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BUSINESS JOURNAL
b u s i n e s s e s
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JUNE 2021
VOLUME 6 ■ ISSUE 6
IN PROFILE
An Oakdale mother, grandmother and nurse practitioner by trade is both the hands and the heart behind Cloverland Soap and Candle. PAGE 4
NEWS
Loma Brewing Company and the City of Manteca have hammered out a 55year land lease agreement to allow the Los Gatos brewery to establish a flagship operation in Manteca. PAGE 8
From Gateway to Destination BY SABRA STAFFORD 209 Business Journal
M
erced has long been known as the “gateway to Yosemite” but now, a new momentum is building in the city’s downtown region to take Merced from gateway to destination. The last several years has seen new shops, restaurants, residential apartments, entertainment venues, and a new boutique hotel opening in downtown. These new entities are mixing in with a vibrant art community, the UC Merced Downtown Campus Center, government and business leaders for a downtown resurgence. “I strongly feel that in the next two years people will see a significant change in downtown Merced,” said Merced Mayor Matthew Serratto. The resurgence is being spurred by four key components: private investments, public re-
sources and support, a lively art community, and the return of events. “From a city perspective we have to stimulate the investment from the private side, make the investment on our end and then we have to do our best to put the right structures in place,” Serratto said. The private investment has been led by revitalization projects of The Tioga, The Mainzer and the El Capitan Hotel. The Tioga has been transformed into chic downtown residential apartments that quickly filled up when it opened last year. The amenities include a large mezzanine and community space with pool tables, a kitchen prep station, dining tables, lounge areas, a viewing room, games and art from local artists. Perhaps one of the more enticing details is the entry into The Tioga that replicates the grandeur of what it once was.
“We painstakingly and lovingly brought it back to its original glory,” said Robin Donovan, the managing director of all three properties. “The Tioga was originally a hotel visited by stars and presidents alike.” The arrival of the sign marking the return of The Tioga proved to be a memorable moment in downtown Merced’s transition. “My phone was blowing up,” Donovan laughingly recalled. “Everyone was texting me and sending pictures. It felt like it was the catalyst - the beginning of the change.” Across the street from The Tioga is the Mainzer, an Art Deco theater transformed into a restaurant and entertainment venue. For those who enjoy games, the Mainzer offers a wide variety of options. There’s Skee-Ball, Ping-Pong, Foosball, and special tables with tops ready for games of chess, checkers, Trivial Pursuit and Scrabble.
The Mainzer retained the history and design of the theater. There are two screening areas. The larger space is furnished with tables and chairs and has a stage for live performances and a large screen that will be used for sporting events and other special screenings. “We’re looking forward to having comedy shows and concerts,” Donovan said. The second area is in the mezzanine and is furnished with plush couches and chairs for viewing comfort. “I see this space used for TED talks, documentary screenings and private events,” Donovan said. The restaurant features an upscale menu at affordable price points and sources all food locally. There’s a full bar and a unique beer wall that allows guests to try out some new brews. SEE MERCED, PAGE 8
209 BUSINESS JOURNAL
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JUNE 2021
IN PROFILE
Pandemic brings people to Barnwood Arms BY VINCE REMBULAT 209 Business Journal
PHOTO CONTRIBUTED
From blouses and jeans to dresses for various occasions, California Couture offers work to weekend wear for women of all ages.
Hilmar native opens downtown Turlock boutique BY ANGELINA MARTIN 209 Business Journal
What started as a small website in her dad’s garage has now grown into a fullblown storefront for Hilmar native Stephanie Torres, who recently opened the first brick-and-mortar location for her boutique California Couture in downtown Turlock. Soon after graduating from Hilmar High School in 2014, Torres launched the online version of her boutique at just 20 years old. Thousands of Instagram followers and countless customers from across the country later, in January she received the keys to her first storefront in the downtown core where Cindy’s Doodads used to be. California Couture 2 From blouses and jeans to dresses for various occasions, California Couture offers work to weekend wear for women of all ages (Photo contributed).
“There are so many things that are different from just being online. I love them both equally, but it’s so cool to have all of the clothes hung up. I get to come to work every day and unlock my store,” Torres said. Now instead of shipping off packages throughout the state and country, the new business owner is able to meet customers face to face and help them find styles they love, whether it’s a dress for a bridal shower or a cute top to wear on a date. Thanks to her love of high fashion, Torres settled on the name California
Couture and felt it best described her wide selection of dresses, blouses, jeans and accessories. She’s welcomed longtime customers into her new space who have followed her business online for years, as well as out-of-town visitors and Turlockers alike who are discovering her boutique for the first time. Though she worked in the service industry to fund her business when it was solely online, she’s now working at her boutique full time in what she describes as a leap of faith. “If I’m being honest, I was very nervous and thought, ‘What am I doing?’ I’ve always had that safety blanket of having a full-time
The start of the business day at The Barnwood Arms Company on a May morning was filled with firearms enthusiasts early on. It’s not unusual, according to Paul Mangelos. “We’ve been busy – business has been through the roof,” he said, pointing to the political climate and the COVID-19 pandemic as the possible reasons for that. Paul Mangelos grew up in the business. His father, Joe Mangelos, earned his Federal Firearm License prior to the business opening in 1981. The younger Mangelos was there when the family owned and operated gun store originally operated in an area of his uncle John Mangelos’ Barnwood Restaurant, which was once located near the northbound Highway 99 on/off ramp. The name itself came to be when John and Joe Mangelos used reclaimed wood from some of the old barns, recalled Paul Mangelos. In 1990, Barnwood
209 BUSINESS JOURNAL FILE PHOTO
Donnette Baker of Concord took part in a previous firearms class.
Arms moved to its current location at 120 E. Main St. in Ripon, along the heart of historic downtown. “We have a certified gunsmith with more than 20 years of experience,” said John Mangelos of his nephew, Paul. This full-service gun store also offers all of the popular lines of firearms for shooting and hunting needs. Couple that with the wide selection of gun safes from some of best three manufacturers and accessories. In addition, Barnwood Arms offer up a wide range of shooting supplies, reloading equip-
ment and one of the area’s largest selection of quality optics. Prior to COVID, the onpremises indoor shooting range was a popular destination for shooting enthusiasts from throughout the Central Valley and Bay Area. Included was firearms class for those wheel-chair bound under the direction of Marcelo Rosengarten. But that’s been on hold, at least for now. More information is available at www.thebarnwoodarms.com or Barnwood Arms on Facebook.
