209 Business Journal - Dec 2017

k e e p i n g

BUSINESS JOURNAL

b u s i n e s s e s

c o n n e c t e d ™

DECEMBER 2017

VOLUME 2 ■ ISSUE 11

IN PROFILE

GREAT WOLF IN THE 209

Cottonwood Café in Oakdale has expanded their menu to offer dinner options to their guests.

PAGE 3

GOVERNMENT

Haiying Zeng and Divya Katyal won Congressman Jeff Denham’s Congressional App Challenge with their Homeless Network app.

PAGE 6

500-room hotel, 500 jobs, & 500,000 visitors for Manteca

BY DENNIS WYATT 209 Business Journal

The biggest private sector investment ever in Manteca history — roughly $250 million — could create 500 permanent jobs, bring 500,000 more visitors a year to the city, provide an annual $18 million payroll, and cement Manteca’s image as the family play destination of the Northern San Joaquin Valley.

The Manteca City Council will consider an exclusive negotiation agreement with Great Wolf to develop 30 acres of municipal land into what will likely be a 500-room hotel with indoor water park, a family amusement center featuring everything from zip lines to a mini-bowling alley, five or more restaurants with seating and at least 10,000 square feet of conference center space.

Great Wolf’s Director of Development Bryson Heezen indicated at the Manteca Chamber of Commerce Lunch & Learn at Big League Dreams across Daniels Street from the proposed water park hotel resort that the goal is

to break ground in the summer of 2018.

Heezen fielded a number of questions from attendees at the chamber luncheon, including concerns whether “locals” — as defined by individuals that aren’t guests of the hotel — would have access to the water park. Heezen provided two answers. One way would be through twice a year benefits for local non-profits where the agency selected would sell water park only tickets and keep the proceeds.

The other way is by renting a room that covers one night’s stay and two days of waterpark access.

Manteca Council Richard Silverman said Great Wolf is no different than a Hyatt Regency that restricts its pool use to hotel guests only.

How a stay at Great Wolf works Heezen noted that Great Wolf substantially overbuilds its luggage storage area and locker rooms so they can offer guests maximum value.

PHOTOS CONTRIBUTED

Great Wolf is known for offering fun for children and adults alike at their popular water park attractions.

Check in time for rooms are not until 3 p.m. But guests booking a room can access the water park when it opens that day. They also will have access to the water park the following day until closing even after they have checked out of their rooms.

The rooms aren’t your typical hotel rooms. Not only are they larger, but they also have theme rooms featuring special areas for kids such as a Wolf Den with bunk beds and separate TVs. SEE GREAT

WOLF,

PAGE 10

209 209BUSINESS BUSINESS JOURNAL JOURNAL

2

DECEMBER 2017

OPINION

Vol. 2 No. 11 ■ December 2017 PUBLISHER

The way to get things done is not to mind who gets the credit for doing them.

Hank Vander Veen

GENERAL MANAGER Drew Savage

MANAGING EDITOR Sabra Stafford

NEWSROOM Jeff Benziger Jason Campbell Dennis D. Cruz Eric Escalante Kristina Hacker Teresa Hammond Marg Jackson Glenn Khal Angelina Martin Candy Padilla Vince Rembulat Hime Romero Paul Roupe Virginia Still Dennis Wyatt

­—Benjamin Jowett

ART DIRECTOR Harold L. George

ADVERTISING DIRECTORS Chuck Higgs

SALES & MARKETING Chris Castro Beth Flanagan Dawn Hamilton Corey Rogers Cathy Tuxson Melody Wann Charles Webber Jennifer Webber

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: dsavage@209businessjournal.com 209businessjournal.com The Oakdale Leader USPS No 178-680 Is published weekly by Morris Newspaper Corporation, 122 S. Third Ave. Oakdale, Ca 95361 ©Copyright 2017. 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.

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209MAG A Z I N E.CO M

Giving your lenders a piece of the action “We started a tech company last year and are getting ready to launch our first product.

To do so, we will need to borrow $200,000 from friends and family.

We have been told to structure this as a loan, but we want to give our family members a piece of our future growth if the company is successful. What are the various ways to do that?

We don’t want to set this up in such a way that it puts off venture capital investment down the road.”

Generally, someone who lends money to your company does not participate in the growth of the company; all the person is legally entitled to get back is the interest on the loan.

There are a number of ways, however, to give lenders a stake in the future growth of your company.

The most common of these is the convertible promissory note. You would give your lenders a note promising to repay their loans with interest, and you would give them the option of converting their notes into equity (in the form of stock if you are a corporation; in the form of membership interests if you are a limited liability company) at any time until the loan is repaid in full. The equity they’d receive would be based upon the outstanding principal balance of the loan at the time of conversion, as well as the

CLIFF ENNICO CREATORS SYNDICATE

valuation of your company at that time.

Sometimes — not always — you would also give the company the right to compel conversion of the debt into equity upon certain stated circumstances (for example, a funding round of at least $500,000).

Given that this is friends and family money, you might want to include such a provision, as venture capitalists and other professional investors usually do not like being subordinated to people who aren’t participating in the day-to-day management of the business (OK, they don’t like being subordinated to anybody, but that’s a column for another day).

If a convertible promissory note is not a viable option, there are other ways to give your lenders a piece of your company’s future performance.

The Equity Kicker. A loan with an equity kicker provides for two types of interest: a fixed or variable rate of interest, plus additional interest, the amount of which depends on the future performance of the company.

Sometimes the equity kicker takes the form of warrants, which allow lenders to purchase shares of stock in the

future based on today’s valuation of the company (similar to a stock option, except that it is granted to investors, not employees).

Sometimes the equity kicker is an increase in the amount of fixed or variable interest payable under the note, which is triggered by an increase in the company’s valuation. For example, a note could be structured in such a way that if the company’s valuation were to increase by at least 10 percent in a given year, the interest rate on the note would increase from 5 percent to 6 percent, or an additional 1 percent per annum for each 10 percent increase in valuation year over year. Such a note would perform in much the same way as a phantom stock plan in which participants receive cash as the company’s valuation increases year over year.

In drafting such a note, consideration needs to be paid to two important issues.

First, what happens if the company were to decrease in value? Would the increase rate be reduced to match the company’s performance, or would it stay at the higher level? It might be prudent to include a provision in such a note that any decrease in interest rate would not fall below the interest rate initially provided for in the note (i.e. a floor).

Second, you need to keep an

eye on your state’s usury laws, which normally provide for a maximum rate of interest that can be charged on business and consumer loans. While these laws are generally extremely flexible and they provide for legal interest on business loans at rates of 20 percent, 30 percent or even more, if your company were to take off like a bottle rocket, you may end up inadvertently paying your lenders more than the legal interest rate, which could get you into trouble if state or federal regulators were to discover it when auditing your books. In any promissory note, there needs to be a provision that says the interest (including any equity kicker) will not exceed the highest rate allowed by law.

The Deferred-Interest Note.

Big companies often include a provision in their note that says a decline in the company’s valuation (or other measurement of performance, such as pretax earnings or net revenue) of more than X percent will trigger a decrease in the rate of interest payable under the note.

While designed to protect companies against recessions or other material-adverse changes in the economy that are often beyond management’s control, these notes are not popular with investors — especially elderly family members who may rely on the interest as retirement income.

209 BUSINESS JOURNAL

3

IN PROFILE

DOING BUSINESS DIRECTLY

BY PAUL ROUPE 209 Business Journal

Next door to Direct Appliance on McHenry, a voluminous property that used to house ACI Career College is hollowed out to make way for the appliance store’s new home.

It’s empty now, with only a handful of workers slowly filling in the skeletal frame of the 14,000 sq. ft. showroom floor.

Ron Winter, part owner of Direct Appliance, says they hope to be moved in by Feb. 1. They’ve outgrown their current location, and a trip around the store will reveal a few cramped spots.

Tile and carpet samples crowd the entrance and fill up a portion of the back room where the kitchen displays are.

It’s definitely a long way from where they started.

Back in the 1980s, Winter worked for a small business owner named Jack Ugar, doing everything from sales to delivery to service calls. In 1995, Ugar and his wife Cyl Ugar started Direct Maytag Home Appliance Center, selling Maytag appliances almost exclusively.

Business boomed, due in part to Ugar’s connections in the industry. But in 2000 his wife died, and the next year Ugar had a brain aneurysm at his desk.

The Ugars had died without any plans for a transition in place. Their children had no interest in keeping the company alive, so Winter, another salesman and a man named Bud Heller bought it from the Ugar family. To avoid a similar fate, they soon decided that Direct Appliance should be incorporated, and after a brief hiatus they reopened in January 2002, expanded their inventory, and established themselves as one of the top appliance dealers around.

They started carrying high-end products that might be familiar to watchers of cooking shows and anything involving chef eliminations or kitchen spotlights: Sub-Zero, Wolf, Thermador, and Viking.

Of the decision to carry those brands, Winter says that “it was a natural progression. Back in those days, the economy was good, people were com-

PAUL ROUPE/209 BUSINESS JOURNAL

Direct Appliance offers a wide selection of brands and has plans to expand their facilities.

ing in. They were taking second (mortgages) out and using the money to remodel.”

