade. The new center sits adjacent to the Valencia Commerce Center off the Interstate-5 and Highway 126 intersection in Santa Clarita.

First Significant Industrial Building in A Decade to Commence

n little more than a year after the initial groundbreaking, Phase I of new building construction of the IAC (International Airport Centers) Commerce Center begins in April. New construction of the 116-acre business park marks the ﬁrst signiﬁcant See INDUSTRIAL page 22

Special Report:

Crushing the Wine Industry Page 6 ■ Juan Alonso displays a selection of his wines available at Le Chene restaurant in Santa Clarita. Photo by Dan Watson

Film Location Firm Has News Magnate William Randolph Hearst to Thank for its Beginnings

Business Makeover: Hold, Differentiate, Build through Diversification By Ken Keller

S ■ Hollywood Locations got is start in 1989 when it secured the rig; built by legendary newspaper magnate William Randolph Hearst. Courtesy photo.

By Jana Adkins SCVBJ Editor

ollywood Locations had newspaper magnate William Randolph Hearst’s grandiose vision for building the Los Angeles newspaper, Herald Examiner, in Mission Revival and Spanish Colonial Revival styles to thank for its launch into the movie locations business. In fact, not only did the ﬁlm location company have Hearst to thank for building the newspaper’s headquarters – ornately designed with gold, marble hand-painted

ﬂoor tiles in downtown Los Angeles in 1914, it had Hearst’s contentious, near decade-long battle with striking unions to thank for the newspaper’s demise in 1989 when it folded. “We were one of the ﬁrst companies to specialize in the commercial world,” said Santa Clarita resident since 1986, Pete Brosnan, a principal of Hollywood Locations and Los Angeles Center Studios. “We lobbied the Hearst Corp. for their old Los Angeles building in 1989 when it went out of business. Julia Morgan See HOLLYWOOD, page 23

ome owners see only trailing indicators but some are fortunate to be at the leading edge and can see the future before many recognize what is happening. Almost twenty years ago, a man who had been delivering for a furniture store got the idea to start his own moving company. In just a few years the company expanded into a full moving and storage company, capable of packing, crating, storage and delivery anywhere in the world. Through the years the business grew and weathered the economic ups and down of the North Los Angeles economy. While his business has grown over the past half a dozen years or so, the core reason for Daniel O’Brien’s business to exist is slowly disappearing. He is in the residential moving

■ Watford Moving and Storage owner Daniel O’Brien stands in the company’s warehouse, next to the stacks of wooden vault storage containers. Photo by Katharine Lotze

business and his consumer target market is not moving into California, they are leaving it. With a shrinking inbound market, in-state residential moves are becoming more price competitive, with resulting reduced margins. See WATFORD, page 24

Auto Club moving its Valencia insurance claims unit

he Automobile Club of Southern California is relocating its Tourney Road insurance claims operation in Valencia to an ofﬁce building on Turnberry Place, a broker for the deal said. Currently, the operations unit is located on Tourney Road. Representing the landlord, Great Point Investors, Colliers International Senior Vice Presidents, Kevin Fenenbock and John Erickson, leased the entire ground ﬂoor, some 29,000 square feet, in one of the buildings at the Summit at Valencia business park on Turnberry Place. The lease represented

roughly one-half of the entire building. “This will be the largest new lease transaction (renewals excluded) in Santa Clarita for over 10 years,” Fenenbock said. “There have been a lot of renewals and expansions over the years, but in terms of new deals we were unable to identify any new lease transitions as large as this in terms of a new tenant coming into a building.” AAA is expected to move a regional insurance claims unit and other related groups to the new ofﬁce by the third quarter of this year, See AAA, page 16

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SANTA CLARITA VALLEY BUSINESS JOURNAL

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APRIL 2016

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

$2.00 · Volume 7 · Number 12

Cover First Signiﬁcant Industrial Building in A Decade to Commence Crushing the Wine Industry Film Location Firm Has News Magnate William Randolph Hearst to Thank for its Beginnings

661-287-5564 Major and National Accounts Marketing Director

SPECIAL REPORT: WINE INDUSTRY

Maureen Daniels

County’s Wine Crushing Rules May Soon Change, Boosting Region’s Wine Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

maureen@signalscv.com 661-287-5566

Wine Heist History Raises Funds for New Museum . . . . . . . . . . . . . . . . . . . . . . . . . . .7

Multi-Media Account Executives

Alesia Humphries

California’s Winery Industry Leads the Nation in Output and Economic Beneﬁt to Surrounding Communities . . . . 5

Monica Jaffe Darmon McGruder

Direct Wine Shipments to Consumers Grow 4X Faster than Wine Retail Market in 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Toni Sims Administrative Assistant

Celebrity Vintners . . . . . . . . . . . . . . . . . . . . 9

Jennifer St. Clair ■ Movie horse Ranger nuzzles Peter Sherayko at the Caravan West Productions. The ranch has 12 movie horses, 100 head of cattle, donkeys, pigs, chickens and goats ready to work on the 2400 acre ranch in Auga Dulce. Photo by Dan Watson.

From the Editor

Judgment against Gruber Systems and its CEO secured . . . . . . . . . . . . . . . . . . . . 11

Whether you make it, gift it, or drink it – the wine industry in Los Angeles County has been crushed by burdensome rules imposed by the county’s health department – and, not only do we shed light on the issues, we are able to announce major changes coming in our Special Report this month. We also took a moment to share quotes some of the experts in the biomedical space gave us in tribute of Alfred E. Mann, who died last month after decades of service to improve the lives of people. And, we picked up two ﬁlm industry stories – both interesting in their own right from

Palmdale’s Commercial Building Activity Heating Up.. . . . . . . . . . . . . . .15 Economists: No hints of a recession . . . . .17 Wine Industry Stats . . . . . . . . . . . . . . . . .19 Tribute: Alfred E. Mann, Investor and Philanthropist, 1925 – 2016 . . . . . . . . . .20

a historical perspective. We hope you enjoy; and we thank the many readers who continue to call with praise or asking to subscribe to the SCVBJ – the only publication focused exclusively on Santa Clarita’s business and commerce industries.

SCVEDC . . . . . . . . . . . . . . . . . . . . . . . . . .26 Chamber of Commerce . . . . . . . . . . . . . . .27 The List . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

Business Data Central Commercial Real Estate . . . . . . . . . . . . . . .28 Residential Real Estate . . . . . . . . . . . . . . . .32

Executive Staff Publisher

661-287-5578

Jana Adkins SCVBJ Editor jana@signalscv.com

Assistant to the Publisher

Ethel Nakutin Vice President and Editor

AAA . . . . . . . . . . . . . . . . . . . . . . . . .14 Brain Balance. . . . . . . . . . . . . . . . . . . 2 Brookﬁeld Residential . . . . . . . . . . . . 2 Castaic Lake Water Agency . . . . . . . . 4 City of Santa Clarita . . . . . . . . . . . . . 4 Colliers International . . . . . . . . . . . . 32 Corporate Strategy . . . . . . . . . . . . . . . 4 D&L Rooﬁng . . . . . . . . . . . . . . . . . .18 JD Systems . . . . . . . . . . . . . . . . . . . . . 8 JRL Electric . . . . . . . . . . . . . . . . . . . 23 LBW Insurance Financial Services. . . 9 Mission Valley Bank . . . . . . . . . . . . 12

VIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

Katharine Lotze

cchampion@signalscv.com

Hospital’s Foundation Appoints New Board Members . . . . . . . . . . . . . . . . . . . . . 23

Column: VICA . . . . . . . . . . . . . . . . . . . . . .24

Daniel Watson

Charles F. Champion II

Index of Products and Services

SCV Business Services

Graphic Design Supervisor

Photographers

State’s ﬁlm program reaping early results . .23

Planning Commission approves new parking structure as part of Kaiser project . 23

Art/Production

Deborah Runions

Charles Krug Winery’s Peter Mondavi, Sr. Passes Away at 101 . . . . . . . . . . . . . . .11

$3.1 Million Loan to Finance Apartment Renovation in Santa Clarita. . . . . . . . . . . . 14

Jana Adkins

Advertising

Features

Cowboy at Heart, Actor Serves Up Western Film Props, Horses and Movie Ranch . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

SCVBJ Editor

661-287-5599

Auto Club moving one of its Valencia insurance claims unit

Californians want rum-crazy Cuba to start drinking wine. . . . . . . . . . . . . . . . . . . . . . . 10

Editorial

jana@signalscv.com

Business Makeover: Hold, Differentiate, Build through Diversiﬁcation

California Wine Exports Set Record in 2015: Worldwide Demand Grows Despite Strong Dollar . . . . . . . . . . . . . . . . . . . . . . . . 9

april 2016

NAI Capital . . . . . . . . . . . . . . . . . . . 32 Poole & Schaffery . . . . . . . . . . . . . . .16 Randal G. Winter Construction, Inc. . 32 RJB Law Ofﬁces . . . . . . . . . . . . . . . . 7 SCVEDC: Rosalind Wayman . . . . . . 7 SCVEDC: Craig Peters . . . . . . . . . . .11 SCVEDC: Dale Donohoe . . . . . . . . .15 SCVEDC: Ken Wiseman . . . . . . . . .17 SCVEDC . . . . . . . . . . . . . . . . . . . . .19 Valencia Acura . . . . . . . . . . . . . . . . . .10 Watford Moving & Storage . . . . . . . 32

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.

Jason Schaff jason@signalscv.com 661-287-5515

Online www.scvbj.com

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APRIL 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

IRS

SPECIAL REPORT: WINE INDUSTRY

California’s Wine Industry Leads the Nation in Economic Benefit

Tax Problems?

L.A. County Rules Leave Region Dry By Jana Adkins SCVBJ Editor

he nation’s multi-billion dollar wine, grape and grape product industries in the United States contribute more than $162 billion annually to the American economy, according to industry research firm MKF Research. Results of the study were presented Jan. 17 on Capitol Hill by the Congressional Wine Caucus – a 182-member body consisting of U.S. Representatives and Senators. Nationally, the industry accounts for some 1.2 million jobs and $3.5 billion in agricultural sales from grape growers alone. Add in multi-billion dollars generated in wine sales, production and distributor fees, retail and restaurant sales, and the wine-related tourism revenue generated and you have an industry ripe for the picking by any state or county willing to help support the burgeoning industry. More significantly, perhaps, of those vine crushing numbers – California accounts for roughly 90 percent of the nation’s wine production, according to the report. And statewide, counties are reaping the bounty produced by the wine industry – except for Los Angeles County with what vintners refer to as restrictive regulations by the county’s health department, many requirements of which overlap state and federal compliance rules. In fact, when researching this story, nary a research report for Los Angeles County’s wine industry could be found. So stifled does the industry appear to be in the county, it is not even recognized by the L.A. Economic Development Corp. as one of the key business clusters in the region. Yet, numerous economic benefit reports produced for the state of California and many of its counties document dramatic numbers generated by the wine industry.

California Wineries in the state were responsible for just over 100,000 jobs in the 2012, according to a report prepared for the California League of Food Processors last year. Those jobs exceeded the number of jobs in each of the top

food and beverage processing industries in the state, such as bakery products, fruit and vegetable canning, milk production and the soft drink industry. Grape production in the state accounts for the second largest agricultural industry. California wineries represent the second largest food and processing sector, accounting for some $7.4 billion in direct and indirect spending alone in 2012 – and that was just for the wine making. Another $26 billion was estimated as the total economic benefit to the state. And many counties take advantage of the benefits created by the industry.

San Luis Obispo Home to the Paso Robles wine region, the county realized some $1.785 billion in economic benefits from the region’s wine industry which included more than 8,100 jobs, wages of $241 million and more than $86 million in state and local taxes. Industry jobs accounted for nearly 8 percent of the county’s jobs, more than 9 percent of the private sector jobs, and represented the major share of job creation in 2012, according to MKF Research. While wine grapes represented one-third of the county’s total agricultural output, there are other perks besides those being cited in health studies of the benefits of moderate wine drinking. Tourism in the industry drew 1.2 million visits in which visitors to wineries, vineyards and tasting rooms spent more than $113 million, creating more than 1,800 jobs. And wineries and vineyards paid $10.5 million in property taxes. Those same business entities, however, contributed more than $1.1 million in charitable contributions – a conservative estimate the report said.

Sonoma County Farther north, the wine industry in Sonoma County contributed $13.4 billion to the economy in 2012, according to a report by Stonebridge Research Group. Because Moody Analytics pegged the entire Sonoma County economy at $20 billion, the Stonebridge report suggested the wine industry dwarfed

other sectors in terms of economic benefits. Two-thirds of wine industry and wine-inspired tourism accounted for that $20 billion. The success has led to rapid growth in the industry, as well. There were 550 wineries in the county in 2014, up from 200 in 2005. The business cluster was responsible for more than 54,000 full-time jobs supporting $3.2 billion in total wages. And transit occupancy tax collections from tourists staying at hotels reached $24 million by 2012. The wine industry accounted for 60 percent of that tourism, the report found. And the tourism economy had grown another 2.4 percent in 2014.

Napa Valley The region’s wine production had reached $13.3 billion, according to a 2012 report by the Napa Valley Vintners. The industry provided 46,000 full-time equivalent jobs and wine tourism generated more than $1 billion annually. Another $1.3 billion was generated in local, state and federal taxes. And Napa Valley vintners generated $84 million annually in charitable contributions. In total, the report pegged the industry’s total economic impact in the region at more than $50 billion. ■

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SCVEDC recognizes the leadership shaping our local economy.

Rosalind Wayman Executive Committee Member Board of Directors

ROSALIND WAYMAN is the Senior Deputy for Supervisor Michael D. Antonovich in the Santa Clarita Valley, including the communities of Gorman, Agua Dulce, Val Verde, Castaic, Sunset Pointe, Southern Oaks, Westridge, Stevenson Ranch and the City of Santa Clarita. She has worked for Supervisor Antonovich for the past 3 years and is responsible for community affairs, linking with local elected officials and representing the Supervisor at Town Council, Chamber, Civic Association, not-for-profit organizations throughout the Valley and the City of Santa Clarita. She focuses on the issues of governance, planning, roads, libraries, constituent services and delivering results to residents and businesses that improve their quality of life. She is the eyes and ears for the Supervisor in the Santa Clarita Valley. Rosalind has worked in the political arena for over 20 years spending most of her career with elected officials in the City of Los Angeles including Mayor Richard Riordan. She is also a member of the Zonta Club of the SCV and is on the Board of the SCV Youth Project. Rosalind is a graduate of CSUN with a Bachelor of Arts in Religious Studies with an emphasis in Jewish History. She has lived in the Santa Clarita Valley all of her life and is proud to serve Supervisor Antonovich’s constituents throughout the Santa Clarita Valley.

Regional leadership for a regional economy.

■ Co-owner and co-wine maker Steve Lemley moves barrels of wine in the Pulchella Winery wine cellar in Santa Clarita, Los Angeles County. Photo by Dan Watson.

www.stillgolden.org

SANTA CLARITA VALLEY BUSINESS JOURNAL

APRIL 2016

SPECIAL REPORT: WINE INDUSTRY

County’s Wine Crushing Rules May Soon Change, Boosting Region’s Wine Industry

■ Juan Alonso walks through his five-acre wine vineyard in the Santa Clarita Valley, the Alonso Family Vineyards. Photo by Dan Watson.

By Jana Adkins SCVBJ Editor

nown for its fine wines, California has become a major player in the wine market worldwide, generating billions of dollars in economic benefits to areas like San Luis Obispo, Santa Barbara, Napa Valley and Sonoma County. Decades-long burdensome rules imposed on wineries in Los Angeles County by the Department of Environmental Health, however, have literally placed a chokehold on the local industry. But, some of the rules which have been crushing the wine industry – pun intended – may all change soon thanks to a group of persistent wine growers and makers in the Santa Clarita Valley. After countless meetings with officials over the years and an in depth review by the county, wineries may soon be as exempt as breweries from burdensome, redundant regulations that have had the wine industry in a vise grip, preventing the industry from flourishing as it has in other counties throughout the state. “By 1900 we were the largest wine growing region in the United States,” said Juan Alonso of Alonso Family Vineyards and Le Chêne French Cuisine in Santa Clarita. “This was the birth of the wine industry in the United States by the Spaniards. Now we have rules going back to prohibition and the early 1950s.” Production of wine in Los Angeles County became classified as a food and milk plant, causing crush facilities to be treated as food

processing plants and imposing very expensive, undue regulations on crush plants, which resulted in very few such facilities in Los Angeles County. The misclassiﬁcation also forced professional and home-grown winemakers to leave Los Angeles County for production and storage – keeping the area dry in terms of options for producing wine. A group of Santa Clarita Valley vintners, however, were persistence in their efforts by meeting with past and present regulators for

than the major mega-producing brewers in the county such as Anheuser-Busch in Van Nuys, which wine producers felt were being given unfair advantages.

Crushing grapes

After years of meeting with former health department and county officials to no avail, some of the original group of professional lobbyist-vintners even moved on to greener pastures. But a local group stuck by their goal to make the region a friendly wine-producing county, allowing the industry to flourish. While economic studies show the industry generates billions of dollars in economic activity in other California counties, not a single report could be found documenting the health of the wine industry in Los Angeles County. Efforts of the group, however, finally paid off when they caught the – Juan Alonso, Alonso Family Vineyards and Le attention of a health deChêne French Cuisine, Santa Clarita Valley partment manager who more than a decade. They wanted the classi- listened to their reasoned arguments that ferfication changed and costly burdens removed menting wine is vastly different than the food to accurately reflect wine production and all processing industry which brings the risk of sickening the public. that it entails. And, they were very clear that “I worked for Cisco Foods and understand they did not want to be treated differently the need for the health department to make

Byy 19 1900 we were the largest wine growing i region in the United States. This was the birth of the wine industry in the United States by the Spaniards. Now we have rules going back to prohibition and the early 1950s.”

sure food is processed and stored correctly,” said wine producer Steven Hemmert with Stephen Hemmert Wines. “When food is stored incorrectly, it can sicken people. But, wine is one of the oldest products in the world. When it goes bad, it just turns to vinegar.” As costly as it is for the wine growers and producers in the region, the cost of setting up a crush facility in the county is astronomical for a small vintner, making it an industry only for the wealthy, the group contends. Just ask a local facility owner in Santa Clarita.