Your business your livelihood. Are you getting the protection you deserve?
SEE BOUTIQUE, PAGE 5
California Couture Location: 115 W. Main St. in Turlock; www.californiacoutureboutique.com Hours: 10 a.m. to 6 p.m. Tuesday through Saturday Contact information: 209-250-2880; info. calicouture@gmail.com
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209 BUSINESS JOURNAL
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IN PROFILE
Welcome to El Capitan BY SABRA STAFFORD 209 Business Journal
Like it’s namesake in Yosemite National Park, the El Capitan Hotel has risen up in downtown Merced, offering guests a new level of grandeur and hospitality. “We are thrilled to welcome guests to experience the JdV by Hyatt brand’s inclusive spirit and joydriven service through this new chapter in the hotel’s history,” said Robin Donovan, managing director of El Capitan and Mainzer. “There is so much to discover in Merced from the charm of the town’s classic American Main Street to the surrounding farms and vineyards. We’re opening during a unique time, but El Capitan has been a beacon in this community offering access to comfort and adventure for more than 100 years and that is a tradition we’re excited to expand upon.” El Capitan’s 114-guestrooms, including three one-bedroom suites and nine junior suites, are
spread across the restored Arbor Lane Wing and newly constructed Main Street Wing. El Capitan’s Arbor Lane guestrooms offer whimsical elements including custom wallpaper highlighting local historic landmarks, old-fashioned telephones and record players in each room. In the spirit of connecting guests to the local neighborhood, the hotel also offers a continually updated library of vinyl from Tigers and Daggers Records, located one block away from the hotel. Every architectural and design element inside the hotel was carefully planned out with the overall goal of making guests feel comfortable. The design took inspiration from Merced’s history with the railroads and celebrates the beauty and splendor of both Yosemite and the Central Valley. Creations from local artists that pay homage to the agricultural and cultural traditions of the region adds the finishing touches to accommodations.
El Capitan offers three distinct dining experiences that all call upon the bounty of the Central Valley, a region famous for producing more than a quarter of the nation’s food. The casually chic Native Son, named for the famed climbing route in Yosemite National Park, is a casual 30-seat outlet that transitions from a café during the day to a free-spirited, community bar in the evening. The open-air Courtyard entices guests with a relaxed dining and drinking experience centered around a custom bar set in a retrofitted horse trailer. Bathed in the California sunshine, The Courtyard is perfect for an afternoon cocktail or light bite. Rainbird, the property’s signature restaurant, will debut in summer 2021 with destination-worthy dining from Chef Quentin Garcia highlighting Merced’s agricultural abundance to produce meals that reflect the unique flavors of the location. Bobby’s Market, located
in El Capitan, will open in late-spring 2021 with a curated Central Valley artisan experience and a tastefully updated version of the classic mercantile. Featuring a selection of locally made products, travel essentials and handmade goods the market will also include a “build-yourown” trail mix bar with locally grown nuts and fruits. El Capitan offers more than 3,000 square feet of dedicated meeting and event spaces, spread across three indoor and one outdoor space. The Courtyard is a unique and flexible outdoor venue for weddings and social events in the California sunshine. The Sentinel is an upscale room that can be used for events with a dining option. Joe’s Boardroom offers users a space with the latest technology and the Drawing Room is a meeting space designed to inspire creativity. For guests wanting to workout, El Capitan has a fitness center with Peloton equipment. Just steps from the hotel, Mainzer, a recently renovated and reopened theatre dating back to the early 1920s, offers live per-
formances, movies and entertainment coupled with a lively bar and restaurant.
To book a room at El Capitan visit www.hyatt. com or call (209) 383-1234.
HELPING VALLEY BUSINESS GROW
DeGraff Construction
Loretelli Farms
GreenWorks Janitorial
Dust Bowl Brewing Co.
Now more than ever, let’s support LOCAL businesses in any way we can.
www.ovcb.com
Brewer Family Dentistry
Pinnacle Health
DA Wood Construction
Davis Guest Home
209 BUSINESS JOURNAL
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JUNE 2021
IN PROFILE
Nurse turns longtime hobby into cottage business BY TERESA HAMMOND 209 Business Journal
Betty Larrabee isn’t looking to retire on her handmade creations, but it did serve as inspiration to start her website. The Oakdale mother, grandmother and nurse practitioner by trade is both the hands and the heart behind Cloverland Soap and Candle. A business which she began almost unintentionally over 20 years ago is now gaining a lot of social media attention as well as area storefront exposure. “Initially I was just selling to friends and people at work,” Larrabee shared, noting that she began the hobby of candle and soap making close to 25 years ago. It was her love for candles and fragrant soap which got her started. She explained that she often had a hard time finding strong candles that would burn long and that she was happy with. The nurse-by-day, crafter-by-night shared she began with paraffin and graduated to soy. “Soy is a soap and water clean-up,” she said. “That way if kids knock them over the candles clean up. Soy is clean burning. Each candle will burn for about 88 hours. “A soy wax has a memory,” she continued. “When you burn a candle, you need to burn it three hours for the first time because that’s the width diameter of the mason jar.” Looking to the World Wide Web to educate herself on the varying steps to making a viable candle
I didn’t want to make candles so expensive that nobody would buy them. So I came up with mason jars. —Betty Larrabee
as well as soap, Larrabee learned technique as well as all the ins and outs to streamlining her production. “I like soap,” she said. “I just couldn’t find soaps I wanted.” Candles which originated in apothecary jars eventually morphed to mason jars, a container she has remained with since. “I didn’t want to make candles so expensive that nobody would buy them. So I came up with mason jars,” Larrabee noted. “That was before mason jars were quite as popular as they are now.” Keeping it simple, Larrabee shared she stuck with the mason jar concept and offers one size in varying scents. The 16-ounce mason jar soy candle retails
for $13.99. Her five-ounce soap bars sell for $4.50 and her “Cupcake” decorative soaps sell for $5. All of her items are available through her website www.cloverlandsoapandcandle.com as well as sold in some shops. “Then I have them at Mama’s Closet in downtown Oakdale,” she stated. “She asked me to bring some in. It’s all just kind of word of mouth.” Many shoppers opt for connecting with her via her website. “I do have orders online because I do local deliveries free,” Larrabee continued, adding she offers free delivery to the Modesto, Denair, Turlock, and Oakdale areas. “I drop them off on their porch. I don’t want people to have to pay shipping.” Described by Larrabee as a “hobby gone bad,” she shared her production area is a simple space in the corner of her family room, not too far from where her grandchildren create artwork and play as well. Producing the product in batches of one dozen at a time, she noted she makes about 50 a month in varying scents. Storage for the product is also done at the home which has become a fragrant place with the wide variety of candles and soaps. “It seems like I’m always making them,” Larrabee shared. The most popular of her soap scents tend to be lavender, grapefruit mint, wild roses, spice mahogany for men and cucumber melon.
