209 Business Journal - JUNE 2022

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 ™

JUNE 2022

VOLUME 7 ■ ISSUE 6

TABLE OF CONTENTS

GIANELLI VINEYARDS............

2

EL SOL....................................

3

MUD MILL...............................

4

TWISTED STEM......................

5

WOLFSEN’S MEAT & SAUSAGE................................

6

OPINION..................................

7

AMAZON SUBLEASING..........

8

CANNABIS TAX.......................

9

GEMPERLE FAMILY FARMS...

10

ACCOLADES...........................

11

Valley Link gets OK to apply for federal funds V

BY DENNIS WYATT

209 Business Journal

alley Link’s first phase — the 26-mile section from the Pleasanton BART station to the proposed Mountain House station — now has wheels when it comes to being able to apply for federal funds.

The Federal Transit Administration Wednesday cleared Valley Link to enter the project development portion of

the Capital Investment Grants program needed to compete for federal funds.

“Acceptance of Valley Link in to the CIG program marks a key milestone in advancing this transformational project forward,” said Veronica Vargas, Chair of the Authority Board of Directors and Tracy City Council member. “This is the first, but critical step, in positioning Valley Link to compete for federal funding

during a time when once-ina-generation transit funding is available on the federal level.”

The clearance also means Valley Link could be eligible for upwards of $11 billion that the State of California may make available next fiscal year for transformative public rail transportation investments.

Valley Link will be extended from Mountain House to the proposed North Lathrop transfer station on Sharpe

Depot land for the Altamont Corridor Express with stations in Tracy and River Islands at Lathrop as well. That ACE transfer station will be accessed from Lathrop Road literally less than a mile form Manteca’s western city limits.

The first phase is targeted to start work in 2025 with the connection to North Lathrop shortly thereafter depending upon funding.

SEE VALLEY, PAGE 6

209 BUSINESS JOURNAL

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IN PROFILE

Jamestown home to Gianelli Vineyards

BY PAWAN NAIDU

209 Business Journal

As you drive on Highway 108 you start to enjoy the scenic views of hills and little streams along the highway. You imagine what it would be like to escape the city and nature as it was intended, without the unnecessary noise and concrete jungles. Once you get to Jamestown, you might see winemaker Cody LePretche riding his four-wheeler between the winery and tasting of Gianelli Vineyards.

It all started with Giovani Rocca, who married into the Gianelli family in the late 1800s. After his marriage, Giovani purchased a large amount of acreage just outside Jamestown – land which today is used in part for the Gianelli vineyards. In Giovani’s day his property was the site for a working cattle ranch, gold mining camp, and was a major stagecoach stop for supplies coming into Jamestown. Giovani was quite a character, and was even reported to give food and aid to the infamous Joaquin Murrieta when he passed through town.

It was passed down for generations and eventually sold to new wine lovers. The current owners are Brett and Amy Noon who closed in the summer of 2018.

LePretche looks after the vineyard and makes a large assortment of wine.

“My running joke is that we have so many wines here that I will have something that you will like,” he said. “We have 15 or 16 different varietals planted and with the blends and the champagnes, it’s like 20 different wines to try. We’re also one of the only vine to bottle estates around here, so we grow our grapes and bottle our own wine here.”

Currently Gianelli has 18 different estate grown varietals.

From Vermentino to Fiano, Primitivo to Agliancio, the vineyard has varietals that are not

PAWAN NAIDU/209 Business Journal

Gianelli Vineyards has 18 different estate grown varietals.

only uncommon in the United States, but some have never been produced before outside of Italy.

Since the pandemic, the vineyards have become not as much of a secret because people are looking for a place to come and escape, according to LePretche.

One of the biggest selling points of the vineyard is the view from the tasting room. The room sits at one of the highest points of the vineyard and there is a breathtaking view of the vineyard, mountains and more.

“That was a surprise to me,” said LePretche. “Being a winemaker you think people would come for the wine, but I realized it’s more for the experience. You still have to have good wine, but people are looking for more than that.”