That was when home improvement shows popularized renovations, so homeowners were eager to replicate the fancy furnishings they saw on television.

Soon, the housing crash and subsequent recession hit, and Direct Appliance stumbled a bit. But they didn’t fall victim to the bust. They managed to keep themselves afloat by adapting their marketing techniques.

“We had marketed our-

Quality food at area eatery extends to dinner

BY TERESA HAMMOND 209 Business Journal

Oakdale dining options just increased by one, as the ever popular as well as unique Cottonwood recently added a dinner menu to its offerings.

Owners Sanjay and Renu Arora made the decision

to add dinner to the 154 S. Yosemite location several months back. It is a decision which was sparked by the request of customers both in person as well as via social media.

Amidst all the South Yosemite road construction, the couple opened for their

selves as a high-end dealer, but when that happened, nobody could afford it, so that’s when we opened up an outlet store across town,” Winter said.

They started catering to not just those with money to blow, but those who were looking for good bar-

gains.

The outlet store on K Street in Modesto opened in 2008 and carried discounted items: scratched, dented and dinged-up, but otherwise fully functional.

A little over five years ago, SEE DIRECT, PAGE 9

Because money doesn't grow on trees ...

first dinner business the last Friday of October.

“It was unpredictable,” Sanjay Arora said of the overwhelming turnout.

“People loved it. I’m glad people called ahead to book a table. It made us so thrilled.”

NEED A

LOAN?

SEE DINNER, PAGE 9

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3600 Coffee Rd, Modesto 1400 J St, Modesto 1401 Geer Rd, Turlock TERESA HAMMOND/209 BUSINESS JOURNAL

Cottonwood owners Sanjay and Renu Arora in their newly renovated South Yosemite café. The couple recently added dinner Thursday through Saturday nights to their dining options.

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209 BUSINESS JOURNAL

4

DECEMBER 2017

IN PROFILE

A cut above Barber Club prides itself on gallantry

BY ANGELINA MARTIN 209 Business Journal

The owners of Turlock’s newest barbershop are looking to change the game.

Barber Club opened last week in downtown Turlock at 132 S. Center St., ushering in a new culture of men’s hairdressing for the area that focuses on a family-friendly environment catering to the city’s gentlemen, while also providing opportunities for future hairdressers through an apprenticeship academy.

“We’re a barbershop… but we also aren’t. Our aim is a little different,” said Marty Torres, co-owner of Barber Club. “We’re an atypical Central Valley barbershop that offers a blend of classic and modern barbering, and a hairstyling approach that allows us to teach clients how we do hair.”

“We’re trying to create a sanctuary,” said co-owner Valentin Horta. “There’s vulgarity that plagues some barbershops — we’re trying to do the opposite. We want to show our clients that here, we’re a little bit different. We’re not here to

gawk at women or cuss at everybody…we’re a little more gentlemanly.”

The chivalrous atmosphere inside Barber Club is accented by the shop’s rustic, modern décor, but the new business in the heart of downtown has been a long time coming, said Horta, who founded the first Barber Club location in Atwater almost four years ago.

Horta always planned on expanding his business, he said, and partnered with Torres to open up a shop in Turlock.

“We just hit it off right off the bat,” said Horta. “We spoke growth, we spoke the same language and I said, ‘Hey man, I’d like to work with you.’”

It took the pair two years of searching before they ultimately decided on Barber Club’s downtown location. Spaces along the city’s main thoroughfares like Golden State Boulevard and Monte Vista Avenue were considered, said Horta, but when a vacancy on downtown’s South Center Street popped up, they jumped on the opportunity.

“Shopping centers, you can find those in any city,” said Horta. “You can’t find something like downtown Turlock anywhere else. I feel like we fit in.”

Since opening its doors, Barber Club has already seen traffic from the downtown area stop into the shop for walk-in appointments, and the location’s apprenticeship academy, directed and instructed

by Torres, is already well underway, teaching future barbers the ins and outs of hairdressing.

The academy is a year and a half to two-year program that propels potential barbers into their future careers, courtesy of Torres’ knowledge. After completing 3,200 hours of training, graduates of the program are able to obtain their state barber license. Classes are taught on Sundays, giving students the chance to tend to their personal lives during the week and still have time to work toward their career goals.

In addition to learning proper barbering skills and techniques, students are also taught the importance of treating their customers

ANGELINA MARTIN/209 BUSINESS JOURNAL

Barber Club co-owners Marty Torres and Valentin Horta are hoping to help keep Turlock’s gentlemen well-groomed.

with kindness.

“The atmosphere is one of the main things we focus on,” said Torres. “We’re not trying to get our clients in and out, we want to treat people like people when they’re here. We slow things down and converse with people, like the old school barbershops before they were plagued with consumerism.”

Apprenticeship Academy student Jose Figueroa has learned a lot from Torres,

he said.

“You learn more than just haircutting here,” he said.

“I’ve learned how to stay motivated and keep a good mindset, and I’ve learned how to treat people and love our clients first. I’ve learned so much here that I didn’t learn in college.”

Barber Club is still searching for more barbers to fill up space in the shop, said Horta, and those interested may inquire about openings by calling

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Free Meet the Primes Small Business Workshop The California High-Speed Rail Authority, in partnership with the Offices of California State Senator Cathleen Galgiani and Assemblymember Adam Gray are hosting a Small, Disadvantaged and Disabled Veteran Business Enterprise Workshop. The purpose of the Workshop is to learn about the High-Speed Rail program, meet with prime contractors to hear about future contracting opportunities, network with state and local resource partners and speak one-onone to agencies that certify small and disadvantaged businesses.

or walking in. In the meantime, Horta, Torres and the shop’s other barbers are focused on providing quality haircare for the community.

“There have been a lot of setbacks, but we did it,” said Horta. “So far, people love it.”

Barber Club is open from 10 a.m. to 6 p.m. Monday through Saturday, or by appointment.

For more information call 209-489-5358.

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209 BUSINESS JOURNAL

5

AGRICULTURE

U.S. Agriculture Secretary hears Valley farmers

BY ERIC ESCALANTE 209 Business Journal

Many issues facing California farmers, from the Food Safety Modernization Act to the North American Free Trade Agreement and the 2018 Farm Bill, came to the forefront as United States Secretary of Agriculture Sonny Perdue, a former farmer and veterinarian, made his first appearance in the state at a forum hosted in Modesto on Sunday, Nov. 5.

From dairymen and walnut growers to the California Almond Board and various farm bureaus, a number of people took part in Secretary Perdue’s question and answer session at a town hall meeting hosted by the California Farm Bureau and held at the Modesto Junior College Agricultural Pavilion. Perdue sought input from farmers on the issues they’re challenged with and also sought additional input for the Farm Bill.

The event comes just a few months after community members and agricultural organizations spoke out before the United States House Committee on Agriculture during a “Listening Session” for the 2018 Farm Bill in August.

From that August meeting, one of the most commonly discussed topics was the Supplemental Nutrition Assistance Program, a program which provides food security for people unable to provide food for themselves and their families. The Cal-

STAFF REPORTS 209 Business Journal

ERIC ESCALANTE/209 BUSINESS JOURNAL

U.S. Secretary of Agriculture Sonny Perdue answered questions from Central Valley farmers at a session hosted by the California Farm Bureau at the Modesto Junior College Agricultural Pavilion. It was Perdue’s first official trip to California.

Fresh program, the California variant of SNAP, serves approximately 87,000 participants in Stanislaus County, according to a January analysis from the California Budget and Policy Center.

The secretary addressed what he considered to be a major change to the SNAP program in the upcoming Farm Bill.

“I think that one major change that you will probably definitely see in that Farm Bill is to remove those waivers for able bodied adults without dependents,” addressed Perdue, “and it’s become a lifestyle for some people when we’ve seen those waivers being reduced for people who do not have dependents but who are continuing on the program.

“Our goal is to help people get a job and to be part of the economy that would help to provide for their families and give them governmental assistance for food while they need it but then help them with the training, if they need child care, transportation, other things (that) would help them to be duly employed,” continued Perdue.

As the session progressed, concerns regarding the Food Safety and Modernization Act were expressed by multiple attendees and validated by the Secretary of Agriculture.

“You have a right to be concerned about it. We’re concerned about it, and we’re working to mitigate whatever we can at this point in time…” acknowl-

edged Perdue.

Joe Ferrari, a walnut grower out of San Joaquin County, was vehement about vague language in the bill, second time noncompliance resulting in a Class E felony, and issues of being caught between the produce safety rule and preventive control rule.

“The problem is also that, in my operation, I sell to a buyer who then is under a different rule.

He’s under the preventative controls rule. They have a requirement to verify the supplier,” said Ferrari. “The problem is this shouldn’t be in the law, because they have to tell me additional rules above and beyond what the produce safety rule has in the text. I don’t even know SEE AG

SEC,

PAGE 9

U.S. farm exports hit 3rd highest level on record STAFF REPORTS 209 Business Journal

U.S. agricultural exports totaled $140.5 billion in fiscal year 2017, climbing nearly $10.9 billion from the previous year to the third-highest level on record, U.S. Secretary of Agriculture Sonny Perdue announced Thursday. As it has done for well over 50 years, the U.S. agricultural sector once again posted an annual trade surplus, which reached $21.3 billion, up almost 30 percent from last year’s $16.6 billion.