Pulchella Winery Producing wines originally in Paso Robles, Steve Lemley and Nate Hasper joined forces and built a crush facility in the Valencia Industrial Center in early 2012. Producing wine under their own label, Pulchella Winery, the pair also opened a tasting room in historic downtown Newhall on Main Street, helping to revive one end of Main Street that had fallen into disrepair as the city grew up around it and the masterplanned community of Valencia was developed. “It cost us over $100,000 more than it should have to open the winery just to meet health department standards that were redundant and unnecessary,” Lemley said. “Yet, some of the largest brewery plants in Los Angeles County since the 1960s have been exempt from the same regulations that strangle us. That makes no sense; beer has only half the alcohol content of wine.” See WINE INDUSTRY, page 7

APRIL 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

SPECIAL REPORT: WINE INDUSTRY WINE INDUSTRY Continued from page 6 Lemley points out that there are multiple wineries in Ventura County, right outside the boundary of Los Angeles, 80 percent of which he says are owned by people who live in Los Angeles County. Pulchella, on the other hand, had to pay $35,000 for blueprints and architectural drawings of an empty warehouse to place its fermenting tanks and wine barrels in. Another $4,500 was spent in fees for a plan check. Then they had to install equipment needed for a food or milk processing plant – neither of which they were producing – such as air curtains costing some $6,000 to hang over doorways; special sealants for the concrete floor; and special tiles – all dictated by the health department – and a janitorial sink to let grapes soak in large vats. The owners also had to install special three-compartment sinks – one to rinse, one to wash, and one to sanitize – which they didn’t need since they weren’t processing food. And then there was the concrete floor. Pulchella’s owners were forced to bust out all of the concrete floor and install special drainage, then re-cement the floor with a specified slope

to the tune of another $25,000. To ﬁnish the job, a special eight-hour water permeable paint at the cost of $275 a gallon was required to paint the warehouse just in case a hose or pipe burst so it wouldn’t affect their wine – except their wine wasn’t sitting out in the open, it was all encased in containers as the grapes fermented. All of these requirements, and expense, came on top of the costs to purchase the equipment to produce wine in their crush facility. “As a result, we are one of the few wineries in Los Angeles County,” Lemley said, who once spent three months creating a 75-page report documenting wine industry standards throughout the state – few of which place wineries under the supervision of their county health departments. And many of the multitude of regulations are redundant, he said. The wine industry is already regulated by the federal government’s Department of Agriculture, for instance. The only difference, he points out, is that while the USDA requires wineries to maintain sanitary conditions at all times, they don’t tell vintners how to achieve it in minute detail. For instance, the USDA doesn’t hand out detailed, speciﬁc rules for installing a three-compartment sink.

It cost us over $100,000 more than it should have to open the winery just to meet health department standards that were redundant and unnecessary. Yet, some of the largest brewery plants in Los Angeles County since the 1960s have been exempt from the same regulations that strangle us.” – Steve Lemley, Co-owner, Pulchella Winery

■ Co-owners and co-wine makers Steve Lemley, left, and Nate Hasper of Pulchella Winery in Valencia. Photo by Dan Watson.

“The rules really impact how we work and how competitive we can be with everybody else in the state,” he said.

Reyes Winery Robert Reyes of Reyes Winery in Agua Dulce agrees. He explained the three-compartment sink is useless because their wine barrels don’t even fit in the sinks. And he was required to get a 100-gallon water heater – which he doesn’t use. Acquiring his winery in 2002, and planting his vineyard in 2004, the winery finally was able to open for business in 2011 – nearly a decade after first buying the property. He spent four-and-a-half years creating the infrastructure and cultivating the vineyard to the tune of around $1.5 million, he said. Even smaller permitting issues such as getting clearance from the Fish and Wildlife (formerly Fish and Game) was an extra burden, adding he is 60 miles from the ocean.

Without a healthy industry in the county, it’s very difficult for local vintners to promote their wines, Reyes said. One way the vintners find to promote their wine and the industry is by joining forces for wine tasting events, which also benefits local SCV charities – as is the case in counties throughout the state. The fourth annual Sierra Pelona Valley Wine Festival is again being held at the Reyes Winery in Agua Dulce April 10 from 12 to 4 p.m. It benefits the SCV Senior Center. “We promote the viticulture ourselves in this county, but it’s been a difficult process,” Reyes said. “To promote wine in this region of Los Angeles County requires the help of cities like Santa Clarita and Palmdale to promote the industry as a destination.” Promoting the wine industry locally would keep tax dollars local, as well, said Beth See WINE INDUSTRY, page 19

Wine Heist History Raises Funds for New Museum

wine tasting event to beneﬁt a nonproﬁt group’s new museum project on March 19 toasted not only the wine, but Santa Clarita Valley’s history as well. And there was also a twist of irony to the whole project. The SCV Historical Society held a fundraiser at the old Saugus train depot, located in Heritage Junction Historic Park inside William S. Hart Park in Newhall, to raise funds to move to its permanent location inside the Pardee House, also located in the park. “Right now our museum is in the baggage room of the train station,” said Board Member Barbara Martinelli. “It doesn’t allow us to show off the baggage room. And we have a gift shop in the waiting room. You don’t get a good feel for what it really looked like as an old train depot.” According to local lore, a big wine heist allegedly took place at the Saugus Train Station during the Prohibition era. When a train stopped at the former location of the Saugus station, the crew stepped off to travel across the street to the Saugus Café for a meal. And rumor has it that with the crew eating lunch across the street, a group

of locals broke into the rail car containing a shipment of wine from the San Antonio Winery siphoning off some of the wine into their own containers. At the time, no one was the wiser, the heist was not discovered immediately, and hey, it was Prohibition after all – no one ﬁled a police report. But, decades later at a barbecue one of the heist participants confessed, telling family and friends how he and his buddies had gotten away with the wine. Now, ironically, the new home of the museum, the Pardee House, was originally built as a Good Templars Hall in October 1890 by Henry Clay Needham, who ran for U.S. Senator on the Prohibition ticket. Needham founded the Newhall Water Company, according to the SCV Historical Society. The Templars advocated prohibition, and today the International Organization of Good Templars still promotes the idea of temperance, educating people “around the world on a lifestyle free from alcohol and other drugs.” Well, a good old-fashioned wine heist story and a wine tasting event don’t really serve as any conﬂict for opening the historical museum in the old Pardee House.

■ Howard Pointer, left, pours samples of Mystic Hill wines for attendees during The Wine Heist fundraising event for the SCV Historical Society held in the Saugus Train Station at Heritage Park in Newhall. Photo by Dan Watson.

The house will serve an admirable cause: to preserve and protect all of Santa Clarita Valley’s history. When sufﬁcient monies are raised to open the new museum, it allows the SCV Historical Society to use the train station for exhibits that have more to do with the history of trains

and rails in the depot, Martinelli said. And the money for the new home is much needed. “We need to ﬁnish updating the electrical, do a little construction and painting,” she said. “Moving the gift shop and museum will allow us to enlarge the museum overall.” ■ By Jana Adkins, SCVBJ Editor

SANTA CLARITA VALLEY BUSINESS JOURNAL

SPECIAL REPORT: WINE INDUSTRY

SCV Voices

Five Tips for Saving Money on your IT By James Deck, CEO JD Systems

aving a little on your technology can go a long way, but cutting too many corners can lead to additional problems and expensive downtime. Here are a few ways you can cut costs without creating long term issues.

Don't be Afraid to Replace Got an older PC that's causing you a lot of issues? Older technology is typically more expensive to run; and, after a while, it's cheaper to simply buy a new desktop than it is to continue pouring money into something that always seems broken. It’s a great time to buy workstations, and if things are tight you can even buy refurbished desktops to keep costs low.

Enforce Energy Efficiency If you reduce the amount of energy your technology uses each day, your utility bill from the electric company will decrease as well. Switching to LCD monitors (if you are still using old CRT dinosaurs), and enforcing company-wide policies to turn off monitors or put workstations to sleep at night can make a big difference.

Stop Dealing with Vendors You hired your employees to work, not

JDS_Half_SCVBJ_0316.indd 1

APRIL 2016

sit on the phone with a PC manufacturer because your hard drive crashed. Businesses waste money by paying employees to go around in circles with vendor tech support all the time. IT firms like JD Systems build relationships with vendors and are able to get things done faster. This means issues get resolved quickly and your employees don't need to deal with less-than-helpful support.

Stop Paying your Phone Bill Yes, you heard us right. Cease paying your phone company by switching over to a VoIP solution instead. Small businesses save up to 80 percent on their telephone communication expenses, so the investment pays for itself quickly. Many VoIP systems allow your users to take their phone and use it anywhere; giving you increased flexibility and functionality.

Get Proactive Monitoring and Maintenance Nearly all day-to-day IT issues can be completely prevented with just a little bit of maintenance. With some proactive maintenance, companies can reduce the amount of downtime they experience. Traditional computer support only fixes computer issues when they arise. Seek an IT service company that provides proactive monitoring and maintenance to ensure fewer issues plague your business. ■

Direct Wine Shipments to Consumers Grow 4X Faster than Wine Retail Market in 2015

n the United States, 43 out of the 50 states allow direct shipment of wine to consumers, and these consumers continue to embrace this wine-by-mail option. The newly released 2016 Direct-to-Consumer Wine Shipping Report issued by ShipCompliant and Wines & Vines shows the volume of winery shipments to consumers grew at a rate four times greater than the overall U.S. retail off-premise wine market grew in 2015. The report announced that in 2015, the volume of wine shipped from wineries to consumers increased by 8.5 percent over 2014. This is a rate of growth four times that of the 2 percent sales volume increase off-premise channels experienced, according to Nielsen. Wineries shipped over 4.2 million cases of wine in 2015, which represented $1.97 billion in sales, an 8.1 percent increase over 2014.

Other highlights in the report include: • Napa wineries reached an all-time high shipping record in 2015 – over $1 billion worth of wine was shipped directly to consumers. • Consumers continued to embrace Oregon wine, with its shipments increasing by 14.6 percent in 2015. • Massachusetts wine lovers ordered $27.5

million worth of wine in the first year of legal direct-to-consumer shipping. • Shipments of Cabernet Sauvignon led all other varietals, representing 30 percent of all sales of direct-shipped wines. • The District of Columbia, California, Oregon, Washington, and Wyoming saw the most wine shipped directly to consumers on a per capita basis. • Wines shipped directly to consumers remain an expensive proposition, with the average bottle of wine shipped costing $38.23. “We are seeing the direct distribution channel for wine continuing to be a significant source of sales for wineries, and an increasingly desirable way for consumers to obtain wines that they can’t find in their local retail outlets,” said Jeff Carroll, Vice President of Compliance & Strategy, ShipCompliant. The annual Direct-to-Consumer Wine Shipping Report is based on millions of anonymized transactions, processed through ShipCompliant’s compliance platform and Wines & Vines’ exclusive database of all 8,638 wineries, which depict the total sales volume and value of wines shipped directly from wineries to consumers in the United States. ■ – Business Wire

3/15/16 9:07 AM

APRIL 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

SPECIAL REPORT: WINE INDUSTRY

Celebrity Vintners Frances Ford Coppola

Joel Cox

Mario Andretti

Fame: Film director, producer and screenwriter

Fame: American film editor

Fame: Legendary race car driver

Records: Coppola is perhaps most widely known for directing the three-Academy Award-winning film, “The Godfather.” But Coppola is also known for “Apocalypse Now,” “Patton,” “The Outsiders,” “Rumble Fish, “The Cotton Club” and “Bram Stoker’s Dracula.” Vineyard: Francis Ford Coppola Winery in Geyserville in Sonoma County, California Love of Wine: Winemaking has been a Coppola family tradition for several generations. His grandfather, Agostino Coppola, used to make wine in the basement of his New York apartment building.

Records: Perhaps best known for collaborating with Clint Eastwood in over 30 films, Cox first served as an assistant editor for Sam Peckinpah’s film, “The Wild Bunch.” He won the 2015 Academy Award for Film Editing for “American Sniper,” and in 2008 was presented with the Ignacy Paderewski Lifetime Achievement Award. Vineyard: Mystic Hills in Paso Robles, California Love of Wine: In the late 80s and early 90s Cox would take trips to Paso Robles and fell in love with the rolling hills lined with beautiful trees, grazing cattle, and the vineyards. In 2004, his and his family’s dream of owning property in Paso Robles came true when they bought 14 acres just 20 minutes from the heart of downtown Paso Robles, planting grape vines on nine of those acres.

California Wine Exports Set Record in 2015: Worldwide Demand Grows Despite Strong Dollar

.S. wine exports, 90 percent from California, reached $1.61 billion in winery revenues in 2015, an alltime record and a 7.6 percent increase from 2014. Volume was up 4.1 percent from the previous year to 461 million liters or 51.2 million cases. "California wines appeal to consumers across the globe who recognize the unique quality and excellent value of our wines. Consumers are also attracted to California's trend-setting lifestyle, innovative cuisine, beautiful wine country destinations and emphasis on environmental responsibility—all of which are reflected in our wines," said Robert P. (Bobby) Koch, Wine Institute President and CEO. Of the top five export markets for California wines, the European Union's 28-member countries were the largest, accounting for $622 million, followed by Canada, $461 million; Hong Kong, $97 million; Japan, $96 million; China, $56 million. "More than 170 California wineries participate in the Wine Institute's California Wine Export Program and export to 138 countries supported by 15 representative offices around the world which develop markets in 25 countries," said Wine Institute Vice President of International Marketing, Linsey Gallagher. “California wine exports have increased 91 percent by value

in the last decade and we're seeing a ‘premiumization’ trend with dollar sales outpacing volume growth. This growth is occurring despite heavily-subsidized foreign competitors, high tariffs and strong dollar." "Removing obstacles to trade and ensuring that California wines have fair and equal access to international sales channels remain our top focus," said Tom LaFaille, Wine Institute Vice President and International Trade Counsel. "Unfortunately, more and more countries and provinces are ‘modernizing’ their laws to benefit only local wine producers. The Wine Institute's Export Program offers many tools to support California Wines category building efforts around the world, including a consumer website (discovercaliforniawines.com) in eight languages and, social media campaigns in 16 countries, and a strong partnership with Visit California to increase tourism to California wine regions. The program organizes California's participation in international trade shows and trade missions. Last year's active schedule of California wine country visits brought in 150 international media and wine buyers from 15 countries. For more information, see: Wine Institute's California Wine Export Program ■ Released by PRNewswire-USNewswire

Records: Andretti is one of only two drivers to win races in the European Formula One, U.S.-based IndyCar, World Sportscar Championship and NASCAR. To date, he remains the only driver ever to win the U.S.-based Indianapolis 500 (1969), Daytona 500 (1967) and the European series Formula One World Championship. He retired from active driving at the end of 1994. Vineyard/Wine: Andretti Winery in Napa, California Love of Wine: Mario’s racing career led to his love of wine as he traveled the world to race in Asia, Africa, Europe, North America and South America. ■

SANTA CLARITA VALLEY BUSINESS JOURNAL

APRIL 2016

SPECIAL REPORT: WINE INDUSTRY

Californians want rum-crazy Cuba to start drinking wine at two-day symposium

he 3.5 million tourists who ﬂooded Cuba last year downed oceans of mojitos, lakes of daiquiris and rivers of thin, sour beer. Only an odd few accompanied their ropa vieja and croquetas with wine - mostly overpriced, low- to mid-grade vintages from Chile, Argentina and Spain. That may be about to change, at least around the margins of Cuba’s once-dismal dining scene. Some of the United States’ largest vintners want to turn this island of

sweet rum and ﬂat state-brewed beer into a haven for robust California zinfandel, oaky chardonnay and powerful cabernet sauvignon. Thousands of private restaurants have cropped up around Cuba in recent years under economic reforms designed to soften the shock of cutbacks in the troubled statecontrolled economy. Particularly on the high end, those restaurants’ clients are increasingly American, part of a 76 percent

surge in U.S. tourism “to 161,174 last year “ that followed Presidents Raul Castro and Barack Obama’s declaration of detente at the end of 2014. Hoping to ride both trends, about 100 California wine producers, distributors and exporters descended on Havana this week for a two-day symposium to introduce Cuban restaurant owners and managers to their products. The California Wine Symposium was

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organized by the California Wine Institute, associations of Napa Valley and Sonoma Valley wine producers, and Sonoma-based U.S. Cava Exports, a two-year-old company founded to export California agricultural products to Cuba. The event featured tastings, talks on California’s vineyards, and one-on-one meetings between U.S. business people and Cuban restaurateurs and state officials. “This is a spectacular meeting,” said Orlando Rodriguez, owner of Waoo!!, a three-year-old, 20-employee restaurant in Havana’s trendy Vedado neighborhood. “It arouses interest, which prompts business, which creates profits.” Some 50 private restaurants, or paladares, and hundreds of sommeliers and buyers for state-run restaurants attended the conference, whose participants included representatives of the E&J Gallo and Francis Ford Coppola wineries. It’s been legal for Cuba to buy wine and other agricultural products from the U.S. for years, but Cuban officials say they stopped importing California wine in 2005 because the U.S. trade embargo prohibits American producers from selling agricultural goods to Cuba on credit. Obama allowed sales of most goods to Cuba on credit through executive action last week, but lifting the ban on credit for farm products would require an act of Congress. Cuba has never been a big wine-drinking country, but it imports some 360,000 cases of wine a year from countries that allow sales on credit. Darius Anderson, head of U.S. Cava Exports, said he hopes to be shipping California wine to Cuba by the end of the year. “We’re working on the shipping, we’re working on the financing, and we hope to have them all solved by mid-year, have two or three containers on the water and get them here by the holidays,” he said. Only a small number of Cuban government agencies are allowed to import goods, creating a chokepoint of inefficiency and bureaucracy that makes it virtually impossible for private businesses to bring in large quantities of goods from other countries. Paladar owners depend on black-market goods, items bought at retail stores or supplies brought in the suitcases of people paid to “mule” products from the U.S. and other countries. The lack of a legal wholesale market is widely seen as one of the main hindrances to the efficient development of private enterprise in Cuba. “It doesn’t matter to me if a private person or the state does the importing. What matters is that there’s somewhere to buy this wine,” said Julio Valdes, a representative of the Five Corners Trattoria in Old Havana. “It’s important for us to have a variety for our clients. Right now we have Chilean, Italian and Spanish wine that we buy in stores bit by bit.” Francisco Chacon, sommelier of the state-run Hotel Conde de Villanueva, said he is focused on the ratio of price to quality and the U.S. being just 90 miles from Cuba offers a major advantage. “It makes much more economic sense for us to bring a wine from the United States than from Spain,” he said. ■ – Business Wire

APRIL 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

SPECIAL REPORT: WINE INDUSTRY

Charles Krug Winery’s Peter Mondavi, Sr. Passes Away at 101

eter Mondavi, Sr., a Napa Valley innovator who steered his family’s Charles Krug Winery through more than a halfcentury of revolutionary change in the industry, died on February 20th at his home in St. Helena, California, on the Charles Krug estate surrounded by his family. He was 101. Mondavi began his career in wine when Napa Valley was chiefly known for inexpensive jug wine, or “vin ordinaire,” as he would refer to it. In 1943, his parents purchased Charles Krug Winery, which even then enjoyed a long pedigree. Prussian emigrant Charles Krug founded his eponymous winery in 1861, making it the oldest operating winery in the Napa Valley today. Mondavi worked the property with his family and eventually assumed the role of president and CEO upon his mother’s death in 1976. Known for introducing a number of significant advancements to California winemaking, Mondavi earned legendary status among Napa Valley vintners. As a student, he studied the effects of cold fermentation on white and rosé wines, which were then being fermented at higher temperatures and losing their distinct characteristics through oxidation. His revolutionary research and practical methods resulted in the production of exceptionally crisp, fruity white wines. A winemaker above all else, Mondavi was quoted in the Wine Spectator speaking to his

joy, which was “to linger in the laboratory, testing and experimenting.” A recent review in sommelier Kelli White’s tome, Napa Valley Then & Now, refers to his 1959 Vintage Selection Cabernet Sauvignon as: “Simply stunning, this impossibly youthful wine is incredibly vibrant and powerful.” To advance his wine knowledge and winemaking prowess, Mondavi toured the wine regions of Europe with fellow vintners. Under Mondavi’s tutelage in 1963, Charles Krug was the first winery in Napa Valley to import French oak barrels for ageing, a common practice among today’s winemakers. In addition, he was among the pioneering vintners who planted pinot noir and chardonnay where dairy cows had previously dominated in the Carneros region of the valley. Mondavi was proud of his insight and drive to amass prime land parcels for vineyard production. He acquired more than 800 acres of premium Napa Valley land in the late 60s and early 70s at a mere fraction of current land values. This land-buying spree established the foundation for the winery’s estate-driven wines. Fiercely determined to keep the winery family owned in the midst of corporate buyouts happening up and down Napa Valley, Mondavi led an effort to preserve the family’s estate vineyards. During a nine-year period ended in 2010, Mondavi invested $22 million in replanting 400 prime acres of vineyards