PHOTO CONTRIBUTED
Betty Larrabee is shown with a sample of one of her distinct in design and smell Cloverland candles.
“I used to make more but I’ve narrowed them down,” the hobbyist stated. Her most popular candle scents are cucumber melon, lavender, Egyptian amber, pineapple sage, grapefruit mint, berry vanilla, blueberry cobbler and peach cobbler. “It’s a hobby gone bad,”
she confirmed with a chuckle. “It started off as a hobby, but I get a certain sense of pleasure looking at the candles.” Now with 20 years behind her and the product expanding its exposure, Larrabee shared it has been fun to see her creations appreciated.
“You know I kind of thought that would be cool to do (sell candles in stores),” she said, admitting to not being a salesperson or one to approach a shop owner. “That’s just not me. Things just happened word of mouth and that’s okay with me.”
209 BUSINESS JOURNAL
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IN PROFILE
Turlock-based solar company expanding quickly to meet demand BY ANGELINA MARTIN 209 Business Journal
One of the nation’s fastest-growing solar energy companies has helped thousands across five different states make the switch to solar since it was founded in 2017, and its home office is right here in Turlock. Solar Energy Partners was first started four years ago by brothers Alex and Clint Williams along with Dave Madrid, who each had decades of experience in the solar industry already. The company offers a “white glove” service in researching, comparing, selecting and installing residential solar panels for customers, saving homeowners nearly $118 million since they first began. SEP grew at an astounding rate of 500% during the pandemic, most recently announcing a merger with another solar company, The Standard — a move which will allow the company to expand its footprint into several other states in addition to those where they are already established, including California, Colorado, Florida, Nevada and Texas. Though their corporate office is located in Turlock, SEP installs solar panels on homes whose owners are mainly Pacific Gas and Electric customers, Alex Williams said, as Turlock Irrigation District bills its customers for solar differently. TID customers with solar panels are billed ac-
Solar Energy Partners Location: 2925 Niagra St., Suite 9, Turlock; www.solarenergy. partners Contact information: 209-326-2578
cording to a self-generation rate, which include time-of-use energy charges, whereas PG&E customers are able to see unused energy “rollover” to the next month. In 2014, TID set a 5% cap for installed net metering meaning that once the limit was hit, new solar installations no longer qualified for the previous net metering program, which includes the opportunity to aggregate multiple solar systems or being netted on an annual basis. “In Turlock, there are two groups of people who have solar,” Williams said. “They’re either in that original 5%, or they’re someone who wasn’t as worried about the economics of it and wanted solar so that they could be a part of the solution. Or, they’re just tech-savvy and want the latest solar technology. “Solar isn’t just the smarter way to do power financially for a lot of people, it’s the smarter way to do it period.” As a result of the merger with The Standard, SEP now has 500 contractors throughout the five states
PHOTO CONTRIBUTED
In Turlock, most solar panel customers are in it for environmental benefits or because they enjoy the technology of it all, says Alex Williams of Solar Energy Partners.
where they operate, including California offices in Santa Rosa, San Jose, Stockton, Sacramento, Fresno, Bakersfield, Los Angeles, Orange County and San Diego in addition to Turlock. Recent figures released by NASA show that 2020 came in close second to 2016 for the hottest year in recorded history, pushing 2019 to third place.
With the increased heat has come increased solar popularity, both for energy cost savings as well as environmental purposes, Williams said. The company is also constantly recruiting employees for its rapidly expanding business, with most making up to $100,000 per year according to Williams. Projections from Allied Market Research pre-
dict that the solar industry should reach $223.3 billion by 2026, growing at a compound annual growth rate of 20.5% from 2019 to 2026. While most looking to switch to solar energy are hoping for quick savings, Williams encouraged them to look at the long-term picture. “If you switch to solar because you want your bill to be lower next month you
might be disappointed, but if you look at it on a longer scale the savings are there,” Williams said, noting most solar panels last up to 30 years. “Of course, on the 30-year scale there’s still a huge economic benefit to it, but the reality is that going solar is just the right thing to do. “If everybody just did the right thing, what kind of world would we live in?”
BOUTIQUE
FROM PAGE 2
PHOTO CONTRIBUTED
California Couture owner Stephanie Torres and her father pose with her first dollar earned at the business. The boutique originally began as an online store which Torres ran out of her father’s house.
job, but it was time to cut off the baby blanket and decide this is what I really want to do,” Torres said. This year, Torres will celebrate five years of California Couture as she embarks on the new adventure of being a downtown Turlock business owner. “It’s so cool to be on Main Street because I’m part of the community,” she said. “This can be a slow time for business, but I’ve had so much support from customers and am loving it.”