“U.S. agriculture depends on trade. It is great to see an increase in exports and we hope to open additional markets to build on this success,” Perdue said. “I’m a growit-and-sell-it kind of guy.

If American agricultural producers keep growing it,

The smart harvest of Christmas trees leads to a healthier forest

USDA will keep helping to sell it around the world.”

China finished the fiscal year as the United States’ largest export customer, with shipments valued at $22 billion, followed closely by Canada at $20.4 billion. U.S. agricultural exports to Mexico reached $18.6 billion, a six-percent gain from last year, while exports to Japan grew 12 percent, to $11.8 billion.

Rounding out the top 10 markets were the European Union ($11.6 billion), South Korea ($6.9 billion), Hong Kong ($4 billion), Taiwan ($3.4 billion), Indonesia ($3 billion) and the Philippines ($2.6 billion).

U.S. bulk commodity exports set a volume record at 159 million metric tons, up 11 percent from FY 2016, while their value rose 16 percent to $51.4

billion. The surge was led by soybean exports, which reached a record 60 million metric tons, valued at $24 billion. Exports of corn, wheat and cotton all grew as well, with the value of cotton exports climbing 70 percent, to $5.9 billion, wheat exports up 21 percent, to $6.2 billion, and corn exports up six percent, to $9.7 billion.

A number of other products saw significant export increases as well. U.S. dairy exports grew 17 percent to $5.3 billion, beef exports were up 16 percent to $7.1 billion, and pork exports rose 14 percent to $6.4 billion. Overall, horticultural product exports increased three percent to nearly $33.9 billion, largely driven by an eight-percent increase in exports of tree nuts, which reached $8.1 bil-

lion, the second-highest total on record. Processed food and beverage exports rose two percent to $39.2 billion.

Exports are responsible for 20 percent of U.S. farm income, also driving rural economic activity and supporting more than one million American jobs both on and off the farm.

USDA continues to work to boost export opportunities for U.S. agricultural products by opening new markets, pursuing new trade agreements, enforcing existing agreements, and breaking down barriers to trade.

Complete FY 2017 (Oct. 2016-Sept. 2017) agricultural export data are available from the Global Agricultural Trade System (GATS) database: https:// apps.fas.usda.gov/gats/.

Most California forests have too many trees, so carefully selecting pines, cedars or firs in natural areas to enjoy for the Christmas season is good for the mountain landscape.

“It’s a great idea to cut down young trees for fire safety and vegetation management,” said Susie Kocher, UC Cooperative Extension forestry advisor in the Central Sierra.

“The earlier you do it, the less work it is to manage the trees in the long run.”

Kocher lives and works in Lake Tahoe. Every year, she gathers her family and friends to find forest-fresh Christmas trees in the Lake Tahoe Management Area. Of the 18 national forests in California, 11 allow Christmas tree cutting with the purchase of a $10 permit.

People who own mountain cabins or other forestland may invite family and friends to help thin trees on their personal property, which can then be used for the holiday season. However, never harvest trees on public or private property without permission.

“We have a lot of small trees on public and private forest lands because of fire suppression,” Kocher said. “They’re all competing with one another and many will ultimately die. A smart harvest of Christmas trees can improve the forest by helping with thinning.”

People with permits to cut down Christmas trees in national forests must follow strict guidelines.

Follow the same guide-

lines on private land to ensure a smart harvest.

Before chopping down the tree, be sure it is within 10 feet of another living tree, the trunk is no more than 6 inches in diameter and the stump left behind is no higher than 12 inches off the ground. Some national forests limit the harvest to certain tree species.

Despite committing to these guidelines when obtaining a permit, Kocher said she has seen some Christmas tree harvesters make ill-advised choices.

“Some people are too lazy to find a good tree and will cut the top off a large tree,” Kocher said. “You can be driving around and see what looks like a poor old Dr. Suess tree, which is what grows from the ugly remnant left behind in the forest.”

Such irresponsible Christmas tree cutting has led some forests to discontinue Christmas tree harvesting for personal use.

There has been ongoing debate about whether a fake tree or real tree is more environmentally friendly, but for Kocher, there is no question.

“Fresh real trees are a renewable resource, fake trees are not,” she said.

“It’s an agricultural product. You can contribute to a local farmers’ income or you can help thin the forest. Picking and bringing home a fresh tree, decorating it and smelling it defines the season for me. Without it, I don’t think it would feel like Christmas.”

U.S. National Forests in California that allow Christmas tree cutting with a permit are: • • • • • • • • • • •

Inyo National Forest Eldorado National Forest Klamath National Forest Lake Tahoe Basin Management Area Lassen National Forest Mendocino National Forest Modoc National Forest Plumas National Forest Shasta-Trinity National Forest Six Rivers National Forest Tahoe National Forest

209 BUSINESS JOURNAL

6

DECEMBER 2017

GOVERNMENT

Coding champions

Modesto students win Congressional App Challenge

BY ANGELINA MARTIN 209 Business Journal

When 8th graders Haiying Zeng and Divya Katyal noticed the heartbreaking amount of homelessness plaguing their hometown of Modesto, the pair decided to put their mutual love of coding to use to create a cell phone app that would help those in need.

Zeng and Katyal’s app “Homeless Network” was crowned winner of Congressman Jeff Denham’s Congressional App Challenge, which asked middle and high school students to create and showcase their own software applications, better known as apps, for mobile, tablet or computer devices on a platform of their choice.

“Homeless Network” is aimed to help individuals, homeless shelters and organizations that serve homeless populations locate homeless individuals, making it easier to direct resources for them. The app serves as a platform to pinpoint areas where help for the homeless is needed the most through crowd-

sourcing, allowing members of the community to place a dot on a map identifying an area of need. Users can also share photos of locations via text or social media, and post community service events on a custom map in the app.

This then allows service providers and other citizens to more easily provide aid and relief to homeless by visiting marked areas.

“The whole motive for this app is for people to be able to find and donate to the homeless,” said Katyal.

“There are over 500,000 homeless people in the United States, and California actually has the most in the country with over 170,000. We really wanted to help decrease those numbers.”

Katyal and Zeng, who both attend Elizabeth Ustach Middle School in Modesto, created “Homeless Network” over the summer while participating in the CodeX Program at Sylvan School District – a seven-week computer science camp. Both girls were admitted into the program

Speiller named new Superior Court Judge

BY MARG JACKSON 209 Business Journal

Oakdale resident Stacy Speiller has been sworn in as a Stanislaus County Superior Court Judge.

The Investiture Ceremony was held Dec. 8.

“Right now I’m a family law specialist,” said Speiller, who received her appointment to the bench from Gov. Jerry Brown earlier this month.

Speiller, who has been a partner in the law firm of Cash-Dudley Speiller and Torres in Modesto, said she will be phasing out her partnership as she moves in to her new career on the bench.

And while her specialty is in family law at the Modesto firm, she isn’t sure what type of cases or what department she will be in at the county courthouse.

“They will assign me wherever I’m needed,” Speiller said.

The process to be appointed to the bench is a lengthy, rigorous one, she explained, including

completing a multi-page extensive application and appearing before different interview panels, as well as having colleagues in the law community provide input. Speiller first appeared before a panel in Stockton and later had a roughly 90-minute interview in Los Angeles as she moved through the process.

A partner in the Modesto firm since 2010, Speiller and her family live in Oakdale and said they chose to locate here for a few different reasons.

“We really liked the community, it has a nice school system and my job is based in Modesto,” she said of being close to work while still enjoying the small town atmosphere of Oakdale.

She also said once the application and interviews were completed, it was a waiting game.

“I got a call from the appointment secretary for the governor,” Speiller explained. “You really don’t know (if you’ve been selected) until you get that call.”

from a large pool of applicants, and said that their love for technology and coding inspired them to apply to attend the camp.

Zeng explained that she had always wanted to become a writer one day, but after realizing she lacked the commitment it would take, she turned to coding instead.

“I view it as a form of writing, but instead of building words, you get to see your creations come to life and do what you want them to,” she said. “I can write these lines of code and then they’ll translate to something tangible that other people can share in and use for their own purposes. I like the idea that something as simple as a few lines of code can be used to make something that can help change the world.”

Like Zeng, Katyal also hopes to make the world a better place through technology.

“I believe technology can create miracles,” said Katyal. “I realized that within SEE CODING, PAGE 9

PHOTO CONTRIBUTED

Haiying Zeng (left) and Divya Katyal of Elizabeth Ustach middle School in Modesto were recently recognized by Congressman Jeff Denham as the California District 10 winners of the Congressional App Challenge for their app “Homeless Network.”

Caballero sets sights on Cannella’s Senate seat

BY JEFF BENZIGER 209 Business Journal

State Assemblywoman Anna Caballero, a Salinas Democrat, announced her candidacy for the 12th Senate District presently held by Anthony Cannella of Ceres.