U.S. Labor Department obtains $1.1M Judgment against Gruber Systems and its CEO

he U.S. Department of Labor won a million-dollar judgment against Santa Clarita-based Gruber Systems Inc., Gruber Systems Inc. Employee Stock Ownership Plan, and CEO John Hoskinson, accused of misusing employee retirement account funds,. Hoskinson also briefly served as the director of the Small Business Development Center in Santa Clarita. A suit, filed as a result of an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration, alleged that the defendant’s actions resulted in losses to the Gruber employee retirement plan. It claimed money should have been set aside to fund the retirement accounts of Gruber retirees, but was instead steered into stock purchases to prop up the financially distressed company. Actions by the defendants allowed for the purchase of company stock at prices significantly more than fair market value, the Department of Labor charged. “Employee Stock Ownership Plans are intended to promote employee ownership and fund employees’ retirements, not to bail out a plan sponsor experiencing financial distress,” Crisanta Johnson, regional director for the Employee Benefit Security Administration in Los Angeles, said in a statement. The suit sought a reversal of the prohibited

stock transactions, the restoration of any related plan losses, and a court order requiring the defendants to account for and restore losses to plan participants. District Judge Stephen V. Wilson ordered Gruber and Hoskinson to pay the company’s employee retirement fund $1.1 million within 30 calendar days of the Jan. 28 judgment. They were fined $220,000 in civil money penalties. Trustees were newly appointed to distribute the plan’s assets to the participants and beneficiaries. The judge also permanently barred Hoskinson from serving in the role of a fiduciary to any employee benefit plan protected by the Employee Retirement Income Security Act. An attorney for the defendants did not respond to a request for comment. Hoskinson was appointed as director of the Small Business Development Center on March 2 of last year. The charges were announced May 29. In September 2015, Catherine Grooms replaced Hoskinson as director of the small business assistance center. “We will vigorously pursue plan fiduciaries who engage in transactions with employer securities that are prohibited by ERISA,” Johnson said. ■ This story originally published in The Signal newspaper on March 4, 2016.

with primarily red Bordeaux varietals, instituting sustainable farming practices and implementing state-of-the-art winemaking equipment in the process. Mondavi invested a lifetime in building, growing and protecting his family’s business. Asked late in life to note his proudest accomplishment, he replied, “Never losing control of our family winery. If I could, I would tell my father: I did the best I could during the difficult years. I was determined and we held on.” He officially retired in 2015 but he was a fixture at the winery years after he turned over the day-to-day operations to his sons, regularly climbing two flights of stairs to his office to settle in to work. When asked by a group of visiting Nike executives, he credited his stamina to “living a good life and drinking great wine.” Mondavi was born in Virginia, Minnesota, on Nov. 8, 1914, to Cesare and Rosa Grassi Mondavi, natives of Sassoferrato in the Marche region of Italy. He was the youngest of four children, and his parents originated from very modest means and had no winemaking lineage. Prodded by the local Italian community at the onset of Prohibition, Mondavi’s father, Cesare, became a wine-grape buyer, traveling to California to purchase fruit for his homewinemaking neighbors in Minnesota. The burgeoning success of his wine-grape shipping

■ Peter Mondavi, Sr. Courtesy photo.

business brought the family to Lodi, California, in 1922. Peter Mondavi got his start as a boy nailing boxes for his father’s wine-grape shipping business. He later went on to earn a degree in economics from Stanford University in 1938, but was drawn to winemaking, performing research in oenology at the University of California, Berkeley. Mondavi left an indelible impression on the California wine industry, but also passed on the legacy to the next generations of winemakers within his family. ■ – Business Wire

SCVEDC recognizes the leadership shaping our local economy.

Craig Peters Member Board of Directors

CRAIG PETERS is the top industrial real

estate professional in the Santa Clarita and San Fernando Valley and has consistently performed at the highest level on both a regional and national basis. Craig has been recognized on multiple occasions as the San Fernando Valley Broker of the Year and the prestigious Colbert Coldwell Circle (top brokers nationally), as well as been honored by SCVEDC each year as a Top Broker in the Santa Clarita Valley. Craig leads one of the top performing industrial teams in the nation and received the title of Executive Vice President of CBRE in 2004. His team of 11 professionals and support members prides itself on hard work, excellence and exceeding client expectations.

Regional leadership for a regional economy.

www.stillgolden.org

SANTA CLARITA VALLEY BUSINESS JOURNAL

APRIL 2016

SCV VOICES

Looking to Purchase, Refinance or Renovate Commercial Real Estate? By Robert Scott

look at all of the possibilities, including the Small Business Administration’s 7(a) Loan Program. While not widely known or understood outside the lending industry, the SBA 7(a) Loan Program offers borrowers up to 90 percent ﬁnancing for the purchase of owner/user commercial real estate that is fully

n today’s competitive ﬁnancing market there are a number of options available to business owners seeking

funding. When it comes to the purchase, reﬁnance or renovation of commercial real estate, borrowers owe it to themselves to

amortized with no balloon payments. For the purpose of the loan program, owner/ user is deﬁned as a minimum of 51% of total occupancy. With a maximum loan amount of $5,000,000 and terms as long as 25 years for commercial real estate acquisition, construction or reﬁnance, the 7(a)

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Program could serve as a real solution to many borrowers. Due to the inherent nature of SBA financing, in some instances qualifying for an SBA loan may actually be easier than qualifying for other, more traditional forms of financing. SBA programs generally allow for a higher loan-to-value ratio, longer amortization periods and may even consider the projected income of the business and not just historical cash flows when making a credit decision. These factors can be extremely helpful, particularly to a rapidly growing company. SBA 7(a) loans can be used by qualifying borrowers to purchase, renovate or refinance real estate, additionally these loans can also be used for acquiring fixed assets, such as heavy machinery or other equipment, restructuring current debt, working capital and in some cases can even be used to fund the acquisition of a new business. It is important to understand that the SBA does not make loans directly to small businesses. Rather, the SBA sets the guidelines for these loans, which are then made by the SBA’s lending partners. Because the SBA guarantees the lender that a portion of the loan will be repaid, it significantly lessens the risk to the lending partners. So when a business applies for an SBA loan, it is actually applying for a commercial loan that is structured according to SBA requirements with an SBA guaranty. SBA loan guaranty requirements and practices can change as the government alters its fiscal policy and priorities to meet current economic conditions. Therefore, you can’t rely on past policy when seeking assistance in today’s market, which makes it all the more important that you work with a lender that will help guide you through the process and identify what type of program may best fit the needs of your company. SBA 7(a) loans and other types of specialized lending make it possible for qualified businesses to get the financing they need, often times with much more flexible terms than more conventional loan options. Two resources to help you learn about SBA and other forms of specialized lending are available at www.sba.gov or www.MissionValleyBank.com. ■ Robert Scott is executive vice president and chief credit officer of Mission Valley Bank which is a full-service, independent, commercial bank with Preferred SBA Lender status serving the San Fernando and Santa Clarita Valleys. Bob can be reached at (818) 394-2300.

APRIL 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

Cowboy at Heart, Actor Serves Up Western Film Props, Horses and Movie Ranch By Jana Adkins SCVBJ Editor

ctor and Caravan West Productions owner, Peter Sherayko, parlayed his movie career, love of acting and many western film roles into a one-stop film ranch in Agua Dulce for “everything western.” Perhaps best known for his role in the movie “Tombstone,” credited with a who’s who list of actors, this old cowboy walks, drives and rides by horse the some 2,400 acres of his Agua Dulce ranch - or caravans around the country buying antiques and western memorabilia with his sidekick Karma, a rescued Australian Shepherd, to survey the property and ensure everything remains pristine and authentically western to the film and television industry. Preserving a virtual museum collection of western guns and rifles, more than 185 old western saddles, 400 cowboy hats, historic costumes, props in an old general store and a library of 5,000 on the Old West and American history – not to mention the farm animals and 17 horses that he cares for – make Caravan West Productions the one-stop shop for everything from movies to commercials to documentaries. “We’re the only company that supplies everything for a western,” Sherayko said. “I call myself the Wal-Mart of westerns. I can put out a loss leader and charge less than others because I have everything onsite.” If you need buckaroos who know how to ride his horses or shoot the antique rifles, Sherayko can wrangle those extras up, as well. It’s cost-effective, he said, because filmingtime costs money and on his ranch production crews don’t need to track down any kind of props from around the country because he’s got them all stored on the ranch. As one director for the History Channel said when filming at the ranch, “If Peter doesn’t have it, we don’t need it.” Right now, Sherayko’s waiting to hear back on a TV series as to whether it will be filming on the ranch. But, it stays busy enough handling one or two film projects a month.

One-stop shop Last year Caravan West Productions hosted 47 movies, TV shows, and commercials on the ranch. The history network ﬁlmed four seasons of “Top Shot,” where sharpshooters compete for a prize, at the ranch. “Any Bullet

■ Peter Sherayko stands with some of the hundreds of period-correct props on site at Caravan West Productions in Agua Dulce. Photo by Dan Watson

Will Do” filmed there – the Agua Dulce ranch stood substitute for Montana. And the newly released movie, “Traded,” starring Michael Pare, Trace Adkins, Kris Kristofferson and Tom Sizemore, filmed there, as well. Moreover, while other prop companies have hourly workers, Sherayko serves 24/7. “We were doing a commercial one night and the director asked me if I could get chickens for him at 5 a.m. the next morning,” he said. “I said no problem, because I live on the property. We just rounded them up and gave him chickens the next morning.” When film productions need extras for a film, or people with the experience to ride the horses – some trained to rear on their hind legs, allow gunslingers to shoot off them and to not bolt with the loud noises, Sherayko meets those needs as well. “I hired 100 people for ‘Deadwood,’” he said. “They all know how to handle the old weapons. It’s a better deal than Central Casting – I have the people, the costumes, the weapons and the horses.” Of course, with acting in his blood, Sherayko takes a turn playing roles in film projects, as well. A short film on Civil War history

■ Property master Arman Gosparini, left, and Peter Sherayko with his dog Karma, walk past the original old house built in the 1890s which stands on the 2,400 acre ranch at Caravan West Productions in Agua Dulce. Photo by Dan Watson

,being filmed at the property was short one key part – that of General Grant. They asked him to play the role, which he did. For another film project involving a young couple wanting to buy and restore an old house – one that is haunted – Sherayko was so colorful showing the house to the production crew, they asked him to play the actual Realtor in the film. He did. Furthermore, Sherayko has set his business up in a way that distributes profits to many. The ranch property he manages is owned outof-state. The owner gets film payments for use of the ranch, Sherayko gets money acting in films both on and off the ranch, the extras he hires make money, and the money Caravan West Productions earns all go back into the business to buy more authentic props. But, it was a personal disaster that led him to set up shop in Agua Dulce.

Mudslide Sherayko and his wife, Susan, an executive in charge of production for Hallmark Channel’s "Home & Family," bought a horse property in the 1980s and lived there for 20 years while Sherayko continued collecting western memorabilia. He was outgrowing the property and kept saying “I have to move.” Ultimately, a mudslide destroyed the house, forcing that decision. “I always said, God came in and said ‘I’ll help you move,’” he said. He and Susan drove out to the Santa Clarita Valley weekly until they found a house on a secluded dirt road. Six months later, they stumbled upon an adjacent ranch property – perfectly located within Hollywood’s beneﬁcial 30-Mile Zone nearly a decade ago. Originally intended to be a movie ranch by someone afﬁliated with Metro-GoldwynMayer Studios, the ranch was eventually willed to someone who lives in Tennessee. Like a skilled cowboy, Sherayko tracked the owner down and made him a deal. He would live on the property and run it as a western prop house and movie ranch. In exchange, the owner would get one-half of all the proceeds. “We partnered up,” he said, no pun intended. “I run everything and he gets half of all the proceeds,” he said. “His wife calls me

the ‘money tree.’” Now Sherayko manages 2,400 acres – a bonus because everyone involved originally thought the property was only 1,700 acres. He refers to himself as the property’s overseer. Between projects, he packs up his other companion, Karma, pops a cigar in his month, and drives cross-country collecting antiques. When the van is ﬁlled with memorabilia, he returns home saying he feels “like an Okie during the dust bowl driving back across the country’s back roads.”

W liv We live on a dirt road, whichh I love. It’s an analogy of life,” Sherayko said. “If you drive too fast, it’ll be bumpy and you’ll damage your car. If you take it slow easy you’ll get through it and have a good time.”

– Peter Sherayko, owner, Caravan West product

In his spare time, Sherayko played a oneman show, “Buffalo Bill” at Santa Clarita’s Cowboy Festival last year. He also tends to the chickens, goats, miniature burros and pigs, and his horses that he views as family. “They stay with me until they die.” He also manages to write collector books such as “Tombstone: The Guns and Gear.” But, mostly he enjoys the ﬁlm-friendly community in the Santa Clarita Valley. He helped train an intern to become a prop master for the Sable Ranch movie ranch located in the city’s movie ranch overlay zone which grants credits to ﬁlm productions, he said. And, he loves the rural nature of Agua Dulce. “We live on a dirt road, which I love. It’s an analogy of life,” Sherayko said. “If you drive too fast, it’ll be bumpy and you’ll damage your car. If you take it slow easy you’ll get through it and have a good time.” ■

528

in value

SANTA CLARITA VALLEY BUSINESS JOURNAL

APRIL 2016

$3.1 Million Loan to RECEIVE RECEIVE RING AAA TRAVEL’S EXCLUSIVE

Finance Apartment Renovation in Santa Clarita

528 inin value 528 value ALOHA DAYS

1 1

By Jana Adkins CVBJ Editor

DURING AAATRAVEL’S TRAVEL’S EXCLUSIVE DURING AAA EXCLUSIVE ®

ALOHA DAYS ALOHA DAYS 694

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WAI`I, THE BIG ISLAND

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ending company iBorrow made $3.1 million available to an undisclosed party for the purchase and renovation of two residential properties in Newhall, said the lending company’s executive. Built in 1995, the property sits on about a one-third acre and has four buildings on it, with four units each, said Brian Good, CEO of iBorrow. “We provide debt for opportunities for buyers who want a quick close,” Good said. “The kind of deals where a buyer has two to three weeks to close and can’t go to a bank, or it takes too long to close with an institutional lender, or their credit has been impaired over the last 10 years.” The loan on the apartment complex includes a 26,747 square foot lot with 16 oneand two-bedroom units. It also includes four two-car parking garages and an additional 24 surface parking lots. The new owner is gutting each unit, and rehabbing it, he said. “We financed the loan so the borrower could buy the property with private money,” Good said. “It’s an L.A. broker who invests in real estate as an operator/developer. We’ve worked with the investor many times before.” The borrower has purchased more than 20 commercial real estate properties throughout the southwestern United States, a spokesperson for the company said. While “private money,” or hard money, loans aren’t cheap – interest rates run higher than conventional loans , in the old adage of “time is money” these loans can save a deal maker money when time is of the essence. The short-term bridge loans are usually secured by first trust deeds on a property. And these types of loans have accounted for an

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The value listed is per booking and equal to the total inclusions and member benefits listed. 2Rate is per person, land only, based on double occupancy in resort view accommodations for check-in on September 6, 2016. Rates for other travel dates may vary. Rate shown includes government-imposed fees and taxes. At the time you purchase your package, rates may be higher. Advertised rate does not include any applicable daily resort or facility fees payable directly to the hotel at check-out; such fee amounts will be advised at the time of booking. 3Subject to availability and change. 4Kids stay free in same room as adults using existing bedding. Occupancy limits apply. 5 value listed is per booking and equal to the totalhotel inclusions and member benefits listed. person, landDays only, based occupancy in resortforview accommodations for check-in ALOHA DAYS OFFERS: Minimum 5-night accommodations and round-trip transpacifi c air2Rate requiredis toperreceive all Aloha offers. $100onoffdouble offer applies to new bookings Hawaiì at select 6 eptember 6, 2016. for other travel shown includes taxes. At the and timenotyou purchase ratesfimay reflected in rate your shown.package, hotels Rates made March 1 – April 30, dates 2016 formay travelvary. MarchRate 1–December 20, 2016.government-imposed Savings is per booking andfees takenand at time of booking, Complimentary ve-daybe higher. Advertised 3 7 does not includeHertz anymid-size applicable dailyvalidresort or Hawaiì facilitybookings fees payable directly to the fee5amounts will 6–December be advised20, at the of booking. to availability and car rental for new made March 1 – April 30,hotel 2016 at for check-out; travel March 1such – June and September 2016.time Mid-size car value is Subject $378. Activity 4 voucher does notroom apply air/car-only bookings. Valid toward theOccupancy purchase of alimits selectlisted. optional2activity. validperson, for hotel direct bookings. stay free in same asto adults existing bedding. apply. isge.perKidsbooking and equal to the totalusing inclusions and member benefits Rate isNotper landactivity only, based on double occupancy in resort view accommodations for check-in 5 HA DAYS OFFERS: Minimum 5-night hotel accommodations and round-trip transpacifi c air required all Aloha Daystaxes, offers. off offer applies to new Hawaiì at select taxes, surcharges, gratuities, transfers, excursions are additional unlessgovernment-imposed otherwise indicated.toFuelreceive surcharges, government surcharges and deposit, payment andbookings cancellationforrates 2016. RatesAirfare, for other travel dates may vary.andRate shown includes fees and taxes. Atother the$100 timenot you purchase your package, may be higher. Advertised ls made March 1terms/conditions – April 30, 2016 for totravel 20,Rates, 2016. Savings is per booking taken at timeto ofchange booking, reflected in rate shown. five-day are subject changeMarch without1–December notice at any time. terms, conditions, availability andand itinerary are subject withoutand notice. Other airline restrictions, including,6Complimentary but 3 1 2 check-out; such fee amounts will be advised at the time of booking. Subject to ude any applicable daily resort or facility fees payable directly to the hotel at availability and The value listed is per booking and equal to the total inclusions and member benefits listed. Rate is per person, land only, based on double occupancy in resort view accommodations for check-in z mid-size car rental validtofor new limitations Hawaiì bookings madepolicies Marchand1 fees, – April 30, 2016tickets for travel March – pre-fl Juneight5 notifi and cation September 2016.vary Mid-size value is $378. 7Activity not limited baggage and fees, standby non-refundable and change fees1with deadlines6–December may apply. Fees20, and policies among car airlines on September 6, 2016. Rates for other travelbedding. dates may vary. Rate shown includes government-imposed fees and taxes. At the time you purchase your package, rates may be higher. Advertised yherfree same room as Please adults using existing Occupancy limits apply.check-out; doesinnot apply to air/car-only bookings. Valid toward the purchase select optional activity. Notfee valid for will hotel direct bookings. without contact the airline directly and toaspecifi questions may have. Certain restrictions apply. AAAtimemembers must3Subject make advance reservations ratenotice. does not include any applicable daily resortforordetails facility fees answers payableofdirectly tocthe hotel at you such amounts be may advised atactivity the of booking. to availability and through 5 AAA5-night Travel to 4obtain Member ts and Member Benefi ts mayunless vary based oncapply. departure date. Rate change. 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Savings is per booking and taken at time of booking, and reflected 6 notOther hotels made March 1 agent – Aprilfor30,Pleasant 2016 forHolidays travel March 1–December 20, 2016. Savings is per booking and taken at time of booking, and not reflected in rate shown. Complimentary five-dayin rate shown. Complimentary five-day ® local AAA Club acts as an . CTR #1016202-80. 7 policies vary among airlines baggage and fees, standby policies and fees, tickets change ight5notifi deadlines maycarapply. and Hertz car rental valid for newmade Hawaiì March bookings made March April 30, 2016 for travel MarchMarch 1 fees – Junewith 51and September 6–December 20, 2016. Mid-size value isFees $378. Activity rimited rentalto valid for limitations new©mid-size Hawaiì bookings 1 –non-refundable April1 –30, 2016 forand travel –pre-fl June andcation September 6–December 20, 2016. Mid-size car value is $378. 7Activity Copyright 2016not Auto Services, LLC. All Rights voucher does applyClub to air/car-only bookings. ValidReserved. toward thetopurchase ofc aquestions select optional Not valid for hotel direct activity bookings. out notice. Please contact the airline directly for details and answers specifi youactivity. may have. Certain restrictions may apply.activity AAA members must make advance reservations through apply to air/car-only bookings. Valid toward the purchase of a select optional activity. Not valid for hotel direct bookings. Airfare, Benefi taxes, surcharges, gratuities, Member transfers, and excursions are additional unlesson otherwise indicated. FuelRate surcharges, Travel to obtain Member ts and savings. Benefi ts may vary based departure date. is government taxes, other surcharges and deposit, payment and cancellation terms/conditions are and subjectexcursions to change withoutare at any time. Rates, terms,otherwise conditions, availability and itinerary subject to change without notice. Othertaxes, airline restrictions, including, but and deposit, payment and cancellation rcharges, transfers, additional unless Fuel government other surcharges rate at timegratuities, of printing and is subject to availability and notice change. Not responsible for errors orindicated. omissions. Youraresurcharges, not limited to baggage limitations and ® fees, standby policies and fees, non-refundable tickets and change fees with pre-flight notification deadlines may apply. Fees and policies vary among airlines AAA acts to as change anwithout agentnotice. for Pleasant Holidays .directly CTR #1016202-80. are Club subject without notice any time. Rates, terms,to specifi conditions, availability andrestrictions itinerary are AAA subject change without notice. Please contact theat airline for details and answers c questions you may have. 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AAA Club acts as anfor agentdetails for Pleasant Holidays . CTR #1016202-80. ease contact thelocal airline directly and answers to specific questions you may have. Certain restrictions may apply. AAA members must make advance reservations through Copyright © 2016 Auto Club Services, LLC. All Rights Reserved. ain Member Benefi ts and savings. Member Benefits may vary based on departure date. Rate is of printing and is subject to availability and change. Not responsible for errors or omissions. Your ■ Courtesy photo ts as an agent for Pleasant Holidays®. CTR #1016202-80. 16 Auto Club Services, LLC. All Rights Reserved. ®