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209 BUSINESS JOURNAL
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JUNE 2021
NEWS
Business forecast points to continued economic improvement in 2021 BY ANGELINA MARTIN 209 Business Journal
Dr. Gökçe Soydemir recently presented 20212023 San Joaquin Valley Business Forecast’s midyear update to the Turlock Chamber of Commerce, painting an optimistic picture of recovery for the region as COVID restrictions continue to lift. In June 2020, Stanislaus State’s first of two forecasts authored by Foster Farms Endowed Professor of Business Economics Gökçe Soydemir correctly predicted that economic recovery would begin during the second half of 2020 — so long as everyone adhered to COVID-19 precautions and protocols. In his May presentation to the Chamber, Soydemir said that while the recovery did begin in late 2020, it was slowed due to the region’s hesitancy to wear masks as well as the development of new, mutated forms of the virus. This is demonstrated by the San Joaquin Valley’s total employment, which sat at about 1.75 million prior to the pandemic, Soydemir said, and fell to less than 1.5 million when shutdowns first began. The number began to creep back toward 1.65 million in late 2020/early 2021 but
has since begun to trend back downward. Now, with more people getting the vaccines, a rapid recovery is expected for the second half of 2021. “The economy is going to catch the prevailing trend that existed before,” Soydemir said. According to the graph he showed during his presentation, Soydemir predicts that employment levels could become greater than pre-pandemic values by the end of 2022 in the optimistic forecast. One of the fastest-recovering sectors of the local economy has been construction employment, which fell at the pandemic’s start but shot immediately back up in the months to follow as construction was permitted during the shutdown. While the sector experienced growth of -3.01% in 2020, it is expected to increase at 5.01% in 2021-2023. The sector employed about 85,000 prior to the pandemic and Soydemir expects there to be 75,000 working in construction by the third quarter of 2022. Another employment category which Soydemir called “interesting” was that of education and health services, which experienced a 0.79% decline
in 2020. While the sector wasn’t affected at much during the Great Recession, the economic collapse caused by the pandemic adversely affected the industry. In the second half of 2021, Soydemir predicts a 2.63% growth rate which is expected to exceed 235,000 people employed. Leisure and hospitality services were heavily impacted by the pandemic and experienced the fastest decline in employment in the Valley, Soydemir said. “That’s not surprising, because that category employs the most unskilled workers, so they were the most vulnerable,” Soydemir said. The category experienced a 17% decline in 2020 and likely won’t reach pre-pandemic levels until the end of 2023, with an expected growth of 7.88%. The only category which experienced positive growth during 2020 was that of trade, transportation and utilities — the sector least impacted by COVID-19. The 0.48% growth was described by Soydemir as “significant” and was a result of continued transportation of goods throughout the pandemic. Its projected growth rate is 2.37% and will reach
209 BUSINESS JOURNAL FILE PHOTO
One of the fastest-recovering sectors of the local economy has been construction employment.
310,000 employees by 2023, far above the longterm rate of 1.7%. “It was an essential category of employment, and more so in the Valley than anywhere else,” Soydemir said. Manufacturing, however, was struggling prior to the pandemic and continued to decline in 2020 at a rate of 2.04%. It is one of the sectors that is predicted to be slow in recovery and is anticipated to grow at a 0.96% rate. Retail trade employment had one of the worst declines and experienced a 4.01% decline in 2020.
As it recovers, the sector will have to compete with online shopping as well, Soydemir said. Retail is projected to increase at a 2.14% rate and should stay below 160,000 employees in the next two years. There were some positives from the report, like an increase in singlefamily dwelling building permits and a decrease in foreclosures; the latter statistic is due to intervention from the CARES Act and the Federal Reserve, but the number is at an alltime low since 1999. Housing prices continue to rise as excess demand contin-
ues, thanks in part to Bay Area transplants. Wages increased by 6.97% last year — the fastest-ever wage growth thanks to low labor force participation. Wages will grow slower as the recovery continues, Soydemir said, but will keep pace with inflation with projected growth at 3.29% People can view Soydemir’s presentation at bit.ly/SJVBusinessForecast. For more information about the San Joaquin Valley Business Forecast, visit csustan.edu/sjvbf.
U.S. Chamber creates national initiative to address worker shortage STAFF REPORTS 209 Business Journal
The U.S. Chamber of Commerce and the U.S. Chamber of Commerce Foundation launched America Works in June, a new nationwide initiative mobilizing industry and government to swiftly address America’s deepening worker shortage crisis. “As we stand on the cusp of what could be a great American resurgence, a worker shortage is holding back job creators across the country,” U.S. Chamber of Commerce President and CEO Suzanne Clark said. “Together, we can and we must address our nation’s workforce challenges. When you lead the world in talent, you lead the world in solutions. With a highly skilled workforce, there’s nothing business cannot achieve and nothing we as a nation cannot do.” Through the initiative, the U.S. Chamber is advocating for—and rallying the business community to push for—federal and state policy changes that will help train more Americans for in-demand jobs,
remove barriers to work, and double the number of visas available for legal immigrants. And the U.S. Chamber Foundation is expanding its most impactful employer-led workforce and job training programs and launching new efforts to connect employers to undiscovered talent. “This is Operation Warp Speed for Jobs,” Clark said. “We’re helping our members address the worker shortage by bringing the full strength of the Chamber’s advocacy muscle to this urgent crisis, expanding the Chamber Foundation’s most successful workforce programs, and mobilizing our nationwide federation of association and chamber partners to drive solutions that make America more competitive.” New surveys and federal data analysis published June 1 by the U.S. Chamber show that: There are now half as many available workers for every open job across the country (1.4 available workers per opening) as there have been on average
over the past 20 years (2.8). In several states and industries—especially hardhit sectors like education and health services as well as professional and business services—there are currently fewer job seekers than the total number of jobs open. Ninety-one percent of state and local chambers of commerce say worker shortages are holding back their economies. Eightythree percent of industry association economists say employers in their sectors are finding it more difficult to fill jobs than they were five years ago. “The worker shortage is real—and it’s getting worse by the day,” Clark said. “American businesses of every size, across every industry, in every state are reporting unprecedented challenges filling open jobs. The worker shortage is a national economic emergency, and it poses an imminent threat to our fragile recovery and America’s great resurgence.” As part of the America Works Initiative, the Chamber introduced the
America Works Agenda: a suite of legislative and regulatory solutions at the federal and state level that would eliminate barriers to work for Americans, invest in skills and job training, and reform America’s broken, outdated immigration system. Through the America Works Agenda, the U.S. Chamber is calling for: Doubling the cap on employment-based visas, doubling the quota on H-1B and H-2B visas and implementing other reforms to the legal immigration system to help employers meet demand for high-demand jobs in labor-strapped sectors Growing federal investments in employer-led job education and training programs Expanding access to childcare for working parents View the full America Works agenda. “We must arm workers with the skills they need, we must remove barriers that are keeping too many Americans on the sidelines, and we must recruit
the very best from around the world to help fill highdemand jobs,” Clark said. “One solution or the other will not get the job done: Only by addressing all three challenges can we address our nation’s workforce challenges.” The U.S. Chamber Foundation is expanding employer-led workforce and job training programs to help more businesses develop the talent they need and help more workers better prepare for the jobs of today and tomorrow. The Foundation’s Talent Pipeline Management program—an employer-led job training initiative currently working with more than 2,000 employers in 37 states—will expand to a total of 42 states by 2023 and later this year will launch a new online learning platform to reach and support even more employers and education partners across America The Foundation will soon launch a new initiative— the Jobs and Employment Data Exchange (JEDx)—to modernize and streamline job postings, improve hir-
ing data and analytics, and arm workers with better employment and earnings records when applying for jobs In addition, the U.S. Chamber Foundation is expanding its longstanding efforts to help employers recruit workers from important talent pools many overlook: The Foundation’s Hiring Our Heroes program, which has helped more than 600,000 veterans and military spouses secure jobs, will later this year launch a new program to help connect military veterans to high-demand careers in technology fields In partnership with the Society for Human Resource Management, the Foundation is encouraging and arming businesses to become “second chance” employers by hiring ex-offender job candidates. These and other private sector solutions to help employers address their workforce challenges can be found on the new America Works digital hub at uschamber.com/work.