Caballero, 62, is being termed out of her Assembly seat.

“I want to provide rural Californians with a pathway to strength and prosperity and I can best do that in the California State Senate,” said Caballero, who started out in politics as mayor of Salinas.

The 12th Senate District includes part of Stanislaus, Madera and Fresno counties and includes the Salinas Valley, San Benito County, Merced County.

“Rural communities

Anna Caballero

need a strong voice in the California State Senate because the big city senators do not listen to us unless we make noise and fight for what we rightfully deserve. I can provide that voice in the Senate just as I did in the State Assembly, where I led the efforts to provide safe and adequate water via a water bond

and to help rural families who faced tough times paying their bills through earned income credit.”

Caballero sounded an anti-President Trump theme when she suggested that a political storm sweeping across the country will seriously damage rural California unless the “right people” are elected.

“But not all of the storms that threaten our home, our families and our communities are natural disasters,” she said.

“Sometimes we need to recognize political storms and political disasters that are threatening us.”

She railed against what she calls “divisive rhetoric coming from Washington D.C.,” and said the storm she is referring to is one “fed by words that seek

It’s a BIG ocean of businesses out there.

Go find what you’re looking for.

S E A R C H M A K O . C O M

to engender fear so that people do not trust each other and are afraid of everybody” and fed by “intimidating sexist behavior coming from some state legislators in Sacramento.”

Caballero pledged to use her campaign to convince all voters that they can make a difference.

“We will reach out to those voters who have lost faith in themselves and our democracy, not just to people who always vote,” Caballero said. “We cannot keep our home safe unless we are all working together to prepare and respond. We will work together to adopt policies that produce affordable housing, safe drinking water, quality education and an environment that takes care of our planet.”

209 BUSINESS JOURNAL

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NEWS

Lathrop lands 140 more jobs

BY JASON CAMPBELL 209 Business Journal

One of the nation’s largest corrugated packaging facilities will be bringing nearly 140 jobs when they open for business on East Louise Avenue.

Pratt Industries – America’s fifth-largest corrugated packaging company and the world’s largest, privately-held 100 percent recycled paper and packing company – is currently hiring for a handful of positions to fill their facility at 2131 E. Louise Avenue across from Super Store Industries.

The announcement of another employer setting up shop in Lathrop was cause for celebration for

local elected leaders and city officials that have been working to secure more jobs for residents.

“One of the main goals of the council was to create more jobs for our residents so that they’re able to provide for their families, and this is another step towards achieving that goal,” Lathrop Mayor Sonny Dhaliwal said. “We’re still going to work hard to bring more jobs to our city, and we want to welcome Pratt Industries to Lathrop and wish them continued success in their endeavors.”

Currently a number of jobs are available on job search engine Glassdoor. com, ranging from human resources and shipping to

We’re still going to work hard to bring more jobs to our city, and we want to welcome Pratt Industries to Lathrop and wish them continued success in their endeavors. ­—Lathrop Mayor Sonny Dhaliwal

quality control and manufacturing. The company’s official website lists a number of specific jobs for the Lathrop site – the company’s only California location and only its second on

the West Coast – and postings, which vary depending on the title.

According to Dhaliwal, another company choosing Lathrop as a site for a facility is a testament not

only to the city’s businessfriendly climate and its prime location, but also to the city staff who works tirelessly to fulfill the council’s vision and commitment to residents.

And as the city works to bring more jobs to the community – companies that provide the sort of wages and benefits that allows people to work in the community in which they live – Dhaliwal said that the work then becomes to bring more retail to serve those same workers.

“Business is an important part of any community, and I think that the credit for this should go to the entire team that worked hard to make this a reality,” Dhaliwal said.

“We’re bringing businesses to Lathrop but we’re also working hard to bring more retail to our community as

well so that our residents will be able to keep their tax dollars where they live.

“We’re working hard on both of these fronts.”

The company is on the cutting edge of sustainability with nods from environmental leaders such as former Vice President Al Gore and former British Prime Minister Tony Blair for its innovation and dedication to using 100 percent recycled products and playing a role on the front lines of the fight against climate change.

For additional information about available jobs or more information about the company, visit www. prattindustries.com, and click on the link at the top of the page marked “careers.”

Turlock’s Emanuel Cancer Center advances treatment options for patients Diamond Pet Food

BY SABRA STAFFORD 209 Business Journal

Typically, the 10-year anniversary is celebrated with something made of tin, but the partnership between Emanuel Medical Center and Stanford Health Care opted to go for something with a bit more heft to it.

The Stanford Emanuel Radiation Oncology Center, a joint venture between Stanford Medicine, Stanford Health Care and Emanuel Cancer Center, recently added a second linear accelerator, a multimillion-dollar technology that generates focused doses of therapeutic radiation for patients undergoing cancer treatment.

By doubling its capacity, SEROC can now treat more patients and it brings the latest advances in radiotherapy to Turlock. The increased capacity at SEROC ensures that patients who need radiation therapy have more treatment options than ever, at more convenient times.

“One of the immediate benefits the new accelerator has brought is the ability for all patients to

be treated during regular business hours,” said Alisa Ward, manager at the radiation oncology center.

“With only one machine, we were scheduling patients with appointment times anywhere from 6 a.m. until 9 p.m.”

The new linear accelerator joins an accelerator initially installed when SEROC opened in 2007. At SEROC, patients are treated by Stanford physicians and physicists, including radiation oncologists Dr. Quoc Luu and Dr. Sandra Zaky.

“Having a second linear accelerator provides double the amount of access to radiation therapy for patients in the Central Valley,” Dr. Zaky said. “The new machine will complement the advanced treatments that are already being provided at SEROC. The new machine will continue to provide world-class Stanford care in the greater Turlock community.”

Both accelerators possess the technology to precisely target tumors using advanced imaging technology, and then deliver

planning to expand Ripon manufacturing

BY VINCE REMBULAT 209 Business Journal

PHOTO CONTRIBUTED

A second linear accelerator is now in use at the Stanford Emanuel Radiation Oncology Center in Turlock and is giving patients more focused treatment options.

carefully calibrated doses of radiation to those tumors.

With the addition of the new linear accelerator, physicians will be able to match patients to the machine that best complements their physical and treatment needs, Ward ex-

plained.

The new accelerator was installed, tested and inspected over the summer, and is now in operation.

Stanford Emanuel Radiation Oncology Center is located in the Emanuel Cancer Center at 880 E. Tuolumne Road in Turlock.

Ceres Chamber seeks nominations for Community Service Awards STAFF REPORTS 209 Business Journal

Nominations are being sought for the 2018 annual Community Service Awards & Installation Dinner, the Ceres Chamber of Commerce’s annual recognition of outstanding members in the Ceres community who have made extraordinary contributions in service.

Once again, the Chamber is seeking nominations of citizens and businesses for the following categories: Distinguished Service, Volunteer of the Year, Business of the Year, Downtown

Business of the Year, Citizen and Young Citizen of the Year, and Legacy, which honors individuals and/or businesses that have contributed through service, support or volunteer efforts to the Ceres community for more than 40 years.

Nominations may be made online at CeresChamber.com or in the Ceres Chamber office located at 2904 Fourth Street in Ceres, now until Dec. 31. All nominees will be invited to the Chamber’s 49th banquet scheduled for 6 p.m. Jan. 26 at the Ceres Community Center. Tickets are $40 per

person. Sponsorship tables seating eight also may be purchased for $350 and includes complimentary wine and sponsor recognition during the event.

To purchase tickets or to sponsor a table, contact the Chamber at 537-2601.

Tickets may also be purchased online at cereschamber.com, or email info@ cereschamber.com.

For more information about this or other upcoming events, visit the Chamber’s website at www.cereschamber.com.

The Diamond Pet Food in Ripon is looking to expand its existing facility.

The pet food manufacturing plant at 942 S. Stockton Ave. will need a discretionary permit from the San Joaquin Air Pollution Control District in order for the proposed expansion to take place.

The expansion plans call for new equipment installation, including but not limited to odor control equipment.

Not long after Diamond Pet Food opened up operation some five years ago, folks complained of foul odors from the busy plant.

The City and Diamond Pet Food officials spent time trying to remedy the problem back then by using add-on odor control technology.

As for the expansion, City Attorney Tom Terpstra said there were two layers to this project.

“Diamond Pet Food has to get approval from the City for the expansion, which they did with the initial three lines and, second, an Environmental Review has to take place to the add the fourth line, in which they need to introduce new odor reduction technologies,” he said at the Oct. 10 Ripon City Council meeting.

Terpstra added: “The Air District as a state agency does not act as the

lead agency, the City of Ripon would fill that role as it did originally.”

Councilman Leo Zuber doesn’t want the same issues as that of the first time around. “Council was told that everything was going to work and once it was approved and implemented, it did not,” he said.

Council, at this point, approved the Diamond Pet Food reimbursement agreement, which provides reimbursement for staff time used to respond to the application for the expansion.

“This is just starting the process for the (Environmental Review) studies to take place,” said Vice Mayor Michael Restuccia.