increasing number of deals as banks pulled back the reigns on lending during the recession. The loans help borrowers move quickly when conventional lenders might move too slowly to cement a deal. The property purchase was a savvy one for a couple of reasons. For one, lease rates for the property are currently below market value. And revitalization of the downtown Newhall area made the investment that much more attractive. “Everything’s getting upgraded,” Good said. “A lot of people are hoping to upgrade the whole area. That’s what you like to see when you make an investment or loan.” As for iBorrow, the direct lender formerly operated under the name Eagle Group Finance for 15 years until the owner changed the name recently. “I changed the name one month ago,” Good said. “I just wanted to upgrade the name and make it more modern. And there were too many different types of lenders around the country using the word ‘Eagle’ in their name that had done some bad things. We just didn’t want to be associated with them.” The company believes the new name better communicates its activities and updates its approach to loan originations that make for more efficient and quicker deal closings, it said in a February press release. iBorrow handles a multitude of loans ranging from $1 to $20 million, with a fixed yield that currently ranges between 8-12 percent. “When we started the business, our average loan size was $1 million,” Good said in the release. “Today, average balances on our loans are trending towards $6 million and we expect both the size and quantity of our loans to increase as investors interested in yield and borrowers interested in capital contribute to a more robust opportunity.” ■

APRIL 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

Palmdale’s Commercial Building Activity Heating Up Post-Recession By Jana Adkins SCVBJ Editor

etail, energy, educational and aerospace companies are helping to generate a lot more building in Palmdale with the activity visible on streets all around the city. And for those buildings constructed just before the recession that forced spec buildings to stand partially or fully vacant, those are all filling up now, said city officials. “A lot of the building completed in 2007 or 2008 on 10th Street north of Rancho Vista Blvd. was all filled up now,” said John Mlynar, communications manager for the city of Palmdale. “There’s a lot going on right now between hotels, manufacturers and medical facility construction,” he said, “and, more projects that aren’t yet official are in the works. “The biggest thing to hit Palmdale is that Northrop Grumman was awarded the Long Range Strike Bomber from the Department of Defense,” said Kari Blackburn, economic development manager for the city. “We’ve partnered with Antelope Valley College and WorkSource Center to increase the aerospace training programs we have now for entry level aerospace jobs.” Those jobs will bring a demand for everything from housing to retail to local services. Just last July, the Palmdale Regional Medical Center announced it was expanding and groundbreaking for that project is expected to occur in April or May. Three spec buildings were already completed and another three are awaiting construction. Space in the 60,000 foot buildings was built expressly for medical and other healthcare services, according to the medical center. “There were several spec buildings just completed on 5th Street,” Mlynar said. “They were built because of a wave in the medical microeconomy up here. The approach is regional; it’s not just for Palmdale. They’re expecting to reach Santa Clarita and Lancaster. The buildings were completed and sold and are occupied by four different medical facilities.” A demolition and reconstruction project is planned for 10th West and Technology Drive, as well. And the Oasis Medical Campus facility is expected to break ground soon. It will house everything from new offices for doctors to wellness, physical therapy and rehab operations. It’s a 420,000 square foot development that will “bring some name brands to Palmdale,” Mlynar said. Unitis Contractor Supply, a wholesale distributor of construction and industrial supplies and building materials, just opened in January to serve construction, government, manufacturing, and industrial accounts. There are two Unitis locations in San Diego County, but the Palmdale location will serve Los Angeles County. The Palmdale Aerospace Academy on Palmdale Blvd. and 35th Street East is breaking ground in April, and the Antelope Valley College is planning rehab work and expansion. The city also has a hybrid power plant planned for construction that it sold to the Summit Power Group. They’re reconfiguring it to be a breaker plant-backfill when renewables are no longer producing. It’s

■ A new shopping center on West Rancho Vista Blvd. in Palmdale, future home to Aldi’s grocery store, built by the Tone Development Corp. Firm of Lancaster. Courtesy photo

a power plant that can fire up quickly and get energy back out to the grid, Mlynar said. And there’s a 600 acre parcel they hope to break ground by year-end that is getting a lot interest from companies seriously looking at the property. On the retail front, the Transplants Brewing Company is one of two breweries that also opened in Palmdale, focusing on “hoppy” west coast ales and creative specialties. Work is just about completed on a free-standing Rancho Vista project that will house retailers, eateries and a Dunn-Edwards Paints store. The Antelope Valley mall, located in Palmdale, is pretty much backfilled now at the once empty spaces at the mall, Mlynar said. Four to five new retailers are yet expected, but it’s too soon to announce, he said. One is a possible destination restaurant. There is also a new retail center built by Santa Clarita contractor, Intertex. On Palmdale Blvd., the center is housing auto parts retailers like O’Reilly’s. And two hotels, an Embassy Suites and Element Hotel by Westin, have completed their grading, with a Home2 Suites by Hilton coming to the market, as well. Enterprise Rental Car is rehabbing the old Baker’s Square. A tractor supply company is going in at 40th East and Palmdale Blvd. A CarMax dealer is also breaking ground this year, Blackburn said. Plus, some pretty big manufacturers land in Palmdale, she said, because the city has available land and there is very little land left farther south. The Northrop Grumman contract is going to hasten those deals, she predicts. “As for a lot of our workforce, we can say to residents, ‘Hey, here’s your life back,’” Mlynar said, referring to the number of people who live in Palmdale but commute to the Santa Clarita and San Fernando valleys. ■

SCVEDC recognizes the leadership shaping our local economy.

Dale Donohoe Member Board of Directors

DALE DONOHOE has been married to his

lovely wife Tamara for the last 27 years. Together they have four children: Beau, Morgan, Jordan and Chad. Dale was raised in Santa Clarita and went through the local school system. He takes pride in making meaningful contributions that benefit the city and its residents. He founded Intertex General Contractors, Inc. in 1984 and has become one of the largest general contractors and commercial developers in the area, with projects valuing over $1,000,000,000 to date, bringing jobs and benefits to the local community. Mr. Donohoe’s leadership skills also benefit his community. He has served as a former Board Member of the following organizations: The SCV Boys and Girls Club; the SCV Child & Family Center and the American Heart Association. He currently serves as a Board Member for Henry Mayo Newhall Hospital and the SCVEDC. Through personal and corporate donations he continues to support many Santa Clarita non-profit organizations.

Regional leadership for a regional economy.

www.stillgolden.org

SANTA CLARITA VALLEY BUSINESS JOURNAL

APRIL 2016

SCV VOICES

First Impressions of a Property Serve as a Welcome Mat By Gordon Miller, CEO General Pavement Management

ﬁrst impression doesn’t solely pertain to meeting other people. Houseguests have a ﬁrst impression of a friend’s home, consumers of a shopping center, and homebuyers of a potential neighborhood. Many property owners focus their attention on property upgrades like new exterior paint color and updated landscaping. Often, pavement, one of the most critical

components of a property, is overlooked. For businesses looking to retain and attract new consumers, curb appeal is of utmost importance. A parking lot is the welcome mat into your business, but when pavement fades from black to gray, parking space lines disappear, and potholes ﬁll the parking lot, the property appears neglected and undesirable to potential visitors. An unsightly lot can result in uncomfortable sentiment towards your shopping center and the corresponding businesses. For residential neighborhoods with

private streets, potential buyers judge the neighborhood’s curb appeal and ﬁnancial stability by their appearance. Faded, heavily cracked streets with a patchwork quilt of repairs throughout may indicate a poorly managed or ﬁnancially struggling association. Ultimately, it is a detriment to property values. Not only is battered and broken pavement displeasing to the eye, it is also a liability. Proper maintenance of concrete and asphalt pavement is a property owner’s responsibility. In the event of damage to a

vehicle or injury caused by neglected pavement, property owners can be held liable. With proper maintenance every 3 to 5 years, pavement will look refreshed, functional, and beautiful, and liability risk will be mitigated. It only takes seven seconds for a person to make their ﬁrst impression, an impression that can last for years to come. With proper pavement maintenance, you too can ensure that the welcome mat for customers, homebuyers and guests is always up to par. ■

AAA

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Continued from page 1 said a spokesperson for the insurance group. The AAA members’ branch for customers will continue to operate on Valencia Blvd. There is no change for Auto Club members. “We’re just planning for the future,” said Jeff Spring. “A number of members are buying insurance; we’re growing and increasing every year and want to make sure we’re ready for that growth.” AAA had been looking for a new home for around six months, said broker Mark Esses of CA Realty Group, who together with broker Keith Kleinman represented the tenant. “They wanted to stay close to where they were located,” Esses said. “It’s a 10-year lease at the new location.” KB Homes formerly occupied the space but moved out of the building in 2008, subleasing a portion of the space to a real estate firm, which then vacated the space in 2010. It has been vacant since. Colliers was asked to represent the business park in May 2014, Fenenbock said. “A lot of AAA’s employees live out here and so ideally they wanted to remain in the SCV,” Fenenbock said. “But because of the lack of larger blocks of office space being available, that was a challenge. The opportunities in the SCV are few.” While Summit at Valencia business park has more space available, this lease represented the largest space available, he said. There is still just over 40,000 square feet available in the park’s two other buildings, ranging in size from 1,850 square feet to 11,500 square feet. While the location of the business park at the Castaic Junction, sitting in the apex of the I-5 freeway and State Route 126 off The Old Road, isn’t perfect in terms of connections to major SCV surface streets, it is a good deal because the trio of buildings offers Class A office space. “It’s one of the most economically priced buildings in Valencia and we’re seeing more and more tenants. The location determines a lower rent, but it’s great for those who don’t need strong visibility or have a lot of visitors,” Fenenbock said. “One of the attractions of this park is that it competes very well in terms of image and Class A space.” The office space market was one of the hardest hit areas of commercial real estate during the recession, resulting in high vacancy rates, but now there are limited options for large blocks of office space in the SCV, he said. “For tenants looking for space less than 5,000 square feet, there are quite a few more options,” Fenenbock said. “But, now that the market is healthier and with fewer blocks of large spaces available, tenants looking for more than 5,000 square feet have limited options.” ■

APRIL 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

Economists: No hints of a recession I n the absence of a crystal ball, economists at the Santa Clarita Economic Outlook Conference Thursday said key economic measurements do not point to a recession occurring anytime soon. But if anything is hindering growth locally, it has been the absence of new construction – residential and commercial – in the Santa Clarita Valley, according to Mark Schniepp, director of the California Economic Forecast. “Don’t pack up the recession bags yet,” Schniepp said. “We just don’t see it.” As for the risk of the United States slipping into another recessionary period, Mark Vitner, senior economist for Wells Fargo, pegged the risk at somewhere between 23 and 25 percent – a number he deemed to be very low risk. The lowest the risk of recession ever gets is 15 percent, he said. Also, due to over-production, oil prices have most likely not yet bottomed out, with Vitner predicting that the price of oil will fall to less than $20 a barrel by mid-year. “Continue to look for economic growth of 2 percent this year,” he said. Despite the fact that many people still reserve a somewhat pessimistic perspective of the recovery, the economists pointed to ongoing job growth, wage increases that began in the fourth quarter of 2012, steadily increasing home prices and interest rates still near record lows, the smallest household debt in a generation, stock market highs last year, and flush corporate bank accounts as signs that the economy is still healthy. As for California’s and Santa Clarita’s unemployment rate, Schniepp said the jobless rate alone is not the full measure of a healthy labor force. “The true gauge is when employers are having trouble finding the right people to fill jobs, which is the situation employers are in today,” he said. “We’re back at the point where if you can fog a mirror, you can get a job,” Schniepp said. In a conference packed wall to wall with attendees, an interactive query tool allowed people to text replies to questions which punctuated the three-hour event – assembling and displaying instantaneous responses on screens at the front of the conference. Responses like “fabulous” and “great” were the leading one-word answers conference participants gave when asked to describe their outlook for business in the coming year. “To the economists in the room, I hope you took note,” said Holly Schroeder, president and CEO of the Santa Clarita Valley Economic Development Corp. as she invited Schniepp to address the local economy.

Santa Clarita The Santa Clarita Valley is following much the same recovery path as California economically. But job creation is affected by the lack of existing office space, industrial building, and new and affordable housing, Schniepp said. In addition to the lasting effect the recession had, the price of land and building costs, coupled with myriad growth measures such as the California Environmental Quality Act, pockets of community resistance, and government regulations have led to relatively little new construction in the

■ Holly Schroeder introduces the Economic Development Council’s plan for expanding business here in Santa Clarita at the Economic Outlook Conference at the Hyatt in Valencia. Photo by Katharine Lotze

SCV during the past eight years. Restrictive building situations have had “unintended consequences,” and Schniepp cited the delays in getting the masterplanned Newhall Ranch community off the ground as one example with housing. The shortage of housing drives prices up, undermining affordable housing options; restricts the ability of families to live in the same community; makes it more difficult for firms to attract skilled employees locally; and forces residents to commute for work, adding more traffic on the freeways. “Housing controls constrain economic growth,” he said. Schniepp also pointed to data showing traffic on Valencia Blvd. to have reached an all-time high by 2014; housing prices to have shot up 34 percent over the past three years; and apartment rents to be at an alltime high, having increased 16 percent over the past three years. And the virtual lack of new office, retail and industrial building over the last eight years has created one of the tightest markets in the entire state with industrial vacancy rates at 1.5 percent. “As a result, tens of thousands of people are on the I-5 commuting to work each day,” Schniepp said. “The jobs should be (located) here, and they would be if we were building.” That scenario could become even more dire. With several years of population growth running at 4 to 5 percent per year, he said, the population in the Santa Clarita Valley should reach 315,000 in the next five years, he said. ■ This story first published in The Signal newspaper on March 11, 2016. Written by Jana Adkins, Business Editor.

SCVEDC recognizes the leadership shaping our local economy.

Ken Wiseman Member Board of Directors

KEN WISEMAN is CEO and co-owner of AMS Fulfillment and oversees multiple Distribution Centers in the Valencia Commerce Center which currently employs over 350 people. Of these, approximately 18 are developmentally disabled adults. Ken has a long history of supporting those with special needs; in the 1980s, Ken worked on the Connecticut Governor’s Committee on the hiring of individuals with disabilities. He started his career with a teaching degree, and a graduate degree towards teaching Special Education, and in 1991 earned an MBA from the University of Hartford. Ken is President of the SCV Sheriff’s Foundation, and an active volunteer on the SCV Search & Rescue Team. He was named a “Los Angeles County Volunteer of the Year” in 2008. He also sits on the Board of the SCV Economic Development Corporation, and is actively involved with several local, not-forprofit community organizations. Ken, along with his wife BettyLou, has proudly resided in Santa Clarita for the past 17 years. Regional leadership for a regional economy.

www.stillgolden.org

SANTA CLARITA VALLEY BUSINESS JOURNAL

APRIL 2016

SPECIAL REPORT: WINE INDUSTRY California’s Wine Industry Bene¿ts the State and Nation ◗ Produces $51.8 billion in economic value for California. ◗ Generates $125.3 billion for the U.S. economy. ◗ Creates 309,000 jobs in California and a total 875,000 jobs nationwide. ◗ Pays $10.1 billion in wages in California and a total $25.2 billion nationwide. ◗ Makes $13 billion in state and federal tax payments. ◗ Attracts 19.7 million tourists

California Wine and Wineries Offer Intangible Bene¿ts to Communities:

Number of Bonded Wineries

2687 Nearly all family-owned, Up 233% from 807 wineries in 1990

◗ Enhance the quality of life. ◗ Promote farming and winemaking

Number of California Grape Growers California Wine Sales to the U.S.

practices that are socially and environmentally responsible. ◗ Offer cultural attractions such as and museums. ◗ Support local retailers,

$18.9 billion in 2007

Share of U.S. Wine Market

63% by value Two out of three bottles sold in the U.S. are California wines

U.S. Wine Exports

$951 million winery revenues 2007

(95% from California)

Up 594% from $137 million in 1990

50 million cases to 125 countries Up 317% from 12 million cases in 1990

Winegrape Acres

◗ Build pride for rural communities.

California.

◗ Bring positive visibility to

527,000 Though vineyards cover less than 1%

◗ Preserve open space and provide scenic pastoral landscapes.

192 million cases in 2007

Retail Value of California Wine in the U.S.

restaurants, hotels and other businesses.