209 209BUSINESS BUSINESS JOURNAL JOURNAL
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OPINION
Vol. 6 No. 6 ■ June 2021 PUBLISHER/OWNER
No person is your friend who demands your silence, or denies your right to grow.
Hank Vander Veen
EDITOR Sabra Stafford
NEWSROOM Dennis D. Cruz Kristina Hacker Teresa Hammond Angelina Martin Vince Rembulat Virginia Still Dennis Wyatt
CREATIVE DIRECTOR
—Alice Walker
Harold L. George
GRAPHIC DESIGNER Sharon Hoffman
SALES & MARKETING Chris Castro Beth Flanagan Karen Olsen Corey Rogers Melody Wann Charles Webber
DIGITAL Frankie Tovar Rich Matheson
The curse of the million-dollar franchise To advertise in 209 Business Journal, call Manteca • 209.249.3500 Oakdale • 209.847.3021 Turlock • 209.634.9141 209 Business Journal is published monthly 122 S. Third Ave • Oakdale, CA 95361 Information: sstafford@209magazine.com 209businessjournal.com The Oakdale Leader USPS No 178-680 Is published weekly by 209 Multimedia, 122 S. Third Ave. Oakdale, Ca 95361 ©Copyright 2021. 209 Business Journal All rights reserved. Reproduction in whole or in part of any text, photograph or illustration without written permission from the publisher of 209 Business Journal is strictly prohibited. The opinions expressed in 209 Business Journal are those of the authors and do not necessarily reflect the view of 209 Business Journal management or owner. 209 Business Journal assumes no responsibility and makes no recommendation for claims made by advertisers and shall not be liable for any damages incurred.
209MAG A Z I N E.CO M
“About 10 years ago, I bought a franchise that provides an essential service for building contractors. “Because the franchise was new, I was able to cut a terrific deal for a large territory in my state. I’m paying only a flat royalty fee each month, not a percentage of my gross sales as is typical for most franchises, so my margins are very generous. “I’ve worked my tail off to build the territory, and now I’m earning more than $1 million a year in gross sales. “I’m planning to sell the franchise within the next year or two so I can retire, but I’ve hit a snag. The franchise has indicated that it will honor my ‘flat-fee’ royalty arrangement for the remaining term of my franchise agreement (five more years), but anybody who purchases the franchise will have to agree to pay a percentage of gross sales going forward. This will eat significantly into the buyer’s income and will likely reduce the amount they will want to pay me for the franchise. “I tried to discuss this with the franchise, but they said they couldn’t offer me any exception as it would violate the law. Is that right? I would hate to think that I spent all these years building a successful franchise only to find that I can’t sell it at the end of the day.” Sometimes, you can be a victim of your own success, and this is a classic example.
CLIFF ENNICO CREATORS SYNDICATE
When you buy a franchise (either a new or an existing territory), the deal doesn’t last forever. Your agreement with the franchise lasts for several years with the right to renew for an additional period. This is assuming the franchise is happy with your performance and you have generally behaved like a good franchisee. You can sell your franchise anytime you like to a buyer the franchise approves. However, the franchise is free to impose any terms they wish on your successor, even if those differ from the deal you had with them. When a new franchise is just getting off the ground, they tend to offer extremely generous terms to their franchisees to get them on board. After all, the franchise hasn’t yet proved its business model, and earlystage franchisees are taking much bigger risks than those who buy in to the franchise later on. The problem with doing that is after a while, the franchise looks less like a franchise and more like an agglomeration of entrepreneurs who are all doing their own thing. That creates both business and legal problems for the franchise, as it dilutes the brand they want
to offer their customers. At the end of the day, franchises are all about uniformity and consistency. A Burger King in Bangor, Maine, offers the exact same menu, decor and customer experience as a Burger King in San Diego, California, and all points in between. To preserve the franchise’s brand recognition in the marketplace and make the franchise easier to operate at the corporate level, it is often necessary for the franchise to eliminate special deals and insist that all franchisees play by the same set of rules. While a franchise cannot unilaterally change the rules that are spelled out in your franchise agreement, they are perfectly free to do so when your agreement comes up for renewal or when you sell your franchise to a new owner. That’s exactly what is happening here. Normally, that’s not such a big deal, but, in this case, it poses a problem because of how successfully you have run your franchise. With over $1 million in annual gross sales, your franchise will probably be valued in the $1 million to $2 million range, depending on how much of those sales translate into net income (earnings before interest and taxes). Simply put, there aren’t a whole lot of people with pockets deep enough to buy a business in that price range, and those that do have the money aren’t looking for a
franchised service business. Your prospective buyer is likely to be a downsized corporate executive looking to buy a job for a purchase price in the low- to mid-six figures that can be financed with proceeds of a small business administration loan. So, what can you do here? First, I would have a frank discussion with the franchise about your concern that the new fee structure will inhibit your ability to sell your territory. They cannot legally make a material amendment to their program that treats similarly situated franchisees differently, but they may be able to offer a discount or impose a cap on the new percentage royalties for “all franchisees making more than $1 million in gross sales.” This information can be found on the Federal Trade Commission’s Franchise Rule Compliance Guide. They might also be willing to divide your territory into multiple territories, enabling you to sell each one separately for a price that middle-class buyers can afford. Failing that, you should have your accountant prepare pro forma financial statements showing what your franchise would earn under the new fee arrangement and resign yourself to a lower fee than you would have gotten had this not been a franchised business upon sale.