Terpstra indicated that Diamond Pet Food officials had met with the Central Valley Air Pollution Control District to discuss the technology for the new and existing lines and will go through the appropriate steps with the Council in order to receive public comment on the Environmental Review.

“Council will have the opportunity to hire consultants to evaluate the studies independently,” he said.

As the lead agency, the City of Ripon, for the purpose of this expansion project, has agreed to fulfill the necessary requirements of the California Environmental Quality Act.

209 BUSINESS JOURNAL

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DECEMBER 2017

NEWS

Report: Regional action needed to grow Valley economy Manteca considering plans

for 153-trailer storage lot

BY ANGELINA MARTIN 209 Business Journal

The North San Joaquin Valley – consisting of adjoining counties San Joaquin, Stanislaus and Merced – exceeded the California state average in job growth this past year, according to the Center for Business and Policy Research at University of the Pacific, but still has plenty of work to do if the agricultural region hopes to be taken seriously by neighboring political and business communities.

Jeffrey Michael, executive director of CBPR at UOP, presented the center’s 2017 NSJV Index at the NSJV Conference in Modesto last week, giving insight into areas where the Valley has progressed over the past year, as well as the categories where there is still progress to be made. The conference also featured a panel discussion between CBPR Associate Director Thomas Pogue, Tammy Brecht Dunbar, an experienced Manteca educator and 2016 California Woman of the Year for Assembly District 12, and David Darmstandler, CEO/Co-Founder of Datapath, an IT managed services and network security provider located in Modesto.

Michael explained that the NSJV is part of the larger Core Northern California Megaregion, serving as the intersection to other members like the San Francisco Bay Area and the Sacramento Capital Region and the neighboring South San Joaquin Valley Region. In order to boost economic and enhanced quality life, CBPR concluded in 2014 that three areas where regional collaboration could benefit the NSJV are regional identity, infrastructure and human capital.

“The index and annual conference are tools to help build regional identity, and speak conversation and action about opportunities for regional action to further common goals for economic and community development,” said Michael.

He pointed to the ACE Forward project as a recent example of positive regional action, which will extend rail service beyond San Joaquin County to Stanislaus and Merced, and suggested that developing a regional airport of its own is another step the NSJV can take to become more accessible to other regions.

“Why not look into a regional airport?” Michael asked. “There is a lot more this region needs to attract a more diverse business community, and one of those

BY DENNIS WYATT 209 Business Journal

ANGELINA MARTIN/209 BUSINESS JOURNAL

Datapath CEO David Darmstandler and Manteca educator Tammy Brecht Dunbar highlighted the importance of technology, both in work skills and in the classroom, during a panel discussion at the 2017 State of the North San Joaquin Valley conference, hosted

by University of the Pacific’s Center for Business and Policy Research.

things is an airport.”

A booming economy also attracts business owners, and the 2017 NSJV Index presented by Michael revealed that the region has made some positive strides this past year. The poverty rate dropped substantially in 2016, he said, and the rate in San Joaquin and Stanislaus counties is now equal to the state average, closing a long-standing and persistent gap between the region’s two largest counties and California.

“The poverty rate is now back to pre-recession levels across the valley,” said Michael.

The NSJV also added approximately 15,000 jobs between 2016 and 2017 for a 3.5 percent gain, and employment gains in the Trade/Transportation and Healthcare sectors have contributed to a majority of employment growth in the valley over the past decade.

In the past year, however, job growth has been far more balanced across the different sectors, though many middle-class occupations, like manufacturing and construction, are on the decline.

While the NSJV economy, as measured by GDP, grew to $54 billion in 2016 – a growth pace of 4.1 percent, which is more than double the U.S. growth over the same period – the very small presence of high-skill, high-paying sectors like professional services and information are a major economic challenge for the region. “…this industry’s share in the NSJV is only ten percent of the U.S. average,” said Michael.

Other indicators of economic prosperity in the NSJV, as presented by the index, include the fact that median household incomes experienced the best growth in a decade in 2016, and vacancy rates for commercial real

estate are dropping, while average rents are rising.

Despite the fact that the value of agriculture output dropped in 2016 for the second year in a row (likely due to drought conditions), income and wages within the industry are all significantly higher than they were five and ten years ago.

“Wages were flat from 2008 to 2011, but since 2011, the average weekly wage has increased from $502 to $637 now in 2016,” said Michael.

Looking forward, small businesses expressed in the UOP survey that they are increasingly optimistic about future demand, but remain concerned about rising costs, healthcare policy and workforce skills.

In the panel discussion, both Dunbar and Darmstandler emphasized the importance of growing the tech and specialty industries here in the NSJV – whether it be by enticing Bay Area entrepreneurs to work and reside here, or introducing students to the opportunities technology can provide.

It’s been difficult to find experienced workers to contribute to Datapath, Darmstandler said, whose company is constantly expanding.

The organization has been named to the Inc. 5000 Fastest Growing Companies List for straight six years.

“The challenges are – there are a lot of them, obviously – as you grow, finding specialists is pretty difficult. So, we’ve taken kind of a ‘greener pastures’ approach, trying to draw people from the east bay,” said Durmstandler.

Many employees that live and work in the bay find it to be too expensive, he explained, thus making home ownership in the valley more desirable. Datapath’s wages are also based on the state average, rather than the NSJV average.

Less tech and specialty

workers in the region also gives employees a better chance at making a name for themselves, said Durmstandler.

“As far as opportunities, I think the impact you can have as a professional here in this area is far different from the impact you can have over in the Bay Area,” he said. “Over there, you’re just a number.”

Creating the next generation of tech workers in the NSJV begins in the classroom, added Dunbar. She teaches fifth grade in Manteca Unified School District, which was one of the first districts in the state to have a one-to-one student-to-device ratio, meaning for every student in the district, there is a Chromebook for him or her to use.

There are problems that come with relying on technology as part of the schools’ curriculum, however, such as getting teachers on board with going digital.

“A lot of the problem is, you can’t teach the kids until the teacher has skills and confidence,” said Dunbar. “A lot of teachers think that they have to 100 percent know something before they can teach it.”

Exposure is the best remedy, she continued, as made evident in Manteca.

“We took about a year and a half to train teachers on the devices, and then just let people go and experiment and explore,” said Dunbar.

“Now, we’ve got teachers who have confidence, who are trying new things.”

Tech is a key which can truly transform economic opportunities, both panelists agreed, and to deepen the global competitiveness of the Northern California Megaregion, businesses and educational institutions must work together.

To view the NSJV Index, visit www.pacificcbpr.org.

What is essentially a short-term storage lot for containers and trailers that are transferred to and from Union Pacific Railroad flat cars is being proposed for part of the CenterPoint Business Park in northwest Manteca.

The 6.8-acre site immediately across from the UP Railroad intermodal yard will accommodate 153 trailers and containers. It is proposed to be fenced and landscaped in a manner that the visual impact from Airport Way will be at a minimum.

Access to the intermodal yard will primarily be from a private railroad crossing that will tie directly into the UP intermodal center that has gained approval to triple in size.

The plans for the storage lot are before the Manteca Planning Commission.

The storage yard fits into the city’s plans to make the northwest area of Manteca a major warehouse and distribution hub.

It is where the 404,657-square-foot distribution center for 5.11 Tactical is being built.

The plan for Tactical 5.11 also calls for a possible 134,500-square-foot addition at a later date.

Manteca’s biggest distribution-style concrete tilt-up building is being pursued on the southwest corner of Airport Way and Roth Road as part of the CenterPoint business park.

Dubbed “The Laurie Project” by CenterPoint that is building it either as a spec building

or for a client that they have yet to disclose, the 1,199,997-square-foot building is being proposed in two phases on a 63.29-acre parcel. The first phase will consist of 551,475 square feet.

It could take up to 40 years for Union Pacific to almost triple the size of its Lathrop intermodal facility that transfers truck trailers to and from railroad cars.

The railroad hammered out a development agreement with San Joaquin County that establishes timing for previously approved land use and infrastructure improvements. The development agreement is in effect for 25 years with the ability for up to three additional five-year extensions.

The decision by UP to expand the Lathrop facility that fronts Roth Road underscores the growing logistical importance South San Joaquin County and Northern Stanislaus County have in not only to ship California agricultural products east, but to move goods from local distribution centers to markets in the Bay Area, Sacramento area, and the Fresno-Bakersfield area.

The Lathrop-TracyManteca-Stockton area is home to distribution centers such as Amazon, Home Depot, Ford Motor Co., Orchard Supply Hardware, Lineage Refrigeration, Dryers Ice Cream, Safeway, Costco, Best Buy, SSI Industries (SaveMart, Raley’s) Fed/ Ex, United Parcel Service, and Restoration Hardware to name a few.

When the Lathrop exSEE UP, PAGE 11

PHOTO CONTRIBUTED BY UNION PACIFIC

A shipping container is being lifted from a railroad flatcar to a waiting truck trailer at a Union Pacific intermodal yard.

209 BUSINESS JOURNAL

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NEWS

CODING

FROM PAGE 6

new technology, there’s the possibility for the betterment of communities, and coding is something I can do to help enhance that.”