4,600

Up 21% from 156 million cases in 1990

music, festivals, theater, gardens

annually to all regions of

◗ Generates wine-related tourism

California Wine Industry Pro¿le1

of the state’s terrain

Tons Harvested of Winegrapes

3.2 million

Farm Gate Value of Winegrapes

$1.82 billion

Source: 1 Wine Institute and MKF Research LLC.

California and the U.S. worldwide.

expenditures of $2 billion in California. ◗ Gives $115 million in annual charitable contributions from California wineries. Source: Wine Institute

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SANTA CLARITA VALLEY BUSINESS JOURNAL

SPECIAL REPORT: WINE INDUSTRY WINE INDUSTRY Continued from page 7 Heiserman, sales and marketing director for Reyes Winery. “Why let residents leave the valley and go to Santa Barbara or other parts of the state on wine tours when there are over 100 tasting rooms, or vineyards, or wineries in the greater county region?”she asked. For the economic health of the region and the wine industry – it should be promoted to keep tourism and sales taxes local, not send the money to neighboring counties.

Alonso Family Vineyards A group of wine producers first began appealing to the county 14 or 15 years ago, Alonso said. Between costly conditional use permits, annual inspection fees, equipment that’s not needed or practical – on top of federal and state regulations – it’s an added layer of regulation. And conditional use permits can be revoked every ten years, forcing wine growers to jump back through the same hoops they went through to get up and running after investing all that time and money in a small business, he said. While permits may generate revenue for the county, they really amount to lost revenue opportunities, he said. The spending that would be generated from wine sales, tourism, labor wages and more would far exceed that of the permits. The wine industry could be a very successful micro-economy in the county, Alonso pointed out, if only it were helped to flourish and not crushed by regulation. Last year Alonso approached Rosalind Wayman with Supervisor Antonovich’s office

the process of winemaking. The high alcohol content in wine combined with the fermenting process destroys any pathogens or bacteria in the process, he said. There’s an industry that’s taking off out here with a lot of good wines being made by people who have to produce their wines in crush facilities, and store them, in specially approved plants outside of Los Angeles County because the rules are so burdensome inside the county that wine makers don’t have access to local resources. And, “I’ve never seen a cow make some wine,” Hemmert said, referring to wineries being classiﬁed as a food or dairy plant. “When you think about wine making – the small French, Spanish and U.S. wineries started small and grew,” Hemmert said. “But it’s a rich man’s game in L.A. County because of the regulations and cost. It’s killing the wine industry.” But, after years of effort, the winemakers ﬁnally got a receptive audience with someone who listened to the logic of the very frustrated vintners. And slowly, changes are being put in place. Anything a person would ingest is considered food in L.A. County, said Freddie Agyin, Environmental Health Services Manager for the county. That’s why wineries fell under food and milk by county code. While it still does, applying food processing requirements to the industry are hopefully about to change. “We looked at the industry and did an assessment,” Agyin said. “We considered everything that went into making wine or beer and asked what the difference was; we asked why a brewery was exempt and not a winemaking

We pprom promote the viticulture ourselves in this county, but it’s been a difficult process. To promote wine in this region of Los Angeles County requires the help of cities like Santa Clarita and Palmdale to promote the industry as a destination.” – Robert Reyes, Reyes Winery, Agua Dulce in Santa Clarita. From there, the local vintners were able to meet with one of the higher-ups at the health department, who finally agreed to review the regulations and look at changing some of the regulations. “Wine has been drunk since the dawn of civilization; it’s not a danger to anyone’s health, it even has proven health benefits,” Alonso said. A member of a loosely formed group of vintners, Alonso has campaigned along with others in the Santa Clarita Valley to change regulations that don’t make sense in their industry, and all of their efforts may be about to pay off.

Dinner and a dream There is a glimmer of hope, winemaker Hemmert said. The health department changed the head of their department; the original head had been unfriendly to the industry. After meeting with the new head, reviews of the industry began in 2014. Later the local winemakers met with an ofﬁcial at Le Chêne one night for dinner and explained how arcane the regulations are; so unﬁtting for

facility. We decided a winery should be no different.” So, currently his department is in the process of exempting wineries as well, he said. That means,they would not need to meet the costly plan check requirements. In doing his research, Agyin found only two counties who placed oversight of the wineries in Southern California under the health department – one being Los Angeles and the second being Orange County. The department felt conﬁdent, by the very nature of how wineries operate, that they could exempt wineries as well as breweries, ending a two-tiered system that has been in place for decades. “Anything we can do to make the public safe and work with our partners to not only protect the public but to be fair, is important,” Agyin said. “That’s why we conducted extensive reviews.” With new regulations drafted, Agyin’s department will present its recommendations to the L.A. County Board of Supervisors for review approval. Among them, wine crushing facilities will be treated similar to breweries,

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

and will no longer have to undergo plan check approvals or annual inspections. Wine storage facilities, however, will still need a permit just as breweries are required to secure one. The goal, he said, is to have the new regulations become effective July 1, the start of the county’s ﬁscal year. And in an effort to be consistent with other statewide counties, wineries are no longer being inspected as if they were processing food or milk, said a spokesperson for the health department. However, if they store wine, permits would still be required. And that poses a

problem, Lemley said, as that permit currently requires many of the same unnecessary pieces of equipment they had to install, such as the three-compartment sinks. “Taking wine out of the particular category that is imposing all sorts of extra requirements that make no sense for wine is good,” said Holly Schroeder, president and CEO with the Santa Clarita Valley Economic Development Corp. “The cottage wine industry in SCV could get a big boost by changes in classiﬁcations and regulations that would recognize the uniqueness of these facilities.” ■

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SANTA CLARITA VALLEY BUSINESS JOURNAL

APRIL 2016

Tribute:

ALFRED E. MANN Investor and Philanthropist 1925 – 2016 Alfred E. Mann, a beloved philanthropist and entrepreneur who was a pioneer in the biomedical, aerospace and pharmaceuticals ﬁelds, died Feb. 25, 2016. He founded multiple companies in his lifetime, but more so his personal support and funds helped to inspire ﬁrms to save and enhance people’s lives. Santa Clarita is home to many companies he helped to launch, as well as the Mann Biomedical Park which he purchased in 2002. The following are tributes from Mann’s colleagues, former and current.

Al Ma Mann was a unique pioneer whose contributions profoundly impacted thousands of lives and his legacy will impact many more. At Second Sight, we are honored to have worked alongside such a remarkable individual. The world is a little darker without his presence, but his spirit will live on in every blind person who is brought back into the light by our products.” – Dr. Robert Greenberg, Chairman of Second Sight, Sylmar

Al Ma Mann was a great man a man of action, not just j words. Al was a kind gentleman (in the truest sense of the word), caring, empathetic, loyal and tenacious. He treated everyone with the same dignity and respect no matter the person’s station in life. Al had a great sense of humor and loved to laugh he had a deep, contagious laugh. His work and the work of the companies he started and supported have improved (and continue to improve) the lives of thousands and thousands of people around the globe. This was his passion, his mission and life work. Al’s grace and style set the culture and tone for the numerous organizations he created, especially AMF. And, Al’s enthusiasm for aggressive, meaningful science was infectious. Al was consumed with creating solutions for unmet or poorly met medical needs it is not a coincidence that this is AMF’s mission.” – David Hankin, CEO, Alfred Mann Foundation, Santa Clarita

Al was the most amazing man I ever met. He was absolutely l brilliant, but that was only the start of his many amazing attributes. He was admittedly a very successful entrepreneur, but the least motivated by money than anyone I ever met. He had a sincere and profound interest in helping people and making the world a better place. He had a lot of success changing peoples’ lives when he developed the first rechargeable pacemaker, allowing patients to avoid traumatic replacement surgery every 1824 months. Well into his 60s, when most peoples’ careers were coming to an end, Al’s was just getting started in the medical space fields. He constantly saw unmet medical needs all around them and resolved to find solutions. Money was never a result to Al, but rather a means to an end. He had no qualms about putting whatever he made into one endeavor to work it in the next one, leaving little for himself. He was tireless and more persistent, even when faced with considerable obstacles, than anyone I have ever known. I have lost a man who was by turns a mentor, a friend, and a surrogate father, depending on the circumstances. The world is a lesser place without him.” – Matt Pfeffer, CEO, MannKind Corp., Santa Clarita

Alffred Mann was an amazing visionary in the Alfred ﬁeldd off biomedical research. His contributions ﬁ to humanity will be felt for generations to come. We are honored to own the biomedical park that bears his name.” – Dale Donohoe, owner, Mann Biomedical Park, Santa Clarita

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SANTA CLARITA VALLEY BUSINESS JOURNAL

I ccame ame to know Al Mann six years ago when I began my tenure as General Counsel for the h Al M Mann Foundation. I always knew Al to be a genuinely kind, loving and humble man. He was a very smart engineer and an astute businessman, a combination that is not often seen. In comments I made to the staff at AMF, I pointed out that throughout his life he took on epic challenges – hearing loss, limb loss, loss of sight, paralysis, diabetes – each one a mountain to be climbed in its own way. Some he succeeded at better than others, but what I always found remarkable was his persistence; with most of us, just one of those highly successful victories enjoyed by him would have been enough to make us feel as if we’d won the lottery and perhaps decide to take it easy. But not Al Mann – when one success had been logged, he went right on to the next challenge, driven by a fire within to do more and more and more and help more and more people instead of simply enjoying the benefits of his success. Very seldom in history has a single person had such a profound, direct impact in a single technological area – medical devices – and had such a beneficial impact on the quality of life for hundreds of thousands, if not millions of people.”

Alfred Mann was a pioneer and proliﬁc contributor to the development of medical technology and therapeutic treatments. His decades of work led to healthcare innovations that help many people worldwide. As a founder of Advanced Bionics, Mr. Mann helped develop cochlear implant technology that improves lives by restoring the sense of hearing. AB sends our condolences to Mr. Mann’s family and friends.”

– John Petrovich, CEO, Medallion Therapeutics, Santa Clarita

I hhave ave worked closely with Al for many years and just recently met with him to review all the great progress we are making at Bioness to fulﬁll his mission to advance the state of Physical Medicine and Rehabilitation. Al Mann contributed more to the development of medical devices than any single individual in history and pioneered the ﬁeld of neuromodulation. He was a world recognized expert in diabetes management and saved thousands of lives with his breakthroughs in insulin delivery systems. In an unassuming and mild mannered way, Al dedicated his life to inventing products that became businesses that later evolved into multibillion dollar industries. His contribution to inventing and advancing medical devices is unparalleled. On a personal note, I will miss Al very much. He has left a permanent impact on the world and I am honored to have been able to work closely with such a kind man. I doubt I will ever meet someone like Al again in my life, but it’s my hope that many will follow in his footsteps.” – Todd Cushman, President, Bioness, Santa Clarita

– James Robinson, Managing Director and VP of Operations for Advanced Bionics LLC, Santa Clarita

Al Ma Mann’s body of work ddeveloping l medical technologies for those with heart disease, diabetes, deafness, and pain separates him from other entrepreneurs over the last 50 years. He was a person of immense talent, rare persistence, and true gentleness for those on his team.” – Jeff Greiner, Founder and CEO, Valencia Technologies and former Operational Leader of Advanced Bionics, Santa Clarita

■ Alfred E. Mann poses with his wife Claude Mann, left, and daughter Cassandra Mann at the third annual Alfred Mann Foundation Innovation and Inspiration Gala in Beverly Hills. He was 90. His death was announced by MannKind Corp., where Mann served as chairman of the Valencia office. AP photo.

Al Mann was a great visionary and scientific pioneer, and much of his innovation and philanthropy was directed toward addressing unmet clinical needs. His inspiration and work in neuromodulation, among many other disciplines, lives on today and has helped provide hundreds of thousands of patients worldwide with relief from chronic pain. Boston Scientific appreciates his dedication and contributions to humanity in advancing science that improves lives.” – Maulik Nanavaty, Sr. V.P. and President and President of Neuromodulation, Boston Scientific Corp., Santa Clarita

Having pioneered technologies and founded companies that provide hearing for the deaf and vision for the blind and that improve the lives of people suffering from diabetes and heart disease, Al Mann’s contributions to humanity are monumental. He was blessed with a drive and brilliance, and will continue to stand as an inspiration to all of us in the med-tech industry.” – Anthony Arnold, CEO, Setpoint Medical and formerly with Advanced Bionics, Santa Clarita

SANTA CLARITA VALLEY BUSINESS JOURNAL

APRIL 2016

State’s Film Program Reaping Early Results

Hospital’s Foundation Appoints New Board Members

eed to shut a freeway down to film? The California Film Commission makes it happen, and they do so about eight times per year as part of their ongoing effort to protect the film industry, said the executive director at the Economic Outlook Conference in Santa Clarita on Thursday. And the efforts are paying off. Alluding to Hollywood’s historic industry, the birthplace of motion pictures, Executive Director Amy Lemisch refers to it as “our heritage” in terms of the state’s efforts to protect the industry. It’s the fifth largest industry in Southern California, and the base of highly skilled crews. “In the last 10 to 15 years, competition for the industry ramped up exponentially,” Lemisch told a packed crowd at the event produced by the SCV Economic Development Corp. “We’ve been impacted very heavily by runaway production. The competition is global, and it has hurt small businesses and production crews (employees).” In 2009, the state began fighting to get its homegrown industry operating back in California again. And last year, the state tripled the incentive dollars of the tax credit program, which will see $330 million worth of tax credits available in the next fiscal year. The result is that five TV shows are returning to California, the state’s film office announced this week. In terms of cash for state coffers, the industry was responsible for generating $5.35 billion in revenue during the past eight years of the tax credit program. The new tax incentive program has already generated $1.68 billion in direct spending and $660 million in paychecks in the first year, Lemisch said. It isn’t the only state vying for the industry, though. “The majority of U.S. states now have an incentive program,” she said. “Louisiana and Georgia offer very lucrative incentives.” However, it remains to be seen whether those states are just throwing money at the industry or actually producing increased revenues. “California’s incentive program applies to below-the-line spending. Incentives are applied to the nuts and bolts of a production; what it costs to produce a movie or a show and pay crews, excluding

INDUSTRIAL

Continued from page 1 industrial park to be built in the Santa Clarita Valley in a decade. The first phase is expected to be completed in the first quarter of 2017. Sitting on the hills overlooking a portion of the valley, adjacent to the Valencia Commerce Center off Witherspoon Parkway, the IAC Center will ultimately offer

■ The Executive Director of the California Film Commission, Amy Lemisch, talks about the film industry incentives in California and the industry’s presence in Santa Clarita during a speech at the Economic Outlook Conference at the Hyatt in Valencia. Photo by Katharine Lotze

high-salaried actors,” Lemisch said. “Georgia pays based on actors’ salaries, too. We don’t believe it’s sustainable, and we’re watching programs like that.” The film industry in California creates 170,000 jobs and produces $30 billion in spending, of which $15 billion is in the form of wages to the crews, generating $1.5 billion in tax revenues – some of which is returned to local governments such as Santa Clarita. “Santa Clarita has become quite a production hub for filming.” Lemisch said. “It has a great film office and very diverse backdrops.” To make her point, Lemisch showed a photo from the Disney film, “Saving Mr. Banks,” portraying a family in the Australian Outback region. But the photo was shot in Santa Clarita, Lemisch said. Indoor scenes were also filmed at the Avenue Scott Stages in the Valencia Industrial Center. “The Santa Clarita Film Office has provided $340,000 in refunds to (film) productions since the program began back in 2009,” she said. “It has the infrastructure to support the film industry with film studios and 10-plus movie ranches, plus Disney’s Golden Oaks Ranch with two urban backlot streets.” Growth has come, in part, by word-ofmouth because the “industry talks a lot,” she said. There isn’t much more the city needs to do to attract filming. “I think Santa Clarita is pretty aggressive in getting a lot of production,” Lemisch said. “Most production executives are pretty aware of what you do out here.” ■ This story first published in The Signal newspaper March 12. Written by Jana Adkins, Business Editor.

1.3 million square feet of warehouse space that has been in dire need in the region. Vacancy rates have remained at record lows as the recession brought construction nearly to a halt, yet the lack of new building put a stranglehold on some SCV businesses who continued to expand – and for other companies choosing Santa Clarita as their new home. “We are excited to be approaching our vertical construction start date and are

By SCVBJ Staff enry Mayo Newhall Hospital Foundation appointed three new directors to its 2016 Board of Directors: Nick Mitchell, Holly Schroeder and Myles McNamara. Mitchell is the corporate counsel at Logix Federal Credit Union; Schroeder is the CEO and president of the SCV Economic Development Corp.; and McNamara is the president and owner of Comfort Keepers. “We are very grateful to have these ■ Holly Schroeder three, committed individuals join our Board of Directors,” Foundation President Marlee Lauffer said in a statement. “They bring with them valuable experience and we’re sure that they will serve as great ambassadors for the hospital to the Santa Clarita Valley as we continue to build for the health of the community.” Mitchell, a resident of Santa Clarita for 30 years, has volunteered for a number of non-profit and charitable organizations. His experience with Henry Mayo inspired him to serve when his mom diagnosed and treated with stage IV cancer in 2014. The level of care by hospital staff ■ Myles Macnamara impressed him. “The hospital is something all of us will need at some point in our lives. I believe it’s important that we can access high quality healthcare here in Santa Clarita, without having to leave the valley to find the services we need,” he said. “Henry Mayo is providing that care, and the Foundation fills a critical role by providing funding for continuous improvement and expansion of those needed services.” Schroeder has lived in Santa Clarita since 2005, and has more than 20 years of management and executive experience with private sector, government, and non■ Nick Mitchell profit organizations. She sees her role with the hospital as a natural fit – she comes since 1998, providing in-home care for from a family of doctors; both of her sisresidents in the Santa Clarita and San Ferters and brother-in-law are physicians. nando Valley for the last 15 years. While “As a board member, my goal is to he has also been a longtime supporter of help the hospital grow and to be a leader Henry Mayo, McNamara also credits in the healthcare field,” she said. “It’s an important institution in the Santa Clari- Henry Mayo for saving is life after a nearta Valley. It’s unique in this day and age fatal accident two years ago. “After my accident I wanted to step it that we still have a community-owned up by bringing awareness of the commuhospital and that is very special and a nity of the great things going on over there great value for our Valley. We want to put that asset to the best possible use to at the hospital with patient care,” he said. Once I stayed there as a patient it gave me serve our residents.” McNamara has lived Santa Clarita a different perspective.” ■■

seeing great interest in the project,” said Michael Perlmutter, vice president, leasing for IAC. “The IAC Commerce Center will offer the most state of the art buildings in North Los Angeles County and be an employment hub for thousands.” Brokers Craig Peters and Doug Sonderegger, both executive vice presidents with CBRE, are representing the property. While build-to-suits are an option at the park, initial construction under Phase I

includes nine speculative buildings ranging in sizes from 93,600 to 216,320 square feet. At the time of the November 2014 groundbreaking, sources said the lack of new space had caught some local companies in a bind when expanding, causing one company to leave the area, another to lose a major client, and others to opt for regions outside the SCV when looking to relocate. ■ Written by Jana Adkins, SCVBJ Editor■

APRIL 2016

HOLLYWOOD Continued from page 1 designed it and we found a great way to keep it alive. We repped the building from 1989 until six months ago when a developer bought it. The Herald was a flagship for us.” Hollywood Locations also just acquired management of the Avenue Scott Stages from SCV Locations in the Valencia Industrial Center, Brosnan said. Partners in a downtown studio they own in Los Angeles also owned the Valencia building and asked them to manage filming at it, as well. “Saving Mr. Banks” the autobiographical movie – starring Tom Hanks, Emma Thompson and Paul Giamatti, about Walt Disney’s efforts to secure the right to make the 1964 movie “Mary Poppins” – filmed there. Hollywood Locations also represents three other commercial properties in the Santa Clarita business park, including one each on Avenue Crocker, Tourney Pointe, and Avenue Stanford. “We just took over Avenue Scott Stages,” Brosnan said. “Our partners in the project, Bristol Group, asked us if we would help them with Avenue Scott Stages. They also own our Los Angeles Center Studios.” The firm also manages the tricky logistics of filming at a couple of busy Santa Clarita shopping centers. “We were able to pull off a two-day shoot with “Justified” at the Valencia Crossroads center a while back,” Brosnan said. “They did a scene that took them all the way from Corner Bakery to the parking lot between Kohl’s and Whole Foods. We also had “The Mentalist” use the area around the Classic Designs Jewelry store toward the end of their last season, too.”