209 BUSINESS JOURNAL
8
JUNE 2021
NEWS
Ex-Red Sox player plans Manteca brewery DENNIS WYATT 209 Business Journal
Manteca is about to score their first business to compliment the family entertainment zone anchors of Big League Dreams and Great Wolf. Loma Brewing Company and the City of Manteca have hammered out a 55-year land lease agreement to allow the Los Gatos brewery to establish a flagship operation in Manteca. It will feature a 10,500-squarefoot brewing facility, a 2,300-square-foot tap room, and a covered patio to serve as a seating lounge with televisions. It will be located along Daniels Street on the northwest corner of Milo Candini Drive. The area between the covered patio and the BLD monument sign on the corner will be developed as an outdoor/open air bocce ball and game area. The brewing company will use existing parking in the 550-space BLD lot Loma Brewing owner is Kevin Youkilis. He’s a retired Major League Baseball first and third baseman who was part of the 2004 and 2007 World Champion Boston Red Sox teams. He was an All-Star in 2008, 2009, and 2011. Youkilis received the Golden Glove Award in 2007. After playing for the Red Sox for eight seasons he wore a Chicago White Sox uniform in 2012 and was part of the 2013 New York Yankees. The brewery is viewed by the city as a destination type concern that will attract visitors to Manteca and complimenting nearby businesses. The brewery will also serve casual comfort food. City leaders believe the addition of the brewpub will expand the consumer demographic to attract young adults and millennials from surrounding cities into the FEZ. The proposed lease agreement for 36,500 square feet of land is $64,000 before a $22,000 annual
MERCED
FROM PAGE 1
“The Mainzer attracts all ages,” Donovan said. “The whole idea is to come hang out and enjoy yourself.” Just down the street the El Capitan has opened. The Joie de Vivre by Hyatt boutique hotel offers a staggering amount of amenities for guests staying in one of the 114 rooms. The rooms are spread out between the refurbished Arbor Lane Wing and newly constructed Main Street Wing. The room designs and the hotel draws upon the beauty of the Central Valley and Yosemite with lots of natural, hand-crafted materials and textures. “We are thrilled to welcome guests to experience
Valley Link will require parking lot for up to 3,500 vehicles in Lathrop BY DENNIS WYATT 209 Business Journal
city “rebate” is factored into the equation. Over the course of 55 years the city’s rebates will come to $1.2 million. The lease rate was based on a market appraisal of the location’s value Loma’s business proforma — based in part on its successful Los Gatos operation — projects $3,099,200 in yearly sales in the initial years of operation. That translates into $255,684 in sales tax of which $30,992 will go to the municipal general fund to help pay for day-to-day municipal operations such as police and fire services. The city would also collect $15,450 in public safety tax to help pay for frontline police officers and firefighters. By the fifth year annual sales would reach $5,547,874 with an
the JdV by Hyatt brand’s inclusive spirit and joydriven service through this new chapter in the hotel’s history,” Donovan said. “There is so much to discover in Merced from the charm of the town’s classic American Main Street to the surrounding farms and vineyards. We’re opening during a unique time, but El Capitan has been a beacon in this community offering access to comfort and adventure for more than 100 years and that is a tradition we’re excited to expand upon.” The emergence of new businesses doesn’t stop with these three projects. Bitwise Industries and Tioga-Sequoia Brewing Company both announced plans to set up shop in downtown Merced. There’s
estimated $457,700 in annual sales tax. Of that, $55,478 would go to the city’s general fund and $27,739 to fund public safety positions on annual basis. Lomas Brewery anticipates hiring 46 people in the initial year. Staffing would increase to 68 by the fifth year. The lease rate of $62,000 will be adjusted 10 percent every 10 years. Loma is responsible for all entitlements such as growth fees and sewer/water connections as well as the construction of the facilities. All construction will be at the prevailing wage. The city retains ownership of the land as well as improvement at the termination of the lease. Loma retains the first right of refusal if the city sells the land.
also new restaurants and a wine bar coming in the future. “It’s so beautiful down here and there’s more coming,” said Merced City Councilmember Bertha Perez, whose district includes downtown Merced. “I live four blocks away and I love that I can walk to all these places that I used to have to drive to. You can come down here and get a coffee, see a show, check out some art and have dinner.” The City of Merced is doing its part to shape the future of downtown Merced. Plans include turning Main Street into a one-way between Martin Luther King Jr. Way and N Street. “Changing it to a oneway accomplishes three purposes,” Serratto said.
The biggest parking lot in the South County could end up being built in Lathrop. Ultimately 30 acres of parking that will be built as part of the Valley Link/Altamont Corridor Express transfer station on unused federal land that was once part of the Sharpe Army Depot could accommodate upwards of 3,500 vehicles. In comparison, there are 550 parking spaces at the Big League Dreams sports complex and 1,922 parking spaces at The Promenade Shops at Orchard Valley anchored by Bass Pro Shops. The parking lot for the transfer stations is referenced in the environmental document for Valley Link approved in May by the Tri Valley/San Joaquin Valley Regional Rail Authority. The initial demand calls for 10 acres of parking to be developed. The remaining 20 acres are anticipated to handle increased demand through 2040. The authority board adopted the preferred alternative for the 42-mile 7-station Valley Link project. The decision will allow the authority to move forward with design and step up efforts to secure additional funding to bring relief to the Altamont Pass corridor that currently accommodates more than 97,000 commuters on a daily basis. The new commuter rail service will connect the Central Valley with the Dublin/Pleasanton BART Station. The project will provide 74 daily round trips and is expected to carry more than 33,000 daily riders by 2040. The EIR determined the project will result in the reduction of approximately
“It slows down traffic and makes it more pedestrian friendly; it adds for a much more creative use of road spaces like parklets and bulb-outs and it adds more parking.” Additionally the city will be converting parking spots into diagonal parking spaces, add new landscaping, and is planning an expansion of Bob Hope Square that would include a stage, a welcoming arch and space for events. “We recognize that things are going to change, but it’s really an opportunity for our city - more jobs, more vibrancy, more things to do,” Serratto said. The downtown Merced art scene is ready to help spur the resurgence of the district. “I think we are about to
141 million vehicle miles traveled per year by 2040, which will significantly reduce greenhouse gas emissions. The first Valley Link trains could be placed into service in 2028. Stations will also be built at River Islands, Tracy, Mountain House, Greenville Road, Isabel Avenue in Livermore and adjacent to the Pleasanton/Dublin BART station. The River Islands station will have two parking lots. One accessed from River Islands and the other from a lot with access to Manthey Road that has an interchange with Interstate 5 between the 120 Bypass and Interstate 205. “People continue to suffer in their daily lives with anguishing super commutes,” noted Tracy Mayor Pro Tem, who serves as chair of the Valley Link board. “This hurts our environment. It hurts our economy. But importantly, it translates to the loss of 28 days per year on average for each individual commuter – and this hurts our communities and our families.” The Valley Link job will create 22,000 jobs during construction. Once the system is operational it will support 400 jobs. ACE is expected to start running three trains from Ceres to Natomas north of Sacramento in 2023 that would eventually stop in North Lathrop to allow transfers to Valley Link. A fourth train will run from Ceres to San Jose. All four trains will stop in Modesto, Ripon, and downtown Manteca. The Natomas bound trains will also stop in Stockton and Elk Grove.