While both girls knew they wanted to use their coding skills for good, the idea for “Homeless Network” came while Katyal and her family were already doing what they could to give back to the homeless population in Modesto.

“Twice a year, my family and I distribute homeless care packages, and this past June we drove for two or three hours trying to find homeless people to help,” she said. “Our efforts proved fruitless, so I thought of the app idea that could maybe help users find these individuals. I know there are a lot of people out there would like to

DINNER

FROM PAGE 3

While the sudden notification of the road shut down in front of the business may have sparked an initial sting for the husband and wife team, the customer support more than made up for it. Initially the couple planned to extend the dinner hours strictly to Friday and Saturday. They have since added Thursday night hours as well.

Cottonwood is open

DIRECT

FROM PAGE 3

Direct Appliance became the company it is today, with the addition of Direct Flooring and Home.

Though it’s a separate corporation, it’s affiliated closely with Direct Appliance and is contracted to do many of their installations.

Now they wouldn’t just sell the appliances, they would come to your house and put them in too. Remodeling became a central focus of the business.

Countertops, cabinets, flooring, lighting and plumbing fixtures were all tied together, so customers had to look no further to get their kitchens up and running.

“Not everybody is getting that service from us,” says Winter. “But most of the time they want the benefit of having it all in one store.”

And if a customer has an issue with a product or how it was installed, they have their own service depart-

help the homeless but don’t know how or where to start, so if the app can help them know the locations or where to donate, then they can make a difference in the community.”

Zeng and Katyal made that idea a reality while participating in CodeX, where the app won the program’s inaugural pitch competition in August.

“Divya and Haiying display the potential that every student has when exposed to computer science,” said Emmanuel Escamilla, founder of the CodeX Program. “They represent Modesto and the Central Valley well in developing an innovative approach to helping the homeless.”

On Nov. 20, the duo was recognized by Denham as the winners of the Congressional App Challenge, and “Homeless Network” will be featured on the U.S. House of Representatives website and displayed in a U.S. Capitol exhibit.

“I admire these young students’ attention to issues in our community and their desire to serve those less fortunate,” said Denham. “Homelessness is a serious issue, and here in the Central Valley we see far too much of it.”

While “Homeless Network” isn’t quite ready for public use, as more features have yet to be added, Zeng and Katyal hope that one day it can help make a difference. There is still much work to be done, however, and those who would like to lend their support in helping get the app up and running are encouraged to contact Katyal’s mother, Shalini, at 209-5348299, or email Katyal at dkatyal17@gmail.com.

“We have the basic app set up, but we haven’t fine-tuned it yet,” said Zeng. “We hope that one day, it can help to diminish the plight of the homeless community.”

from 10 a.m. to 4 p.m.

Monday through Friday; from 10 a.m. to 3 p.m. Saturday and Sunday and dinner is served from 5 p.m. to 10 p.m. Thursday through Saturday.

“Oakdale is a town where they accept you,” Sanjay Arora said of the acceptance and encouragement of their clientele since first taking over the business five years ago. “Anybody can open a restaurant here and if the food is good, they will love you. They support local mom and pops. They

know good food.”

And if there is one thing Sanjay Arora knows, it’s good food. A graduate of London Culinary College, the restaurant owner lights up once the questions start regarding entree choices and planning of the dinner menu.

“I have a contemporary cuisine food degree,” he said. “I’m a foodie. Cooking is my passion.”

“He has so much fun,” wife Renu Arora stated of watching her husband work the kitchen — prep-

ment that handles it.

The McHenry location has a steady stream of business, and when the new place opens it seems inevitable that more traffic will follow.

Even though they are now incorporated, they don’t plan on extending across state lines or even out of the Central Valley.

They don’t harbor dreams of nationwide domination of the appliance industry.

“We like the idea of having a central location, draw the people to us,” Winter said.

His wife Colleen Winter, who left a former life as a journalist to join what has now become like a family business, agrees with Ron. “You can have a really nice store and draw people, or you can have a lot of mediocre stores everywhere,” she said.

While Direct Appliance does have a website to buy from, they like people to come in so their employees can help be more handson with their assistance.

“Our people are trained,” Winter says of his staff. “If we hire somebody that has no experience in the field, the first thing we do is send ‘em off to all the appliance schools…They know their stuff.”

Some customers come in and gaze around the store, confused, unsure of how to even get started. But once the staff knows what they want, they steer them in the right direction to narrow their focus.

“That’s what we’re good at,” Winter says. “Helping people make right decisions.”

The work atmosphere is relaxed, and everyone seems to enjoy each other’s company. The Winters’ son Kris is also part of the crew, an Iraqi war veteran who now shares a slice of ownership.

They look to carry their success to the new store, and inside the cavernous room Winter points and lays out the future.

With a sweep of the hand, the floor plan is con-

AG SEC

FROM PAGE 5 what that is. That goes beyond my knowledge, and I could get the person subsequent to me in trouble by something I didn’t know I was supposed to do or wasn’t supposed to do.”

The session also addressed trade agreements as the California Almond Board’s David Phippen expressed his discomfort over President Donald Trump’s remarks on the North American Free Trade Agreement.

“I wanted you to know that these trade agreements are vital to our industry, and it’s not just the almond industry here in California.

As you well know, many of our crops are exported,” Phippen stated, who also previously stated that 70 percent of California almonds are exported.

Escalon dairyman Rien Doornenbal supplemented Phippen’s

ping fresh ingredients for the day crowd and serving as chef for the evening clients. “I love this place. I love these people. They are so good to us.”

The two have been married 25 years this December. They have resided in the U.S. for 18 years, the past nine being in Turlock.

Sanjay Arora credits the palate of an appreciation for fine food as one of many standout features in Oakdale. In keeping with creating a memorable dining experience for locals

claims by adding that dairymen, corn growers and hog producers have benefited from NAFTA. “If we lose NAFTA, I know my dairy employee problems will be gone because I won’t have any cows left for them to milk,” Doornenbal said.

Addressing the concerns, Perdue responded, “Our president is an interesting negotiator. If you read the book ‘The Art of the Deal,’ he feels like you’re not going to be able to get the best deal if you’re not willing to walk away from the deal, and that does concern me. I think we’re going to get a NAFTA deal in the end, but there may be some bumpy roads in between.”

As the session came to a close, Secretary Perdue acknowledged that there is more for him to do as he recognized the importance of trade, the labor concerns for dairymen and harvesters, and the environmental and tax regulations that impact farmers such as those regarding food safety.

as well as those passing through, the couple updated the interior of the café.

They also added beer, wine and champagne to the dining options.

The dinner menu is simple by way of choice, in comparison to the lunch and breakfast offerings.

Limited to one page, diners can choose from a variety of lamb, chicken, vegetarian or prime rib.

The daytime salad menu is also available to the dinner crowd.

The simplicity of the din-

ner menu was intentional.

Quality over quantity is the focus of the Aroras, by way of food as well as experience.

“The focus should be on your company, your companion,” Sanjay Arora said of an optimal dining experience. “You shouldn’t be overwhelmed by the menu choices.”

Cottonwood accepts reservations for dinner as well as orders for takeout. For additional information, call 209-847-4748.

PAUL ROUPE/209 BUSINESS JOURNAL

Ron Winter, far left in the black jacket, assists customers with a dishwasher purchase at Direct Appliance.

jured up, the vision of what goes where already predetermined.

The top floor wraps around the perimeter, set to accommodate the disabled.

The sample kitchen for MJC culinary classes (which they

offer at no charge), goes in the rear. When the job is finished, the facility will be nearly four times the size of their current home.

Ron and Colleen Winter stand near the entrance, the pride of their achieve-

ment etched into their faces.

But not long after, the daydreaming ends.

They return next door, to a sudden influx of customers.

It’s time to get back to work.

209 BUSINESS JOURNAL

10

The smallest theme room is designed for four to six people with larger ones accommodating up to eight people.

The resort offers standard, themed and premium rooms.

Based on Ground Mound Great Wolf Resort pricing in the Washington, a standard room for four is available currently for $199.99 a night. The lowest priced themed room — the KidKamp Suite — is currently $269.99 a night for up to eight guests. The lowest priced premium suite that accommodates up to six people is currently $319.99 a night.

The room rate includes two days of water park access plus other activities that are kid-orientated in the lobby area such as story time and other endeavors such as kids’ yoga and craft time.

Pricing varies with peak periods. In other words, during high demand periods such as holidays and such that $319.99 premium room at Ground Mound can runs high as $599.99 a night.

By controlling access, Heezen noted Great Wolf creates value for its hotel guests. The exclusivity allows guests to have much shorter lines than at a typical water park, and enhances security allowing parents more peace of mind.

“That way if a youngster wanted to go 100 times down the same slide they could easily do it,” Heezen noted.

General public access to restaurants and family entertainment zone While non-room rental access to the water park is only twice a year, that is not the case with restaurants or the family entertainment zone known as Adventureland.

It is part of the new second generation of Great Wolf Lodges that includes 15 existing resorts, two under construction, and one that is expected to be announced shortly.

The Adventureland includes a rope course, zip line, miniature golf, mini-bowling alley, rock climbing wall, arcade, and more. It is all indoors and is accessed off the lobby.