Deal Making The Avenue Scott Stages deal occurred when Hollywood Locations took over the old Union headquarters located near the Bonaventure Hotel. The movie location company then built eight 18,000 square foot stages in a joint venture to co-develop and co-own the operation in August 1999. Located just west of the 110 Harbor freeway in downtown, Los Angeles Center Studios spans 20 acres between 5th, Bixel, Boylston, and Maryland streets off Beaudry Avenue. Brosnan said production companies love it because they can “soak up the energy

SANTA CLARITA VALLEY BUSINESS JOURNAL

of downtown,” but being west of the freeway gives creative folks a buffer from the downtown grind. And the studio’s internal courtyard campus is large enough to film stunts and car chase scenes in. That prime property, located in the newly reinvigorated city center has also definitely increased in value over time, Brosnan said. “It’s a beautiful state-of-the art facility,” Brosnan said. “We went to the major studios like Paramount and Universal and asked them, ‘If you had to do it again, what would you do differently?’ We built stages for audience-rated sitcoms with features like soundproofing, to stages with a big enough footprint to handle major feature films.” Building two successful operations, however, was a journey that began in the mid-80s and ended in Valencia.

community college to establish his residency, so he began his education at College of the Canyons. Living with his brother, Brosnan worked at the old Hughes grocery market in Granary Square while he got his degree in communications from California State University, Northridge. And eventually, he met his wife, a Hart High grad. He never really wanted to leave Santa Clarita after that, he said. But, the Los Angeles-based firm his brother and he built continued growing. “We’ve had a great history,” Brosnan said. “We started to sign up and enter into agreements with most of downtown high-rise skyline buildings including Brookfield, the largest downtown L.A. landlord. We handled the B of A plaza, U.S. Bank Towers, and institutional properties like Loyola Marymount and Los Angeles Union Station.” Hollywood Locations also has a contract with the Los Angeles County Metropolitan Transportation Authority, managing filming in the subways, buses, and trains, for it, he said. What gives the company an edge over other location companies, Brosnan said, is renting out production offices at their studios to film companies, which allows them to hear about proj– Pete Brosnan, Senior Vice President ects very early on, giving them the and CFO, Hollywood Locations jump on helping with location filming needs, as well. Film Roots As for the Hearst building, that story is Brosnan first moved out to Los Angeles somewhat akin to a tear-jerker ending in a from Chicago in 1986. movie. “My brother Brian Brosnan was the Location Manager for “Murder She Wrote” New Ventures Acquiring management of Avenue Scott starring Angela Lansbury, and for the movie “Terms of Endearment” starring Shirley Ma- Stages in Valencia is a big perk for Brosnan, allowing him to work closer to home when cLaine and Jack Nicholson,” Brosnan said. the scouts visit the facility or an active film “He realized there was a need for a company production is onsite. that specialized in commercial locations. Be“It’s a great facility five minutes from fore that, it was only residential.” home,” he said. “And it helps to enhance the At the time Brian, 14 years older than film industry in Santa Clarita.” Pete, lived in the Hollywood Hills where As for the Herald Examiner building in Pete would stay with him when he came out Los Angeles, the landmark will be converted for summer vacations. When Pete decided to into mixed-use space to attract creative ofrelocate and attend college, his brother gave fice users and ground floor retail users. New him the green light to stay with him. Only York developer Georgetown Co. is partnerone trick, brother Brian told him. Brian had ing with the Hearst Corp. on the $40 million moved to Valencia. project to redevelop the building, including So Peter Brosnan moved out to Valen- restoration of the lobby and Spanish-Moorcia and began applying for colleges. UCLA ish façade, while opening up the street-level encouraged him to first begin school at a arched windows that were enclosed decades

W lob We lobbied the Hearst Corp. for their h i old Los Angeles building in 1989 when it went out of business. The Herald was a ﬂagship for us.”

JRL

800-743-1851 877-991-6999 Breaker inventory available at jrlelectricsupplyinc.com ago during a 10-year strike against the paper, reported the Los Angeles Times. Steve Hearst, vice president of the Hearst Corp. and great grandson of William Randolph Hearst, told the Times that the building has “been asleep a long time. It's time to wake her up.” And given that, the building also needs a good polishing after sitting vacant nearly 30 years. “The Hearsts finally entered into a development deal about six months ago and we no longer represent it for filming,” Brosnan said of the historic building that launched Hollywood Locations. “The film industry cried a bit of a tear because the Herald Examiner building won’t be there anymore.” ■

Planning Commission Approves New Parking Structure As Part Of Kaiser Project at Former Borax Facility

ver complaints from some nearby residents, members of the Santa Clarita Planning Commission unanimously approved a proposal from Kaiser Permanente this week to demolish an existing parking garage on Tourney Road and replace it with a larger, seven-level structure. The site in question is at the former Borax facility. The project approved would take a wrecking ball to a four-level, 299-space parking structure at 26877 Tourney Road in Valencia. In its place, Kaiser would build a sevenlevel parking structure that would have up to 567 spaces. The new garage would be roughly

80 feet tall — about 30 feet taller than the existing structure, city documents say. A new garage is needed, officials said, to provide the additional parking required for what Kaiser Permanente calls the “Santa Clarita Specialty Medical Offices.” The health care provider purchased the former Borax offices at 26877 Tourney Road in 2012 and is seeking to convert those into an approximately 115,600-square-foot medical office. “With this approval, Kaiser Permanente is a step closer to our goal of completing the Santa Clarita Specialty Medical Offices and providing members who live and work

in Santa Clarita with better access to highquality, affordable specialty care services closer to home,” reads a statement from Kaiser Wednesday. Kaiser Permanente already has a medical ofﬁce building at 27107 Tourney Road. There are currently no plans to replace that building, but Kaiser is looking to relocate its urgent care services to be near the proposed new garage. The project originally went before the Planning Commission in January, but it was delayed after the Fernandeno Tataviam Band of Mission Indians requested an ofﬁcial

consultation to see if there were any potential areas of cultural significance on the site. After assessing the project, the Fernandeno Tataviam concluded the project did not require any tribal monitoring or inspections, according to city documents. The project also includes the removal of two existing oak trees. The Planning Commission has final say on the matter unless it is appealed to the City Council. ■ This is an abbreviated version of the story which first published in The Signal newspaper March 2, 2016.

SANTA CLARITA VALLEY BUSINESS JOURNAL

WATFORD

Continued from page 1 Meanwhile, the cost of doing business continues to rise. Located in the center of Santa Clarita, the company – owned and operated by Daniel O’Brien - operates in spacious and modern quarters. The staff is dedicated, hard-working and ready to be part of a company on an upward trajectory of growth. With new services, more moves and long-term and short-term storage rentals, there is strong upside potential. At present, the company does ninety percent of its business in residential moves and 10 percent in commercial business. Adding manpower, space and vehicle capacity is not an issue, but searching for the right kind of clients is a challenge. After reviewing the current situation and the potential for future growth, the following are action steps that were recommended along with a recap of results generated to date for each: First, better planning will yield better results. To this point, the company has not had a formal written business plan. It was recommended that the company start using several tools to more effectively plan and execute growth. For strictly financial planning, QuickBooks (accounting and financial software used by the company) has budgeting and forecasting options and modules. The Strategic Growth Navigator, a one-page planning document, was also provided for use. Results: The company is considering the use of these tools, but no significant progress has been made. Specific goals need to be established in each service area so that the company’s financial future can be better predicted. Research shows that the mere existence and publication of goals have been shown to improve performance. Second, new media matters. Consumers and businesses today use the Internet for education and validation before they purchase. It was recommended that the company website, which is attractive and engaging, be regularly updated with fresh and useful content. That would mean the addition of more blog entries, content from other sources (giving full attribution), more testimonials and video. YouTube

is now the second most used search engine, which is why video matters. Along these same lines, because the consumer target market and the potential business market decision makers are becoming younger, the company was advised to address issues on Yelp. On other social media platforms, the company had a presence which was being regularly updated with new postings. Results: The company has addressed the negative Yelp postings and improved the rating to 4.5 on the 5.0 scale, and is now vigilant on addressing postings there. The company is actively researching outsourcing to potential third party providers to perform this service. Third, the company sends out four or five marketing pieces a year to the current customer database (Thanksgiving or Christmas cards; a postcard promoting storage capabilities, and usually two other flyers), plus occasional emails to the database using Constant Contact. The company has done a good job securing referrals and repeat business, which represents 80 percent of the company’s volume. This information is tracked using QuickBooks. The business model of the residential moving business is a hard one. Moving is not all that common. Only 11 percent of the population moves each year and that number has been declining for demographic and economic reasons. To counter these trends, it was recommended that the company take time to analyze how it could increase its share of commercial/ business moves. Currently, about 10 percent of the company’s revenue comes from these types of moves. The Santa Clarita Valley is a very desirable place for business startup and growth, given the high business taxes of surrounding cities. In addition, the Santa Clarita Valley Economic Development Corporation has targeted specific industry clusters for business attraction to the SCV. Business moves are generally easier and more profitable than residential moves. Budgets are higher and the moves can be done after-business hours, over weekends and on holidays. There is also less emotion involved because the person managing the move from the client side is an employee, not a resident. Residents are much more emotionally involved in how their personal belongings are wrapped, packed, shopped and placed.

APRIL 2016

■ Watford Moving and Storage owner Daniel O’Brien stands in the company’s warehouse, next to wrapped furniture waiting to be packed into a wooden vault storage container. Photo by Katharine Lotze

In addition, meeting human resources managers through PIHRA (Professionals in Human Resources Administration) may be another way to learn about opportunities for upcoming company moves and expansions. Often, human resources professionals either serve as, or supervise, the facilities management function. Results: The company is networking within the business community and at the SCVEDC to see how they can leverage their expertise and increase the volume of business moves in 2016. The PIHRA opportunity has not yet been explored. Fourth, expand the network of residential real estate agents in the desired target areas. The company has indicated that it would prefer to move away from multi-family (apartment) moves, and even smaller residential moves which are not always in the desired proﬁt margin once workers compensation and other expenses are factored in. Ideally, the company would like to have more upscale single family relocations. To help achieve that objective, they have done the preliminary work of identifying speciﬁc zip codes to target. Results: Some progress has been made within the SVC, but only a limited effort has been made outside of the area. The company

understands the need to be more visible with real estate agents and the need to maintain relationships. The company will soon be hosting an event for agents at its facility. Fifth, seek out passive income possibilities. The company has almost unlimited physical space for storage. This opportunity is not limited to storage of household items. Many businesses seek temporary space during busy seasons for short periods of time. Networking within the local business community should be explored. Also, museums are seeking safe, dry and insured space to safely store artwork. That may be another option given the number of museums in the greater Los Angeles area and the closeness of the SCV to them. Results: Under consideration and limited progress to date. Summary: Many companies were battered and bruised by the Great Recession, but that needs to be put in the rear view mirror. New energy, commitment to growth and a sharper focus on expansion by the owner are required to take this company, which has a tremendous upside for growth, to the next stage of proﬁtability. After all of his hard work and efforts, and having a dedicated team standing with him, he deserves a better ﬁnancial return than he has earned so far. ■

VALLEY INDUSTRY & COMMERCE ASSOCIATION

Celebrating a Community SCVBJ Store Homecoming

VICA

Stuart Waldman

or anyone wondering about the importance of a business building brand identity, customer relations and community presence, the recent changes surrounding a local grocery store in the Santa Clarita Valley provide an excellent case study. The Vons store on Bouquet Canyon Road in Saugus briefly changed ownership last June, handing the keys and signage over to a Northwestern chain that had purchased several area stores. There were tears, both from employees and customers. The emotion wasn’t just about job loss or a fear of change. For longtime employees who had started their careers at the store, and even for a few of the younger ones who had been a part of generations whose first job was at Vons, it was a sad ending to a past full of positive customer service experiences. For many customers, it was like watching family members leave. Many drove to other locations to find what they were accustomed to, whether it was pricing, selection or friendly faces.

The sales of the stores were the result of a Federal Trade Commission decision prompted by a concern with fairness and market share; but ironically, the move seemed like it had the opposite effect on pricing and customer service for many who were upset by the change. Because whether it’s the memory of shopping for Halloween candy with your young children, the time an employee could sense your concern without you having to ask, and carried your groceries out to your car; or that time you watched a checker miraculously calm an upset child in a checkout line -- these timeless supermarket moments and experiences stay with us. And, perhaps unsurprisingly, when the Vons changed names and ownership, there was fear, concern and even some anger. While several of the friendly, neighborhood faces that customers have relied upon for years changed, many also became upset about a rise in prices that seemed to be prevalent at the new chain. People’s reactions were natural. Many

take for granted the incredibly important ties we have to, not just our food, but the meal – and the experience of everything from preparation to table setting. But what was somewhat surprising was the speed with which people’s reactions to the departure of their grocery store had a real effect. What the FTC and legislators can’t always take into account is the intangible connection that businesses create within the communities in which they operate. Within just a few months, the grocer that had purchased this Vons location, as well as the Pavilions in the area, was forced to ﬁle bankruptcy, leaving dozens, again, in search of work and many, many more in search of the kind of local grocer they once had on Bouquet. And another unfortunate side effect, as reported in The Signal, was that the oncepopular store location sat vacant for months, “forcing residents living and working near the city center to drive farther distances to reach neighboring supermarkets.” While Santa Clarita Valley residents reacted to the perceived changes with their feet, ﬁnding a Vons or Albertsons location they felt they

knew and trusted, the Washington state-based chain that had purchased the SCV stores eventually put them up for auction, and the Vons store in Saugus was re-purchased by the more familiar name that had been there before. Which means that the whole situation has come full circle, and Santa Clarita Valley residents once again can access all of the grocery store options they knew and loved, with two Albertsons and four Vons locations now fully operational. We’d like to join the chorus of voices in welcoming Vons back to the community. The mission of the Valley Industry & Commerce Association (VICA) is to enhance the economic vitality of the greater San Fernando Valley region by advocating for a better business climate and quality of life. Visit www.vica. com for more information. ■ The mission of the Valley Industry & Commerce Association (VICA) is to enhance the economic vitality of the greater San Fernando Valley region by advocating for a better business climate and quality of life. Visit www.vica.com for more information.

APRIL 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

VIA Awards Season Just Beginning

VIA Luncheon Planning Calendar 2016

and accomplishments of its members. While nominations will not officially open until late July or early August, it’s never too soon to start thinking about those individuals and members of distinction deserving in one of three award categories.

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, April 19 Representatives from Henry Mayo Newhall Hospital preview their new health and fitness center.

ollywood doesn’t hold all the glitz and glamour in the Southland when it comes to awards season. Celebrating its 35th year, the Valley Industry Association is readying the nomination pool for the 2016 VIA Awards to be presented at the VIA BASH gala on October 28, 2016 at the Hyatt Regency Valencia. Each year, VIA celebrates the diversity

VIA VOLUNTEER OF THE YEAR This is an individual affiliated with VIA and is a member in good standing for a minimum of two years and has demonstrated strong support of the organization through committee involvement or chairmanship, member recruitment, fundraising and/or the creation of increased visibility for the organization. This member will have been an active member of one or more VIA

Committees for no less than two years, and have made major volunteer contributions to the organization.

VIA BUSINESS OF THE YEAR This cornerstone VIA member business will have been affiliated with VIA for no less than five years and demonstrated consistent support not only for the organization but to the business community and the Santa Clarita Valley as a whole.

RISING STAR A VIA member for no less than 12 months, this company will have shown substantial new growth and visibility through the development and launch of a new product or service, significant increases in job

Connecting to Success Call for Facilitators Welcome to New VIA Members! VIA is growing and we’re proud to add these new members to our organization. Welcome to Santa Clarita’s premier business and industry connection!

Northwestern Mutual

Harry Avetisyan 21800 Oxnard Street, Suite 800 Woodland Hills, CA 91367 (818) 887-9191 harry.avetisyan@nm.com

Who:

Need up to 100 business professionals to volunteer as facilitators for Connecting to Success, a workplace readiness business conference for high school students

What:

Facilitate breakout sessions for high school junior class students from all area high schools in the curriculum areas of Building Your Image for Success, Ethics: Doing the Right Thing or Money Smarts

When:

Volunteers to help facilitate the program are needed for the following Thursdays (choose one or more dates): Oct. 13, 2016 Oct. 27, 2016 Nov. 10, 2016

Where:

Grace Conference Center, 22833 Copper Hill Drive, Santa Clarita, CA 91350

Why:

Perhaps one of the easiest and most rewarding ways to give back and help shape the incoming workforce is to become a facilitator in one of VIA’s signature Connecting to Success series this Fall. The annual event delivers a high impact workforce preparation program for students. Each year, students benefit from time spent with working professionals as they prepare to interview for their first job or ready themselves for college applications the following year. They are also able to grasp real-world issues that may challenge their ethics, and receive guidance on how to handle money.

A-1 Party

Kim Kurowski 26893 Bouquet Canyon Road Santa Clarita, CA 91350 661-297-2275 kim_kurowski@hotmail.com

Sign-A-Rama

Lee Thompson 24730 Avenue Tibbitts, #130 Valencia, CA 91355 (661) 260-3522 lee@signarama-santaclarita.com

SCV Cleaners

Antoinette Naber 26547 Golden Valley Road Santa Clarita, CA 91350 (661) 255-3678 scvcleaners@yahoo.com

Pramik Entertainment

John Pramik P.O. Box 801945 Santa Clarita, CA 91380 (661) 702-8928 john@pramikentertainment.com

Ameriprise Financial

Justin Duncombe 5850 Canoga Avenue #120 Woodland Hills, CA 91367 (818) 592-3373 Justin.duncombe@ampf.com

Contact: Kathy Norris (661) 294-8088 or Kathy@via.org

Advance Sneak Peek: City Council Candidates Forum

he furor of election season is not lost on VIA as the Nov. 8, 2016 ticket will impact Santa Clarita with city elections held for the first time on the traditionally heavy November ballot. Soon after the candidate filing period closes,

VIA will host a City Council Candidates Forum as part of its monthly program series on Tuesday, August 16 starting at 11:45 a.m. The forum will provide an excellent opportunity to listen to each candidate and learn their vision for the city moving forward. ■

SANTA CLARITA VALLEY BUSINESS JOURNAL

APRIL 2016

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

Business Tools That Help Companies Figure Out the True Cost of Offshoring

here are many reasons for American manufacturers to reevaluate offshoring and consider reshoring. Companies are increasingly recognizing that costs, risks and strategic impacts previously ignored are large enough to overcome the shrinking emerging market wage advantages. They are seeing the benefits of proximity when the home market is the U.S., still the world’s largest. Today, many U.S. manufacturers are reevaluating their production and sourcing locations and are taking a closer look at the benefits of reshoring. Some of the most commonly cited advantages include higher product quality, shorter delivery times, rising offshore wages, lower inventory and the ability to be more responsive to changing customer demands. The number of jobs brought to the U.S. from offshore, according to the Reshoring Initiative data is 248,000 from January 2010 to December 31 of 2015.