see a creative renaissance happen, especially here in downtown Merced,” said Colton Dennis, the director of the Merced Multicultural Arts Center. “There’s a real desire in the community to have that connection between artist and audience back again.” The area is already home to venues for visual and performing arts like Playhouse Merced, the Merced Theatre, and the Merced Multicultural Arts Center. Soon the MAC and the city will begin a project that will see about 30 utility boxes transformed into unique art pieces by local artists. “These artists are going to inspire the next phase of Merced’s future,” Dennis said. The final component of downtown Merced’s re-
surgence is the return of events. It was kicked off by the Merced County Hispanic Chamber of Commerce’s Mercado on Cinco de Mayo. The outdoor event in Bob Hope Square featured vendors, music, live performances, an open air art gallery, a classic car show, and lots of food and drink options. The Mercado will be returning on June 3, July 1, Aug. 5, Sept. 2, and Oct. 7. “Downtown has to be an experience and it has to be a central gathering point for the whole community and there’s got to be things for everybody,” Serratto said. “Merced is in that sweet spot and to me the best kind of city. There’s enough going on, but small enough where you still know each other.”
209 BUSINESS JOURNAL
9
NEWS
Training helps former trucker find dream career I’d like to introduce you to Jonathan Nguyen who came to Bay Valley Tech’s tuition-free code academy after working in trucking for several years. He recently completed the seventh-month software developer training program and is now working in a software-based Manufacturing Execution Systems role at E&J Gallo Winery.
Q
Johnathan, thank you so much for your time. First of all, a huge congratulations on your new job! I know you have worked hard to make this day a reality for you and your family. Can you tell us your story and your career path before accepting this position at Gallo? How did you become interested in learning about software? Can you clarify what a Manufacturing Execution System is? Thank you, Phil! I hope my journey can inspire others to achieve their dream careers as well. Before joining E&J Gallo, I was working as a delivery driver in the food service industry. Driving is physically taxing and requires long hours, leaving little time for family and other priorities than I would have liked. Although the job itself paid well enough and brought bread to the table, it came at a cost. Being physically away from my family for so long often brought me feelings of guilt. I’ve known for quite awhile that I needed to change my career, but that can be quite difficult when there are already so many bills to pay. I’ve been interested in technology and the potential career opportunities in the field for some time and a couple of years ago decided to seriously explore ways to break into the industry. I began searching for online courses that would give me an introduction to computer science. After completing a few tu-
PHILIP LAN BAY VALLEY TECH
torials about developing web-apps, I was excited to learn more. The feeling of accomplishment that comes from creating an app, hosting it and bringing it to life for the public to use is one of the best feelings ever. Learning software development alone is very challenging, however, if it wasn’t for the amazing support of our local tech community and Bay Valley Tech’s staff, I would not have been able to get where I am today professionally. Manufacturing Execution Systems (MES) monitor and track the process of producing manufactured goods on the production floor. After the system collects the data, we analyze data in order to improve and streamline manufacturing operations and output. I enjoy helping the Winery improve our processes and working with the software-based MES will open up other opportunities to work on more software developmentbased projects in the near future.
Q
Did you ever have any doubts about transitioning to a professional office environment without a four-year university degree? Who were the people in your life that encouraged you to pursue this new career path, and where did you find the determination to become one of the top students in your code academy cohort? Yes, I had a lot of doubts in the beginning. To be completely honest, I wasn’t sure if leaving a career of 10+ years and jumping into a whole new field was real-
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istic. Although the journey has been challenging, it was the constant support from my family, friends and Bay Valley Tech team that made the transition possible. Witnessing first-hand how much my girlfriend enjoyed her job and worklife balance, made me realize that I needed to pursue a rewarding new career that would enable work-life balance for myself as well. I wanted to be able to spend more time with my daughter. My girlfriend was very supportive and encouraging as I put in hundreds of hours into my code academy lessons over the past year. Although acquiring the new skills needed to change careers takes a fair amount of work, I was highly motivated to create a better situation for myself and my family. It wasn’t all work though. Acquiring new skills takes time and determination. I enjoy solving programs and building software projects, so the process was fun as well. Lacking a fouryear university degree and coming in with very minimal experience compared to my classmates, I knew that, at times, I would need to put in twice as much time as others. However, I did not let the lack of a degree hold me back. The extra time that I invested in studying definitely paid off!
Q
How did you hear about Bay Valley Tech? How have code academy instructors, classmates and the tech community helped you gain the tech skills and confidence to apply for this position at Gallo? Do you think you could have accomplished this career transition so quickly by yourself? The director of the Tutoring Club that my daughter attended knew I was looking for a way to get into a
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Jonathan Nguyen
tech career and handed me a flier about Bay Valley Tech’s tuition-free code academy. Most tech training programs cost thousands of dollars, so when I got home, I immediately signed up for the next available cohort. Everyone at Bay Valley Tech has been so supportive and helpful. The instructors not only taught us technical skills that local companies were hiring for, they were also great mentors who gave honest feedback and even helped us network with employers. And as I progressed, my instructors encouraged me to mentor other classmates. There is a saying that goes, “You don’t really know something until you are able to teach it to someone else.” Being able to share my new knowledge and encourage other Bay Valley Tech classmates has helped boost my confidence level as well. My transition into this new career would definitely have been much, much slower without Bay Valley Tech. The vast majority of people who try learning software development without such a program eventually give up, unfortunately.