It is a pay to play, meaning guests as well as the general public are charged for each attraction.

There will be four or five

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DECEMBER 2017

different restaurants at the proposed Manteca resort.

One would be a family sit down restaurant while another would be buffet style.

Others typically include a Tex-Mex and American style dinning. That is in addition to other eating/ drink places that typically include Ben and Jerry’s ice cream, Dunkin’ Donuts, and other outlets such as a candy store.

All of the dining options — that between them will seat 2,100 people — are open to the public as well.

Why Manteca?

Heezen said Manteca’s location is appealing for a number of reasons.

It is a short vacation trip for those in the lucrative Bay Area market. And, just like Bass Pro Shops, they target a 100-mile market.

Manteca happens to be at the epicenter of the third largest 100-mile market behind Los Angeles and Long Island.

Manteca also has completed the environmental work and political approvals that can typically take at least two years.

The site is also shovel ready. The city has spent $9 million in redevelopment agency bond proceeds on infrastructure that also will do double duty allowing the city to have less expensive gravity flow sewer serving the area south of the 120 Bypass. Plus, when the gravity system is up and running the existing forced sewer main will be cleaned and converted to transporting treated wastewater to parks and other areas south of the 120 Bypass, where it can be used to irrigate grass and other landscaping.

Altogether $15 million in RDA funds will be invested in the general area not only to make development of a water park resort possible but to develop other retail, business parks, and housing.

When Great Wolf first approached Manteca seven years ago they were basically a brand or operator. Since then they have gained the financial muscle to build and finance their own resorts.

With 20-plus years of experience, Great Wolf has a solid track record of success. Their primary marketing targets are families with young children from 2 to 12 years of age. That said the resort caters to people of all ages.

PHOTO CONTRIBUTED

Great Wolf Lodge is looking toward Manteca as the potential home for a new 500-room hotel and water park.

That marketing also has a lot of muscle. They will spend $5 million on advertising that specifically ties their resorts into the cities where they are located.

The numbers The Great Wolf investment in Manteca would come in at around $250 million.

Some 1,500 people would be employed constructing the resort immediately west of Costco along the 120 Bypass.

There would be 500 jobs, 45 percent of which will be full-time. Most of the remaining jobs are parttime on a year-round basis, although a percentage will be seasonal.

A performance sharing agreement — for the room tax generated by the resort — between the city and Great Wolf would award the resort for making goals.

That funding mechanism — expected to last 25 years — will help secure financing for the $250 million project. While the validity of the projections are now being verified as to their accuracy by a third party hired by the city that specializes in such an analysis, based on Great Wolf’s typical 70 percent room

occupancy the room tax could generate $4 million a year. Preliminary numbers give Manteca roughly $1 million or twice of what it is now receiving from all other hotels in town.

That would be money that would flow into the general fund to help pay for municipal services.

The city would also receive roughly $600,000 from sales tax and property taxes. That’s against an additional $350,000 they anticipate it will cost to provide Great Wolf with services such as police and fire.

That means Manteca could see a net positive flow of $1.25 million annually from the resort in addition to $123,000 Measure M public safety tax that wasn’t included in the analysis as it is restricted only for police and fire services.

The exact size of the conference center hasn’t been determined though based on other Great Wolf resorts it will be at least 10,000 square feet.

Heezen expects it will accommodate between 1,000 and 2,500 people.

The conference centers do not require hotel bookings to use.

The precise size of all amenities will be determined after the council approves the exclusive negotiating agreement. That’s because the final detailed plan will be a significant cost to Great Wolf. They don’t want to make such a relatively major investment without knowing it can go forward. And while the city and Great Wolf have ironed out basic details of the framework for the agreement, the more intense work will start after both parties are on the same general page.

City Manager Tim Ogden noted the city’s general fund will not be on the hook for a cent.

As for the room tax, the city is giving up part of the revenue being generated just for the next 25 years it would not receive if there wasn’t a water park resort project.

Spillover effect The impacts of Great Wolf are expected to go far beyond the proposed site on the extension of Daniels Street and the money flowing into the general fund to support city services.

Heezen said the resort company wants local entities to take advantage of

the 500,000 consumers they would bring to Manteca. They have found that guests who do access places outside of their resorts during their stay are more likely to become repeat customers.

Those 500,000 guests often buy gas and will sometimes dine away from the resort. They will also shop, see movies and take in other attractions such as wine tasting and such.

That is in addition to an annual $18 million payroll.

Great Wolf would be the city’s largest private sector employer after Doctors Hospital of Manteca.

Water misers Roughly 98 percent of the water in a Great Wolf resort is recycled.

“All of the water in the water park is the equivalent of one Olympic sized swimming pool,” Heezen pointed out.

Great Wolf resorts typically have a three-story, 21,000-square-foot facility they dub “The Bunker” that cleans and purifies the water they use as it is recycled. The same attention is paid to air quality inside the resort as well.

209 BUSINESS JOURNAL

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ACCOLADES

PROMOTIONS, APPOINTMENTS, HONORS, ETC. Cattlewomen tap Telles as Outstanding 2017 Cowbelle

The San Joaquin-Stanislaus CattleWomen selected Bobbie Telles as the 2017 Cowbelle of the year earlier this fall at a meeting of the local organization. Telles was given an engraved cowbell and a sterling silver pendant to celebrate her hard work. The award singles out an outstanding member who dedicates a significant amount of time and effort to promote the Bobby Telles beef industry.

Telles has been a member of three CattleWomen’s Units over the past 30 years. During that time she has promoted beef by doing classroom presentations, cooking beef at the California State Fair and Costco, creating displays at county fairs, rodeos, jackpots and San Francisco schools and chairing various committees. She has served in offices at the local and state level and now has been awarded Cowbelle of the year in each of the three Units that she has been a member of – including Cowbelle of the Year, 2017, San Joaquin/Stanislaus; 2001, Glenn/Colusa; and 1992, Alameda County/Contra Costa.

Telles lives on a cattle ranch in Farmington with her husband. They are both very active members of the Oakdale Saddle Club and the Oakdale Cowboy Museum as well.

Telles was born and raised in California.

She attended UC Davis and Fresno State.

While she ranched for a short time in Idaho, she quickly returned to California and became very involved with Alameda/Contra Costa CattleWomen. She has and continues to see the ups and downs of the California cattle industry. Her heart and soul is with the beef industry. It is truly a lifestyle she loves. Over the years Telles could be found in a corral, at a jackpot roping, team penning or roping at the Livermore and Hayward Rodeos. Anywhere that involves the ranching lifestyle.

She has been a member of the support crew for Cal Fire since 2012 and has spent several summers during fire season, camped in her cattle trailer (open air) for weeks at a time, until relieved of her duties when the fire is secured.

Brockman named Modesto Nuts general manager

HWS Baseball IV, the managing partner of the Modesto Nuts Professional Baseball Club, has announced the hiring of Zach Brockman as General Manager of the Modesto Nuts. Brockman previously worked for the Nuts from 2008 to 2011

UP

FROM PAGE 8 pansion is done, the regional capacity for intermodal movements will soar to 1.3 million units a year between the UP complex and the Santa Fe intermodal facility north off Manteca, between Austin Road and Jack Tone Road. That is the equivalent of 3,561

as an Account Executive and Director of Ticket Sales. Following his first stint in Modesto, Brockman worked for the Myrtle Beach Pelicans and the Tulsa Drillers.

“We are very excited to bring Zach Brockman back to the Modesto Nuts family,” said Executive Vice President Mike Gorrasi. “Zach has proven to be a dynamic and forward-thinking sales leader in our industry. We are confident he will thrive in his new role as General Manager.”

Brockman was a member of the Nuts front office staff that set five (5) consecutive franchise attendance records. He also played a vital role in the planning and execution of the 2011 California League AllStar game.

“I’d like to thank Mike Savit and Mike Gorrasi for this opportunity,” said Brockman. “Both have been incredibly influential in my career. Modesto gave me my first opportunity to work in professional sports and I couldn’t be happier to be back.”

“The game of baseball has had a tremendous impact on my life,” continued Brockman. “There are countless lessons that I’ve learned along the way that have helped shape who I am both from a personal and professional standpoint. More importantly, this game has given me the privilege of meeting and connecting with amazing people in every market I’ve worked in. I cannot wait to reunite with old friends and make a lot of new ones as we grow our community footprint in the Modesto market.”

ney at the Law Offices of Carmen Ramirez from 2011 to 2014. Ramirez held several positions at Fagalde Albertoni and Flores LLP from 2007 to 2010, including counsel, associate and law clerk, and was a redevelopment associate at the City of Merced Office of Economic Development from 2003 to 2007. Ramirez earned a Juris Doctor degree from the San Joaquin College of Law. This position requires Senate confirmation and the compensation is $250 per diem. Ramirez is a Democrat.

tion degree in sports management from the U.S. Sports Academy in 2009. He also holds a bachelor’s degree in history and a master’s degree in kinesiology from San Jose State University.

“I accept this award on behalf of the alumni of the United States Sports Academy because we are the ones who utilize the knowledge, passion and experience gained from this great institution to continue to work for the betterment of sport,” Shrock said.