Access Costs Everywhere (ACE) Tool Assess Costs Everywhere (ACE) provides manufacturers with the top reasons for investing and sourcing in the United States. With its analytic framework, links to public and private resources, and case studies, ACE is now available to help businesses assess total costs more accurately and enable informed decision-making. The ACE tool is based on the premise that a business should not decide where to establish manufacturing facilities based on the current labor cost alone. Instead, the outsourcing decision should be made after careful consideration of an array of factors such as labor cost growth trends, the cost of operating an business abroad, freight costs and shipping time, inventory holding cost, special financing

arrangement, product quality concerns, intellectual property protection or lack thereof, costs to comply with local red tapes, as well as overall political and security risks. When considering all factors, the United States actually offers many competitive advantages, from a strong business climate to a highly-skilled and productive workforce. Additionally, companies that are expanding their workforce within the United States or bringing jobs to the United States may be eligible for assistance from the Commerce Department's Manufacturing Extension Partnership, Commercial Service offices, SelectUSA, Economic Development Administration, or other agencies. The ACE tool is one of multiple activities being carried out by the Department of Commerce to encourage businesses to bring production back to the United States or expand their operations here. The Department encourages re-shoring by creating incentives, securing access to markets for U.S. exports, providing financial and technical support for companies to grow and expand, and improving education and training opportunities to develop a skilled workforce. To learn more about the tool, please visit http://acetool.commerce.gov/

Total Cost of Ownership Estimator Many companies make sourcing decisions based solely on manufacturing prices, often resulting in a 20 to 30 percent miscalculation of actual offshoring costs. The Total Cost of Ownership (TCO) Estimator is a free online tool that helps companies account for all relevant factors — overhead, balance sheet, risks, corporate strategy and other external and internal business considerations — to determine the true total cost of ownership. There are also inputs for

factors such as political instability risk, inflation, and intellectual property risk to ensure that the data computed is as accurate as possible by taking into consideration these variables. Recognized by the U.S. Commerce Department, the Total Cost of Ownership Estimator is designed for businesses of all sizes and allows users to determine which sources best meet their company’s profitability and strategic objectives. Company users include supply chain managers, accounting, manufacturing management, industrial engineering, strategic planning, and line management. Benefits of the Total Cost of Ownership Estimator include customized calculations based on each company’s unique data, flexibility for users who may skip values that are not essential, ability to make direct comparisons by providing a total cost for each source, complete consideration of up to 30 cost

Econo Watch Santa Clarita Valley

Source: Santa Clarita Valley Economic Development Corporation

Q4 ’15

Q3 ’15

Q4 ’15 Sq Ft

Commercial Vacancy Rates Office Space

10.20%

12.20%

582,345

Industrial Space

2.70%

2.50%

530,150

Retail Space

5.60%

4.90%

696,152

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

32.20%

19.00%

N/A

Industrial Space - as a % of Vacancy

29.31%

50.90%

N/A

Retail Space - as a % of Vacancy

38.49%

30.11%

N/A

Jan ‘16

Dec ‘15

Jan ’15

Commercial/Industrial Building Permits

Residential Building Permits

Building Permits

and risk factors, forward-looking projection based on the user’s forecast of wage and currency changes, and automatic calculation of freight rates for 17 countries and explanations and references for Input factors. Last but not the least, the tool is free to use. Once you input your unique data into the calculator, you will receive your total cost of ownership analysis complete with calculations of 30 cost factors for each source, an accumulation of all costs into cost categories, the TCO for each source, line charts showing each source’s current price and TCO and a 5-year TCO forecast, line charts showing your cumulative cost by category for each source. For more information about this tool, please visit http://www.reshorenow.org/ tco-estimator/ If you have any questions about how to use these two tools, please contact SCVEDC at chenyao@scvedc.org or 661 288 4407 ■

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)

Feb ‘16 9.05 1.03 0.56 21.88 47.96 8 50.86 46.95 41.74

Jan ’16 10.05 1 1.43 22.85 48.13 8 50.27 49.19 42.15

% Change -5.47% -3.00% -43.17% -5.80% -0.35% 0.00% 1.17% -4.55% -0.97%

Unemployment Rates* Santa Clarita Palmdale Lancaster Glendale LA County State

Jan ‘16 Dec ’15 % Change 5.4% 5.3% 1.89% 8.0% 7.8% 2.56% 6.7% 6.5% 3.08% 5.8% 5.6% 3.57% 5.9% 5.8% 1.72% 5.8% 5.8% 0.00%

*Due to the late release of unemployment rates, February unemployment rates are not available.

APRIL 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

March Milestone Members 25+ Years Green Thumb Garden Center AAA Of California Santa Clarita Concessions Anitech Systems, Inc. Bartlein & Company, Inc. Exclusive Sedan Service Keep It Self Storage

20+ Years Assistance League of Santa Clarita Facey Medical Group

15 + Years CBC Cleaning & Restoration

2016 Chamber of Commerce off to a great start

our 2016 SCV Chamber of commerce is off to a great start with the 92nd Recognition and Installation Dinner and the Santa Colorita Run under our belt, we are positioned well to focus on issues affecting you and your business. We have formed a new Chamber subgroup called our Chairman’s Circle which will be concentrating on these issues and communicating them to Sacramento. This new group is made up a large cross section of our top Santa Clarita Valley businesses. We would like to thank Chiquita Canyon-John Musella, JSB Development- Jim Backer, AAA Companies-Brian Higgins, Newhall Land- Sandy Sanchez, Princess Cruises- Brian O’Conner and Signal Multimedia- Russ Briley for being part of this team. If you would like to join this group, please contact Terri Crain at the Chamber for all the details.

On March 14th members of this newly formed team will be accompanying your President and CEO Terri Crain to Sacramento to discuss the many topics that are critical to the businesses of the Valley with members of your state legislature. On March 4th we met with California Assemblyman Scott Wilk. He gave us a very educational and informative update on the landscape and climate in Sacramento. He explained to us the new bills for consideration had just been released and we will be meeting with other members of the legislature as well as Assemblyman Wilk shortly to review the bills that are importance to your business in Santa Clarita. We have also set up a meeting with the CalChamber during our trip to Sacramento to address those bills and other issues that potentially affect California businesses. Topics covering potential changes

Dance Studio 84 Princess Cruises Spirit Holding, Inc. Special Olympics Santa Clarita Preferred Glass & Windows William S. Hart UHSD Realty Executives Santa Clarita Salt Creek Grill

10+ Years Logix Federal Credit Union Valencia Promenade Kim Thomson – Re/Max of Santa Clarita SCV Commercial Real Estate Services Galpin of Santa Clarita – Lincoln, Mazda, Subaru Advanced Imaging Center Calminsense Hypnotherapy

5+ Years SCV Mayor’s Comm. for Emplt of Individuals w/Disabilities SCV Concierge SOS Entertainment Myers, Widders, Gibson, Jones, & Feingold, LLP Ullman Investments, LTD Old Republic Title Avison Young Southern California, Ltd. The SCV Beacon Legal Shield & Identity Theft Shield Santa Clarita Technology & Career Development Center Whitening Lightning Inc. Old Town Newhall Ice Eternity Day Spa Inc.

Ribbon Cuttings

in the wage and hour laws and minimum wage will be on the top of our agenda. We at the Santa Clarita Valley Chamber of Commerce are dedicated to keeping your business concerns at the forefront and together look for solutions to make the business climate much better for all of us. With this new group as well as all of our board we intend to be very vocal and maintain engaged with Sacramento and continue to work with and through our local elected officials. As always we value your feedback and encourage you to give us your thoughts and concerns from your perspective as a local business. In the next Santa Clarita Business Journal we will give a synopsis of these meetings and a look at some of the pending bills that we feel would be of interest and concern to businesses in the Santa Clarita Valley. ■

SANTA CLARITA VALLEY BUSINESS JOURNAL

APRIL 2016

Commercial, Industrial & Retail Real Estate Retail Buildings

Sq.Ft.

Sale/Lease

23329 Lyons Avenue

900, 3,600, 7,600

Lease

$1.65 SF/MO/NNN

Price

10,300

Lease

$1.25 SF/MO/NNN

Old Orchard Plaza

23154 Valencia Boulevard Valencia Mart

25830-25848 McBean Parkway

1,999 - 2,800

Lease

$2.50-$3.00 SF/MO/NNN

1,200

Lease

$1.25 SF/MO/NNN

Granary Square

21515 Soledad Canyon Road Golden Oak Plaza

26477-26557 Golden Valley Road

$2.75 SF/MO/NNN

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

1,020 – 2,191

Lease

$1.85 SF/MO/NNN

27202, 27220 & 27240 Turnberry

Lease

$1.65 SF/MO/MG

900 – 3,250

Lease

$1.00 - $1.60 SF/MO/NNN

1,000

Lease

$1.25 SF/MO/Gross

1,350 – 1,907

Lease

$2.35 SF/MO/NNN

Riverview Plaza

25269 The Old Road

1,300 – 2,442

Lease

$1.50 SF/MO/NNN

Sunset Pointe Plaza

24003 Newhall Ranch Road

3,053

Sub-Lease

$3.35 SF/MO/NNN

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

28207- 313 Newhall Ranch Rd.

1,275 - 8,090

Lease

$1.95 - $12.90 SF/MO/NNN

1,195 - 1,825

Lease

$2.75 SF/M0/NNN

Highridge Crossing

27923 – 59 Seco Canyon Rd.

1,500 - 1,600

Lease

$2.50 SF/M0/NNN

54,000

Lease

Negotiable

Seco Canyon Village

27095 McBean Parkway The Promenade John Cserkuti (NAI Capital) 661-705-3551

19045 Golden Valley Road. #115

4,040

Sub-Lease

$2.25 SF/MO/NNN

1,063 - 6,015

Lease

$1.50 SF/MO/NNN

4,350

Lease

$2.50 SF/MO/NNN

1,700 – 7,000 997 – 8,565 660 – 2,337

Lease Lease Lease

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

4,040

Lease

$2.25 SF/MO/NNN

The Vine at Castaic

23754 Valencia Boulevard Chris Munyon (NAI Capital) 661-705-3556

27630 The Old Road 24300 – 24305 Town Center Drive 24510 Town Center Drive Cody Chiarella (CBRE) 818-502-6730

27430 Golden Valley Yair Haimoff (NAI Capital) 818/742-1659

23922 Summerhill Lane

552 - 4,275

Lease

$2.35 SF/MO/FSG

776 - 6,130

Lease

$2.25 SF/MO/FSG

Valencia Oaks

23929 Valencia Blvd.

767 Lease $2.35 SF/MO/FSG

1,425 - 29,028

25020 - 25061 Avenue Stanford

990 - 4,281

Lease

$1.05-$1.75 SF/MO/FSG

2,810

Lease

$2.50 SF/MO/NNN

24501 Town Center Drive; Suite 103 27413 Tourney Road

1,290 - 3,243

Lease

$2.55 SF/M0/FSG

915- 5,206

Lease

$2.65 - $2.80 SF/M0/FSG

1,187 - 20,000

Lease

$2.75 SF/MO/FSG

1,500 - 8,000

Lease

$2.85 SF/MO/FSG

1,300 - 6,000

Lease

$2.25 SF/MO/NNN

Lease Lease

Negotiable Negotiable

Lease Lease

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

Tourney Business Park

26650 The Old Road Westridge Executive Plaza Richard Ramirez (CBRE) 661-907-4639 The Commons at Valencia Gateway

25350 - 25360 Magic Mountain Parkway Gateway Plaza

24200 Magic Mountain Parkway VTC IV David Solomon (CBRE) 818-907-4628

27201 Tourney Road 982 - 5,032 Lease $2.35 SF/MO/FSG 23030 Lyons Avenue Neiditch Building

170 - 2,362 650

Branson Brinton (SCV Commercial) 818-414-7657

25161 Rye Canyon Road Mann Biomedical Park

Building #1 Building #2 Build-to-Suits also available

14,292 1,814

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

25115 Avenue Stanford

709 - 10,600

Lease

$1.75-$1.85 SF/MO/FSG

1,230 – 8,474

Lease

$2.65 SF/MO/FSG

Valencia Park Executive Center

28470, 28480, 28490 Ave. Stanford

Lease

$2.75 SF/MO/NNN

23734 Valencia Boulevard

2,900

Lease

$1.75 SF/MO/NNN

23838 Valencia Boulevard

1,512

Lease

$3.50 SF/MO/NNN

25078 Peachland Avenue

1,523 -1,860

Lease

$1.95 SF/MO/FSG + J

988-2,674

Lease

$2.50 SF/MO/NNN

1,000

Lease

$1.95 SF/MO/MG + E + J

1,205 - 8,944

Lease

$1.45 SF/MO/FSG + J

420 - 4,000

Lease

$1.10 SF/MO/NNN

1,842

Lease

$2.05 SF/MO/MG

540 576

Lease Lease

$2.00 SF/MO/MG $2.15 SF/MO/MG

720

Lease

$2.00 SF/MO/MG

948

Lease

$2.00 SF/MO/MG

Lease Lease Lease

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

Valencia Financial Center Atrium Medical Building Peachland Medical Arts

23502- 23504 Lyons Avenue 1,051

Lease

$3.25 SF/MO/NNN

1,005-1,830

Lease

$1.95 SF/MO/MG

Lyons Plaza

23542- 23560 Lyons Avenue Plaza Posada Cameron Gray (NAI Capital) 661-705-3569

24961The Old Road

Office/Commercial Buildings

Matt Sreden (DAUM Commercial) 661-705-3552

Sq. Ft. 1,500

Sale/Lease

Price

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

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

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

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

Sale Lease Lease Lease Lease Lease

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

1,685

Lease

$1.75 - $2.00 SF/MO/MG

Lease

$1.25 SF/M0/MG

Yair Haimoff (NAI Capital) 818-742-1659

22620 Market Street

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

28455 Livingston Avenue

$2.15 SF/MO/FSG

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

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

20605 Soledad Canyon Road

Lease

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

1,000

Baywood at Bridgeport Kevin Fenenbock (Colliers Int.) 661/253-5204

25065 – 25067 Peachland

$2.20-$2.55 SF/MO/FSG

$2.85 SF/MO/NNN

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

24125 Baywood Lane

Lease

Plaza Del Rancho

24021 Newhall Ranch Road

1, 758 - 22,919

1,195

Valencia Village

27544 Newhall Ranch Road

$2.15 SF/MO/MG

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

Summerhill Village

27560 Newhall Ranch Road

Lease

Valencia Executive Plaza

The Plaza at Golden Valley

31675-31783 Castaic Road

23822 Valencia Blvd.

25152 - 25154 Springfield Court

Gateway Village

28112 - 36 Newhall Ranch Rd.

736 - 2,208

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

San Fernando Plaza

26865 – 26889 Sierra Highway

$1.80 SF/MO/FSG+

Sunset Pointe Plaza

Lease

Wayman Court

23638 Newhall Avenue

25129 The Old Road

1,479 – 2,074

500 – 6,000

Price

Lease

Tourney Pointe

$2.00 SF/MO/NNN

Old Town Newhall Properties

23120 – 23130 Lyons Avenue

27200 Tourney Rd.

Lease

Sutter Point Plaza Patti Kutschko (Daum Commercial) 661-670-2003

Sale/Lease

Valencia Atrium

2,250

The Plaza Golden Valley

24254 – 24409 Main Street

28494 Westinghouse Pl.

$2.50 SF/MO/NNN

Canyon Square

700 & 900

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

Lease

18597 – 18607 Soledad Canyon Road

27737 Bouquet Canyon Road

28001 Smyth Drive

1,022

Centre Pointe Marketplace

19923 – 19931 Golden Point

Office/Commercial Buildings (cont.) Sq. Ft.

5,600

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

2405 Chestnut Street

The Chestnut Building Jeff Lui (SCV Commercial Real Estate Services) 661-478-5227

22800 Lyons Avenue The Tanner Building

24303 Walnut Street

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

27502 Avenue Scott 28546 Constellation Road 27413 Tourney Road

3,893 5,734 1,290

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

24840 Avenue Stanford, #300 Richard Ramirez (CBRE) 661- 907-4639

6,187

Lease

Negotiable

APRIL 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

Commercial, Industrial & Retail Real Estate Office/ Medical Buildings 25775 McBean Parkway 25880 Tournament Road

Sq. Ft.

Sale/Lease

1,201 – 6,682 1,043 – 4,559

Lease Lease

Price $2.76 SF/MO/NNN Negotiable

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

25050 Peachland Avenue 8

00 – 4,000

Lease

$2.20 SF/MO/NNN

Patti Kutschko (Daum Commercial) 661- 670-2003 Matt Sreden (Daum Commercial) 661 705-3552

Land (Commercial, Industrial & Retail) SWC Golden Valley Rd./Centre Pt. Pkwy.

Acres Sale 1.5

Sale

$27.17 SF ($2.3M)

149.0 (Com.)

Sale

$0.61 SF ($3.9M)

1.7 ac.

Sale

$22.50 SF

Randy Cude (NAI) 661-705-3553

SEC Newhall Ranch Rd. & Rye Canyon Rd.

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

SWC Copperhill Drive & Rio Norte

8.65

Sale

$22 SF

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

Placerita Canyon Road

9.9

Sale

$7.42 SF/$3.2M

38.26 148.75 14.5 38.30 10,743

Sale Sale Sale Sale Sale

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

1.19 1.90 2.29 2.67 3.86 4.96 6.15

Sale Sale Sale Sale Sale Sale Sale

Industrial Buildings

Sq. Ft.