Q
What helped you succeed as a code academy student and what advice would you give to others facing doubts about seeking a new technology-based career? There are two things that contributed to my success – going beyond the mini-
mum requirements for each assignment and assisting my classmates with their assignments. Doing extra work exposed me to new concepts and tools, significantly expanding my knowledge base. Helping others with their lessons, not only made me feel good about giving back to our Bay Valley Tech community that had helped me so much, it was also a great way to reinforce my own knowledge of coding. My advice for new students is don’t be afraid to ask for help or clarification. Most techies are thrilled when others take interest in their chosen field and are happy to help. Also, it is crucial to set aside time and invest in further education, as the results and outcome will definitely be rewarding.
Q
What do you enjoy most about your new position versus your previous jobs? How will this new career impact you and your family’s lives? I enjoy the challenge of the work itself as well as the opportunity to grow. In my previous job, I felt like I was stuck and unable to move forward. However, with my new position, the opportunities are limitless as there are so many different projects to work on!
Q
Johnathan, you are an inspiration to all of us, and we really enjoy having you as a new member of our local tech community. How are you planning to help others in your local community and the tech community going forward? I was fortunate to be accepted into Bay Valley Tech’s free code academy which has opened the doors to many new exciting career opportunities. A huge thanks to the program’s corporate spon-
sors and funding partners. I definitely plan on paying it forward and giving back to the community. Bay Valley Tech has built a culture of helping others, and it would mean a great deal to me to continue mentoring newer students and encouraging them to pursue their tech career dreams. I plan to be an active participant in our local tech community and help build up the Central Valley’s tech ecosystem. Now that I have better work/life balance, I also plan to volunteer at future tech and non-tech events in our community, Phillip Lan Bio: As president of Bay Valley Tech, Phillip Lan oversees the organization’s fastgrowing free code academy and tech hub, which supports entrepreneurs with inexpensive office space, digital marketing services and software talent. Bay Valley Tech’s current campaign to train 1,000 new computer programmers has resulted in many of its free code academy alumni and students from the Turlock/Modesto area successfully launching new tech careers. Prior to Bay Valley Tech, Lan led the digital marketing team at E&J Gallo and held marketing, business development and leadership roles in Silicon Valley companies IBM and Ask Jeeves. He holds a bachelor’s degree in managerial economics from U.C. Davis; and an MBA in computer information systems from California State UniversityEast Bay. About Bay Valley Tech Bay Valley Tech is an innovative free code academy, training students in modern programming skills and connecting them with prospective employers. Bay Valley Tech also supports the broader tech community by sponsoring hackathons, software meetups, Women Techmakers, high school tech events and the Valley Agtech Summit. www.bayvalleytech.com
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209 BUSINESS JOURNAL
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JUNE 2021
NEWS
How to make sure your e-commerce store is optimized for sales BETH DEVINE
209 Business Journal
If you are running a business that only has a storefront and no website or online shop to back your sales up, you miss out on many business growth opportunities. The truth is that brick-and-mortar businesses (only selling from a physical location) are in big trouble thanks to the COVID-19 pandemic. In an era where customers are mobile and used to shopping from their screens, you need to transform your brick-andmortar approach to a clickand-order one. ‘What does that mean?’ The COVID crisis has taken a toll on many businesses. However, the pandemic only sped up what was already happening, which was the online retail boom, and made people aware that online shopping can be an excellent experience for buyers and a profitable channel for sellers. Since 2018, 59% of the retail stores have closed because of this trend. The digital economy is here, and it is present. But how are you going to make most of it? Below, we are sharing our take on the situation – as well as some recommendations on optimizing your online presence in the new, digital way.
from brick-and-mortar location to click-and-order, you need more than just building your website and having your shop plugin. Online shopping is nothing like offline shopping. Nowadays, consumers don’t click through pages for fun or stumble upon eCommerce stores out of nowhere. That is why you need to follow these three things to succeed in your digital journey: HELP PEOPLE FIND YOU ONLINE WITH SEO. Make your product range reflective of your online shoppers’ behavior and persona. Encourage every shopper to return to your
eCommerce store with a reminder process. Following these steps gives you a good chance of thriving despite the havoc COVID delivered. You need to find your true business identity, showcase it through your online store, and show everyone that you are committed to making online shopping easier. HOW WILL PEOPLE FIND YOUR ONLINE STORE? If this question is bothering you, you should know that there is no shortcut to becoming successful online. However, there are proven strategies that work and can help you get more customers. One of the things you
should do is experiential marketing. For instance, you can use Facebook as an advertising platform, start using more search keywords on your pages, write blogs, show everyone why your products are different, and spotlight the specific value they offer. Experts recommend keeping your eCommerce store optimized for one niche only – it could be the best strategy for tapping into an exact target audience. HIGH MARGINS MATTER AND YOU SHOULD KNOW THE FOLLOWING . . . Many online entrepreneurs don’t sell anything because of their inability to understand their market needs. No matter how good your products are, it would be best to find a way to match them to what people are ordering. On another note, you should make sure that your store is optimized with nicely designed photos, buttons, products, and descriptions — all of which is the sum of Conversion Rate Optimization. These details matter and
can help a customer see if you are worth shopping from or not. Consider implementing a comprehensive SEO and CRO strategy — it will serve you well. Ultimately, winning more online customers is inevitable if you offer a great buying experience, discount codes, bonuses, and a personalized experience with each order. Things like this matter and can be crucial to making your click-and-order website perform well in the online world. If you’re thinking you need a new website or a redesign, just fill out this website intake form and then schedule a
call with us to discuss your business goals and let our team create a unique marketing strategy for you. Devine Solutions Group is a local resource for effective marketing strategies for businesses of all sizes. Beth Devine is one of the most sought-after marketing experts in the Central Valley. She is the founder and principal of Devine Solutions Group, an awardwinning digital marketing agency headquartered in Tracy, CA. Connect with Beth by either calling 833933-8463 or email her at b eth@dev inesolutionsgroup.com.
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WATER
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To protect wildlife for future generations, you have to think inside the box.
WELCOME TO THE PORT OF TOMORROW. Surrounding the Port, perched high above the ground, are numerous boxes that our local owl species call home. Students and the community follow the owl families on hidden cameras as their eggs hatch and their young learn to �y. �e a�ectionately refer to the owls as our �air force� because they provide essential rodent control. And with 96% occupancy, the owl box program has been an ov overwhelming success— a success we look to repeat as we explore new ways to preserve the Port’s vital wildlife.
WILDLIFE
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JUNE 2021