MJC health education professor named United States Sports Academy 2017 Alumnus of the Year

Seasoned financial expert joins Momentum Co. Realtors

Dave Shrock, Ed.D., a professor of health education at Modesto Junior College, was named the United States Sports Academy’s 2017 Alumnus of the Year and presented the honor by Academy President and CEO Dr. T.J. Rosandich at the Academy’s 33rd Annual Awards of Sport celebration held recently in Daphne, Ala. The Alumnus of the Year Award is given to the year’s most outstanding U.S. Sports Academy graduate and the honoree must represent the ideals of sport and of the institution.

Brandt, Condit named to Oversight Committee

Burl Condit and Lee Brandt were named last week to the Measure H Citizens’ Oversight Committee for two years that expire on June 30, 2019.

The Ceres City Council made the appointment at its Oct. 23 meeting. They replace Diego Fernandez and Leonard Shepherd. Other members of the committee are Paula Redfern, Don Cool and Rafael Valencia.

Measure H was passed by Ceres voters in November 2007 to raise the sales tax rate in Ceres by a half percent to support police and fire services. The tax currently raises about $2.9 million annually to augment the budget for public safety.

The 10-year funding plan allocates $15 million for police and $15.4 million for fire suppression services.

Atwater attorney re-appointed to water board

Carmen Ramirez, 41, of Atwater, has been reappointed to the Central Valley Regional Water Quality Control Board, where she has served since 2011. Ramirez has been a partner at the Law Offices of Kelsey and Ramirez since 2014. She was an attor-

truck movements a day.

The 2001 expansion of the Santa Fe facility increased that railroad’s intermodal capacity in San Joaquin County from 120,000 to 300,000 units annually.

Currently the UP intermodal facility can “lift” — remove and place truck trailers on specially designed railroad flat cars — on some 270,000 container a year. At build-out that number will reach

730,000 lifts.

The expansion of the UP intermodal facility in Lathrop is expected to double the current workforce of 67 railroad workers to 137.

Center Point is developing a 4 million square foot business park tailor made for distribution firms that rely heavily on intermodal transport directly across from the UP facility and within Manteca’s city limits. Center Point’s future

A former MJC track and field coach, Shrock has coached at various levels for more than four decades. At MJC he coached to two Northern California Community College Championships and three runner-up finishes in track and field. He has been named a coach of the year 10 times and coached 64 junior college AllAmericans. He began his college coaching career in 1976 at the College of San Mateo in his home town of San Mateo, Calif., before coaching cross country and assisting with track and field at Stanford and San José State universities.

Shrock has served in numerous leadership roles for USA Track & Field (USATF) and has also coached internationally for USATF, having been selected to coach the men’s endurance runners at the World Indoor Track and Field Championships in 2012 in Istanbul, Turkey, and more recently as head men’s coach of the 2016 PanAm Cross Country team in Caracas, Venezuela.

Shrock earned his Doctor of Educatenants are expected to provide more than 600 permanent jobs.

That, however, is expected to be just the tip of the iceberg. The UP move will increase the demand for truck transportation in the area, plus make the immediate community — Manteca and Lathrop particularly — even more attractive to firms that are starting to do more and more cross-country ship-

For many Americans, buying a home is the single largest investment in their life. David Van Winkle’s goal is to ensure his home buyers and sellers are “elated” at the conclusion of the real estate investment process.

Momentum Co. Realtors is proud to announce the affiliation of David Van Winkle, a seasoned financial advisor, who now specializes in residential real estate.

“David brings more than two decades of investment experience to Momentum’s buyers and sellers,” said Bill Holtzclaw, Momentum’s founder and broker. “His impressive investment expertise, trustworthiness and proven reputation for providing extraordinary customer service is a perfect fit for our company.”

“I grew up in Turlock and know the town like the back of my hand,” said Van Winkle.

“If someone tells me they are looking for a certain style of house, or certain aged house, I can see it in my head. At the same time, I am constantly analyzing investments. In the process of finding the perfect home, or determining if the time is right to sell, I can offer my clients well-founded answers about interest rates, the economic cycle and housing market trends.”

Van Winkle is licensed by the California Department of Consumer Affairs, Bureau of Real Estate and is a member of the Central Valley Association of Realtors and National Association of Realtors. Before the transition to residential real estate, Van Winkle owned FSC Securities David Van Winkle Corporation, a registered investment advisory firm, where he guided clients’ financial matters for over 20 years. He started his investment career with American Express. Van Winkle has been a member of the Turlock Noon Rotary Club for 27 years and is a past board member. He has been actively involved in the community and has served on the boards of the Turlock Little League and the Stanislaus Area Crime Stoppers. He is former member of the Arrowhead Club.

ping by rail due to the short trip for trips to the intermodal facility.

The average daily truck trips to and from the UP facility would go from 954 in 2015 — the year the expansion was approved — to 2,186 at complete buildout. It would mean the average number of trucks per hour leaving or departing the intermodal facility would go from 39.75 every hour to 91. Weekend

traffic is 5 to 10 percent of work day traffic. Monday would be the heaviest day for truck movement at build-out with 2,585 trips compared to 1,056 in early 2011.

UP spokesmen have pointed out that the facility expansion ultimately will reduce truck traffic on major freeways as one freight train moving trailer containers does the work of 280 long-distance trucks

209 BUSINESS JOURNAL

12

DECEMBER 2017

NEWS

Festivities abound at Vintage Faire Mall

BY SABRA STAFFORD 209 Business Journal

The big man with the long white beard and the jolly laugh has set up camp at the Vintage Faire Mall in Modesto and along with him are a bevy of events for the holiday season aimed at bringing in shoppers.

Even in an age when online shopping is gaining traction, the Vintage Faire Mall remains a steady draw for shoppers, partly by creating a destination, rather than just a place to shop.

Each year the mall hosts an average of 9 million shoppers, with 30 percent of that number coming during the holiday season, said Marketing Manager Annie Amies.

“People have more ways to shop than ever before,” Amies said. “Top-performing shopping centers, like Vintage Faire, continue to be magnets for people, for ideas, for great experiences and great brands, as well as community gathering

places.

“Macerich shopping centers are succeeding because they are preferred places for shoppers, and the fact is they are in high demand for retailers — even as online shopping increases,” Amies said.

“Many new and emerging digitally native and storebased concepts are choosing our proven locations for their first locations or expanding brick-and-mortar presence precisely because they want to connect with our shoppers. People also love to get together and interact in social settings and successful retailers understand this. People want to be able to touch, feel and try new merchandise in ways they can’t online. Not to mention how they can be a part of something local, engaging and fun within our community with our events and nonprofit partnerships.”

Vintage Faire Mall, in partnership with HGTV,

is hosting the North Pole’s most prominent resident at ‘Santa HQ.’ Families are encouraged to partake in an interactive, digital experience at Santa’s workshop now through Christmas Eve. Guests will be engaged during their visit with Santa due to Santa HQ’s incorporation of an augmented reality environment and captivating social media experience.

Upon entering Santa HQ, kids will learn if they are on Santa’s naughty or nice list after being “scanned” at the Naughty or Nice O’Meter and spend time at an observatory to catch a glimpse of Santa’s remarkable world through special tablets. Visitors will also be able to take an “Elfie” (a photo opportunity as a dancing elf ) and much more.

Shoppers also are invited to participate in Help Through Holiday Giving by donating an unwrapped

gift at the Donation Station located at Santa HQ. All gifts will be used to fulfill Christmas wishes for local community children on the Soroptomist Community Christmas Tree, located on level two, next to Forever 21.

For those shoppers who find the perfect gift, but are dreading the thought of attempting to wrap it up neat and pretty, Vintage Faire Mall has provided an option. During the month of December, nonprofit partner, Camp Taylor, will provide gift wrapping services with donations going to support their medically supported camp for children diagnosed with heart diseases. The gift wrapping station is located across from Fred Meyers Jewelry.

To add to the festive nature, Vintage Faire Mall is hosting local churches, schools and community groups, who will share their talents and holiday spirit by per-

PHOTO CONTRIBUTED

Vintage Faire Mall continues their holiday traditions with ‘Santa HQ,’ brought to the area through a partnership with HGTV.

forming at the mall.

“There’s no better place to come together to enjoy real-world experiences than the beautiful and engaging environment that

we try to create for our shoppers and community – especially at the holidays.

We’re part of what the holidays and holiday traditions are all about,” Amies said.

HELPING VALLEY BUSINESS GROW

Deep Roots ~ Strong Branches

866.844.7500 • www.ovcb.com Oak Valley’s Dianna Bettencourt, Turlock Branch Manager, 209.633.2867 with Joe Allison Torre Reich, CEO, Rhonda Willson, Designer, and Ty Segna, Lead Designer

Oakdale • Sonora • Modesto • Turlock • Patterson Escalon • Ripon • Stockton • Manteca • Tracy

“It is a pleasure to work with the team at Oak Valley. We enjoy that feeling you get when you work with the local bank and local people who know you on a personal level and go out of their way to provide you with exceptional service and a lasting personal relationship.”

- Torre Reich Construction