Sale/Lease

27778 Avenue Hopkins

39,474

Lease

$21 SF/$1.1M $23 SF/$1.9M $21 SF/$2.1M $21 SF/$2.5M $21 SF/$3.5M $21 SF/$4.5M $21 SF/$5.6M

Price $0.58 SF/MO/NNN

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

5,404

Sale

$215 SF/$1.1M

Matt Sreden (NAI Capital) 661-755-6654

25334 Avenue Stanford 28305 Constellation Road 28338 Constellation Road 26450 – 25470 Ruether Avenue 28452 Constellation Road 28506 Constellation Road 28486 Westinghouse Place #110 26340 Diamond Place

17,775 6,766 3,320 2,089 3,180 4,595 7.513 2,154

Sale Sale Lease Lease Lease Lease Lease Lease

$123 SF ($2.2M) $185 SF($1.3M) $0.90 to $1.15 SF/MO/NNN $0.99 SF/MO/NNN $0.85 SF/MO/NNN $0.89 SF/MO/NNN $0.89 SF/MO/NNN $1.50 SF/MO/NNN

13,045

Lease

$0.75 SF/MO/NNN

17,000

Lease

$0.75 SF/MO/MG

14,536

Lease

$0.79 SF/MO/NNN

7,584

Lease

$0.70 SF/MO/NNN

Yair Haimoff (NAI Capital) 818-742-1659

24820 Avenue Tibbitts

Pamela Verner (SCV Commercial) 661-714-5271

29023 The Old Road Richard Ramirez (CBRE) 818-907-4639

27525 Newhall Ranch Rd.; Unit 9 Nigel Stout (JLL) 818-531-9685

28478 Westinghouse Place 8,284 25615 Hercules 17,455 27795 Avenue Hopkins 10,214 26074 Avenue Hall 1,561 - 3,131 26943-26951 Ruether Ave. 2,025 28430 Witherspoon Pkwy. 37,766 25040 Avenue Tibbits 1,440 28212 Kelly Johnson Pky. 1,244 25215 – 25217 Rye Canyon Road 24,048 - 12,048 28368 Constellation Rd., Bldg C, Unit 360 4,017 26074 Avenue Hall, Unit #5 3,131 Unit #12 3,082 Unit #21 3,177

Lease Lease Lease Lease Lease Sale/Lease Lease Sale Lease Sale Lease Lease Lease

$0.63 SF/MD/MG $0.59 SF/MO/IG $0.55 SF/MO/NNN $0.90-$1.00 SF/MO/IG $0.79 SF/MO/IG $139.00/$0.59 SF/MO/IG $0.88 SF/MO/MG $397.00 SF; $495,000 $0.75 SF/MO/NNN $825,000 $1.05 SF/MO/IG $0.95 SF/MO/IG $1.05 SF/MO/IG

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

28334 Industry Drive

35,310

Lease

$0.59 SF/MO/NNN

116,143 21,147

Lease Sale

$0.58 SF/MO/NNN $135.00 SF

24700 Avenue Rockefeller 50,261 Lease 24730 Avenue Rockefeller 42,960 Lease (Buildings above can be combined for a total of 93,221 SF in space)

$0.57 SF/MO/NNN $0.57 SF/MO/NNN

Matt Dierckman (CBRE) 818-502-6752

28210 N. Avenue Stanford 25060 Avenue Tibbitts

Unit A Unit B Unit C Unit B & C Unit A, B & C

$111.47 SF; $0.55 SF/MO/NNN $115 SF

22,288 22,712 25,325 48,047 70,325

Lease Lease Lease Lease Lease

$0.61 SF/MO/NNN $0.62 SF/MO/NNN $0.62 SF/MO/NNN $0.62 SF/MO/NNN $0.62 SF/MO/NNN

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

28358 Constellation Road, Unit B 28338 Constellation Rd. Unit 920

24971 Avenue Stanford 25159 Avenue Stanford

8 4,984 3,328

Lease Lease

$0.65 SF/MO/NNN $0.76 SF/MO/NNN

20,415

Sale

$135 SF

79,701

Sale

$115.00 SF

21,650 3,480

Lease Sale

$0.79 SF/MO/NNN $210.00 SF

4,790 106 1,584

Sale Lease

$870,000 $1.35 SF/MO/NNN

Todd Lorber (NAI Capital) 818-933-2376

28381 Constellation Road 28446 Constellation Road 28029 Smyth Drive 26635 Valley Center Drive, Unit

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

24922 Anza Drive, Unit F

Craig Peters (CBRE) 818-907-4616

Craig Peters (CBRE) 818-907-4616 • Doug Sonderegger (CBRE) 818-907-4607 • Richard Ramirez (CBRE) 661-907-4639

11,600

Lease

$0.80 SF/MO/IG

146,000 54,060

Sale Lease

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

Nigel Stout (JLL) 818-531-9685

28903 Avenue Paine 28308 Industry Drive 25161 Rye Canyon Loop Mann Biomedical Park Building #61

26037 Huntington Lane

10,000 - 38,465 22,557

Lease $0.60 SF/MO/NNN Sale/Lease $0.63 SF/M0/NNN/$139 SF

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

27911 Franklin Parkway

39,975

Lease

$0.54 SF/MO/NNN

52,260

Lease

$0.65 SF/MO/NNN

Doug Sonderegger (CBRE) 818-907-4607

28650 Braxton

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

28029 Smyth Drive

4,790

Sale

$181 SF/$870,000

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

26858 Ruether Avenue

2,132

Lease

$1.05 SF/MO/MG

Lease

$0.57 SF/MO/NNN

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

24700 – 24730 Avenue Rockefeller

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

26000 Springbrook Avenue #17

25158 Avenue Stanford 44,548 Sale/Lease 26308 Spirit Court 44,944 Sale 28340-28400 Avenue Crocker

Randy Cude (NAI Capital) 661-705-3553

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

28312 Constellation Road

Price

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

Yair Haimoff (NAI Capital) 818-742-1659

SWC Soledad Canyon Rd/Golden Valley Rd Valley Business Center

Sale/Lease

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

Randy Cude (NAI Capital) 661-414-2004

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

Sq. Ft.

Rexford Industrial Center (various combinations)

Price

Nigel Stout (JLL) 818-531-9685

15112 Sierra Highway

Industrial Buildings (cont.)

93,221

Craig Peters (CBRE) 661- 907-4616 Doug Sonderegger (CBRE) 661-907-4607 Richard Ramirez (CBRE) 661- 907-4639

28034 Industry Drive. Unit A

9,973

Lease

$0.79 SF/MO/Gross

10,180

Lease

$0.75 SF/MO/NNN

Doug Sonderegger (CBRE) 818- 907-4607

20711 Centre Pointe Parkway

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

27420 Avenue Scott Unit C &D

68,592

Lease

$0.53 SF/MO/NNN

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

21515 Centre Pointe Parkway

16,773

Sale

$215 SF/$3.6M

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

Future Industrial Projects

Sq. Ft.

Sale/Lease

Price/Availability

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

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

Craig Peters (CBRE) 818-907-4616 • Doug Sonderegger (CBRE) 818-907-4607 • Richard Ramirez (CBRE) 818-907-4639

28608 Hasley Canyon Road

20,499 - 44,162

Lease

TBD

Avalon Business Center JamesEbanks (RealtyAdvisoryGroupInc.) 661-702-8880x12• LaurenEbanks (RealtyAdvisoryGroupInc.) 661-702-8882x18

28528 Industry Drive

42,159

Sale

$134 SF/TBD

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

Future Office Projects

Sq. Ft.

Sale/Lease

27750 North Entertainment Drive

100,000

Lease

Price TBD

Entrada Gateway Center Ryan House (JLL) 818-531-9677 • Dan Sanchez (JLL) 818-531-9682 • Jim Lindvall (JLL) 818-531-9678 Note: Parties interested in properties should contact listing broker or agent for more information. To list here:

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

SANTA CLARITA VALLEY BUSINESS JOURNAL

THE LIST

APRIL 2016

Aerospace and Defense (Ranked by Total Employees)

Company Name

Name

Title

Address

Employees

Woodward Inc

Ted Papenthien

Manager

25200 Rye Canyon Rd , Santa Clarita 91355

738

Aerospace Dynamics International

John Wall

President

25540 Rye Canyon Road, Santa Clarita 91355

583

Wesco Aircraft

Davecastagnola

President & Ceo

27727 Avenue Scott, Valencia 91355

461

Itt Aerospace Corporation

Robert Briggs

Manager

28150 Industry Dr Unit S , Valencia 91355

450

Regent Aerospace Corporation

Reza Soltanian

President

28110 W Harrison Pkwy , Valencia 91355

316

Asc Process Systems

Dave Mason

President

28402 Livingston Ave, Valencia 91355

254

Bayless Engineering & Manufacturing

Earl Bayless

President

26100 Avenue Hall, Santa Clarita 91355

250

Forrest Machining Inc

Joanne Butler

President

27756 Avenue Mentry , Valencia 91355

240

Crissair, Inc.

Mike Alfred

President

28909 Avenue Williams , Valencia 91355

220

B & B Manufacturing

Fredduncan

President

27940 Beale Court, Santa Clarita 91355

215

Triumph Actuation Systems

Bill Boyd

President

28150 Harrison Pkwy , Valencia 91355

200

Kirkhill-Ta Co

Jim Sweeney

President

28065 Franklin Pkwy , Valencia 91355

180

Semco Instruments Inc

Michael G Moore

President

25700 Rye Canyon Rd , Valencia 91355

177

25111 Anza Dr, Valencia 91355

176

Novacap Knowles

Mark Skoog

President

25111 Anza Dr , Valencia 91355

173

Ppg Aero

Barry Gillespie

Chief Executive Officer

24811 Ave Rockefeller , Valencia 91355

160

Del West Engineering Inc

Al Sommer

President

28128 Livingston Ave , Valencia 91355

152

Sgl Technic Inc

Scott Carlton

President

28176 Avenue Stanford , Valencia 91355

145

Classic Wire Cut Company Inc

Brett Bannerman

President

28210 Constellation Rd , Valencia 91355

130

Donaldson Company Inc

Paul Akian

President

26235 Technology Dr , Valencia 91355

130

Lamsco West Inc

Gladden J Baldwin

President

24823 Anza Dr , Santa Clarita 91355

105

Curtiss-Wright Controls

Tom Cuda

Branch Manager

28965 Avenue Penn , Santa Clarita 91355

100

Ta Aerospace

Jim Sweeney

President

28065 Franklin Pkwy , Valencia 91355

100

True Position Technologies Inc

Allen Sumian

President

24900 Avenue Stanford, Valencia 91355

Cicoil Llc

Howard Lind

Managing Member

24960 Avenue Tibbitts, Valencia 91355

Hrd Aero Systems Inc

Tom Salamone

President

25555 Avenue Stanford, Valencia 91355

National Technical Systems Inc

Aaron Cohen

Manager

20970 Centre Pointe Pkwy, Santa Clarita 91350

All American Products

Art Benyasri

President

24901 Avenue Stanford, Valencia 91355

Rah Industries Inc

Ron Hansen

Ceo

24800 Avenue Rockefeller, Valencia 91355

Sunvair Inc

Tim Waschak

Ceo

28079 Avenue Stanford, Valencia 91355

Whitmor Plastic Wire & Cable

Michael Weiss

President

27737 Avenue Hopkins, Santa Clarita 91355

Aero-Design Technology Inc

John Wetzel

President

24908 Avenue Kearny, Santa Clarita 91355

Flight Line Products Inc

Michael Muschenheim

President

28732 Witherspoon Pkwy, Valencia 91355

Galaxy Die And Engineering Inc

Jawahar Saini

President

24910 Avenue Tibbitts, Valencia 91355

Hamby Corporation

Bill L Hamby

President

27704 Avenue Scott, Valencia 91355

Sun Valley Machine Works Inc

John Waschak

President

28079 Avenue Stanford, Valencia 91355

Tri Tek Electronics Inc

Jim Gillson

President

25358 Avenue Stanford, Valencia 91355

Aero Engineering & Mfg Co Cal

Dennis L. Junker

President

28217 Avenue Crocker, Valencia 91355

Air Frame Mfg & Supply Co Inc

Yoshi Kawamura

Ceo & Founder

26135 Technology Dr, Valencia 91355

Paragon Precision Inc

Allan Smith

President

25620 Rye Canyon Rd Ste A, Valencia 91355

Schrey & Sons Mold Co Inc

Walter Schrey

President

24735 Avenue Rockefeller, Valencia 91355

Performance Machine Tech Inc

Dennis Moran

President

25141 Ave. Stanford, Valencia 91355

A & M Electronics Inc

Ron Simpson

President

25018 Avenue Kearny, Valencia 91355

Valley Precision Metal Product

Howard R. Vermillion Jr

President

27771 Avenue Hopkins, Santa Clarita 91355

SOURCE: Santa Clarita Valley Economic Development Corp.

APRIL 2016

SANTA CLARITA VALLEY BUSINESS JOURNAL

THE LIST

Aerospace and Defense (Ranked by Total Employees) Cont.

Company Name

Name

Aircraft Components Repair Co

Roger Meyerstein

Nextpoint Bearing

John Burroughs

Pacific Metal Stampings

Donald Schlotflat

Able Aero Inc

Licia

Aircraft Hinge Inc

Title

Employees

25058 Anza Dr., Santa Clarita 91355

28364 Ave. Crocker, Santa Clarita 91355

President

28415 Witherspoon Pkwy., Valencia 91355

President

25032 Anza Dr , Santa Clarita 91355

Olga Halcomb

President

24930Avenue Tibbitts, Valencia 91355

Applied Companies, Inc.

Betsy Klinger

President & Owner

28020 Avenue Stanford, Valencia 91355

Mp Tool Inc

Eduardo Pimentel

President

29035 The Old Rd # 26, Valencia 91355

Pacific Aerodyne

Ann Seow

Owner

25334 Avenue Stanford, Santa Clarita 91355

Troll Systems Corporation

Michele Scott

President

24950 Anza Dr, Valencia 91355

V P Mfg Inc

Donald Volkmann

Owner

20732 Soledad St # A, Canyon Country 91351

Luran Inc

Terry Decker

President

24927 Avenue Tibbitts, Valencia 91355

Aero Sense Technologies Inc

Sohail Tabrizi

President

26074 Avenue Hall Ste 18, Valencia 91355

Pacific Testing Laboratories

Myong C Shin

President

24950 Avenue Tibbitts, Valencia 91355

Advanced Technology Machining

Joe Howton

Vice President

28210 Avenue Crocker, Valencia 91355

Ameron Global Inc

J Frederick Huckvale

President

28402 Livingston Ave, Valencia 91355

Pacific Air Logistics Inc

Billy J Neighbors

President

26763 Oak Ave, Santa Clarita 91351

Precision Center Aircraft Mfg Inc

Eloi Arias

President

28064 Avenue Stanford, Suite J, Valencia 91355

Montgomery Systems Technology

H Steve Montgomery

President

28402 Livingston Ave., Valencia 91355

Sun Air Parts Inc

Dennis Nobile

President

26007 Huntington Ln Ste 4, Valencia 91355

Adept Fasteners

Gary Young

Owner

28709 Industry Dr., Valencia 91355

Bill Thomas Assoc

Bill Thomas

Owner

25072 Anza Dr., Valencia 91355

Crater Industries Llc

Carol Donaldson

Owner

28827 Industry Dr., Valencia 91355

G4 Aerospace & Mfg

Victor Manuel Castaneda

President

29071 The Old Rd., Valencia 91355

Job Shop Managers

Sanjeev Kapoor

Owner

28966 Hancock Pkwy., Valencia 91355

Koito Aviation Llc

Chitoshi Fujii

President

29069 Avenue Penn., Valencia 91355

Meschkat Precision Machining

Bodo Meschkat

Owner

27555 Avenue Scott, Valencia91355

Morris Precision Products

Beverly Morris

President

26732 Oak Ave Ste C, Santa Clarita 91351

Mp Aerospace Manufacturing Inc

Edwardo Pimentel

President

29035 The Old Rd., Valencia 91355

Ryan Sales Inc

Mark Ryan

President

24540 Desert Ave., Santa Clarita 91321

Onena Tool Co

Irene Onena

Owner

27003 Edgewater Ln 4, Valencia 91355

Atmospheric Systems Corp

Kenneth Howard Underwood

President

26017 Huntington Ln Ste F, Santa Clarita 91355

Fo Engineering Inc

Bob Deller

President

28231 Avenue Crocker, Valencia 91355

Aerospace Manufacturing Inc

Joe Reyes

President

28316 Constellation Road, Santa Clarita 91355

Franmar Manufacturing Inc

Paul Kendera

President

24927 Avenue Tibbitts, Valencia 91355

Hansen Marvin

Marvin Hansen

Owner

25570 Rye Canyon Rd Ste B, Santa Clarita 91355

Pacific Aero Components Inc

David Bill

President

28887 Industry Dr, Valencia 91355

W K Engineering International

Sam Korn

President

25157 Avenue Stanford, Santa Clarita 91355

Apogee Aviation Services Inc

Peter A. Ricciardi

President

28159 Avenue Stanford, Valencia 91355

Cbk Aviation Inc

William Steck

President

28958 Hancock Pkwy., Valencia 91355

Hawk Instruments Inc

Greg Kuric

President

20732 Soledad St Ste J, Santa Clarita 91351

Western Airparts Corporation

Robert E Benjamin

President

28110 Avenue Stanford, Valencia 91355

3-R Sales

John Davis

Owner

26751 Oak Ave., Canyon Country 91351

Aptek Laboratories, Inc.

Joseph Vaccaro

President

28570 Livingston Avenue, Valencia 91355

N/A

Electro Enterprises Inc.

Bill Carrasco

Sales

27965 Smyth Dr. Ste. 102, Valencia 91355

N/A

Hartzell Aerospace

David

President

25395 West Rye Canyon Road, Valencia 91355

N/A

Kapco Global

Mike Boone

Vp Business Development 26501 Summit Circle, Santa Clarita 91350

N/A

L&M Precision

Lorenzo Zavalva

President

N/A

Ahed-Ram

Schmidt

Chairman Of The Board

Address

28210 Avenue Crocker #201, Valencia 91355

SOURCE: Santa Clarita Valley Economic Development Corp.

SANTA CLARITA VALLEY BUSINESS JOURNAL

APRIL 2016

Residential Real Estate Housing Stats - Santa Clarita Valley

SCV Median Home Value SCV Median Condo Value SCV Home Sales SCV Condo Sales SCV Avg. # of Days on Market (SF) SCV Single Family Home Inventory

Feb â&#x20AC;&#x2DC;16

Jan â&#x20AC;&#x2122;16

Feb â&#x20AC;&#x2122;15

530,000 3335,000 136 55 84 443

530,000 306,500 113 55 93 443

490,000 300,000 142 47 82 362

Source: Santa Clarita Valley Economic Development Corporation.

February Sales

Acton New Listings . . . . . . . . . . . . . . .27 Total Active Listings . . . . . . . . .46 New Escrows Closed. . . . . . . . . .5 Median Sale Price . . . . . $409,000

Newhall New Listings . . . . . . . . . . . . . .402 Total Active Listings . . . . . . . . .55 New Escrows Closed. . . . . . . . .18 Median Sale Price . . . . . $445,000

Agua Dulce New Listings . . . . . . . . . . . . . . .11 Total Active Listings . . . . . . . . .29 New Escrows Closed. . . . . . . . . .0 Median Sale Price . . . . . $000,000

Saugus New Listings . . . . . . . . . . . . . . .74 Total Active Listings . . . . . . . . .75 New Escrows Closed. . . . . . . . .39 Median Sale Price . . . . . $470,000

Canyon Country New Listings . . . . . . . . . . . . . . .73 Total Active Listings . . . . . . . .102 New Escrows Closed. . . . . . . . .38 Median Sale Price . . . . . $450,500

Stevenson Ranch New Listings . . . . . . . . . . . . . . . 17 Total Active Listings . . . . . . . . . 24 New Escrows Closed. . . . . . . . . . 7 Median Sale Price . . . . . $749,000

Castaic New Listings . . . . . . . . . . . . . . .21 Total Active Listings . . . . . . . . .36 New Escrows Closed. . . . . . . . .23 Median Sale Price . . . . . $436,000

Valencia New Listings . . . . . . . . . . . . . .106 Total Active Listings . . . . . . . .142 New Escrows Closed. . . . . . . . .61 Median Sale Price . . . . . $455,000 Source: Southland Regional Association of Realtors. Feb. 1 - 29, 2016

Santa Clarita Valleyâ&#x20AC;&#x2122;s Largest Full Service Commercial Real Estate Firm Serving North Los Angeles Now Recruiting Quality Brokers

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For more information, contact:

Yair Haimoff, SIOR Executive Vice President, Branch Manager 27451 Tourney Road, Suite 200 Valencia, CA 91355 (661) 705-3550

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