Another thing that has been a revelation is the interest young people have in wine. When LePretche first started in the business he was catering to an older crowd, but lately young adults have been frequent visitors to the winery.

“It used to be the more established drinkers, but in the last five years, we have been seeing the millennials and Gen Z coming

in,” he said. “For years we would have a lot of the same faces and that’s awesome, but the last few years we’ve been seeing all these new faces and that’s awesome.”

For LePretche, he doesn’t want people to feel like they’re an expert in wine to come and enjoy.

“People don’t want to feel like they’re stupid,” he said. “You

don’t need to know all the terminology to come here, and I find people are curious to learn and they ask questions when they feel more comfortable.”

Some of their best sellers are the Montepulico and Nino. With the summer coming, the vineyard is expecting high demand for whites and champagne,

including their pomegranate champagne. Currently the tasting room is open from 1 p.m. to 6 p.m. Thursday through Sunday. In the summer Gianelli is expected to be open seven days.

The vineyard is located at 12581 Algerine Road in Jamestown.

Visit gianellivineyards.com for more information.

Cody LePretche is the winemaker at Gianelli Vineyards.

PAWAN NAIDU/209 Business Journal

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El Sol has new life in Modesto

BY VIRGINIA STILL

209 Business Journal

El Sol Restaurant is bringing light to a new Latin fusion menu with unique creations, craft cocktails, and a new modern design. The traditional Mexican restaurant vibes have left the building and now there is new life given to the restaurant that has been part of the Jasso family business since 2001.

The team behind El Sol are Owner Mario Jasso Sr., General Manager Mario Jasso Jr., Executive Chef Manuel Avina, and General Marketing Manager Reynaldo Alfaro. They each bring something different to the table that has made this new journey a success even though it has only been a few months.

Jasso Jr. has been involved in the restaurant industry all his

life and recalls washing dishes at the restaurant when he was a kid. He spent four years in the Marine Corps and when his contract was up, he returned home and got back into the restaurant industry.

The pandemic was a challenge for so many businesses and there were many casualties.

The future was looking bleak for El Sol during that time as well, which led Jasso Jr. to invest in the business and bring in fresh ideas.

Chef Avina has worked with the Mina Group out of San Francisco for many years and has worked in different restaurants including a Michelin star restaurant. He is Japanese trained, which has influenced the new menu a bit creating a Latin fusion type of cuisine at

El Sol. The customer favorites include the Baja Shrimp tacos, puffy tacos, Birria Egg Rolls, Ceviche, Tierra, Mar, y El Sol, and Karaage Chicken (popcorn chicken).

The Baja Shrimp tacos are made with two hand made blue corn tortillas, tempura fried prawns and preserved lemon that is topped with goodness making this entrée a true mouth delight.

Birria has gained popularity these days and El Sol has put their own twist on the dish serving birria Eggrolls with a salsa and a broth for dipping. This unique dish is one to try for sure.

Listed on the menu as popcorn chicken is the Japanese SEE EL

SOL,

PAGE 5

Photo contributed

New decor and a revamped menu has brought a new spark to the staff at El Sol in Modesto.

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THE MUD MILL

Tapping in to color and creativity

BY SARAH LAWSON

209 Business Journal

Located in the downtown area of Lodi, a kaleidoscope of color awaits at The Mud Mill pottery painting studio.

The business has been open for 18 years and is owned by Lodi native Vicki Snell, who decided to open The Mud Mill after previously being a preschool teacher for 11 years.

With 50 to 70 different colors of paint to choose from along with hundreds of bisque fired pieces to paint, Snell brought a must-stop color shop to the heart of Lodi.

Each studio time is two hours long to give the artist a relaxed

amount of time to paint their piece the way they would like with no rush, only costing $6 for kids and $8 for adults. After all pieces are painted, the staff at the shop dips them in their clear glaze and puts them in the kiln where they will go through a multiple day glaze fire before they are available to be picked up by the artists.

With her background in early childhood education, Snell said she also loved to show children her interest in art. While visiting her brother in Arizona years ago, they took their own children to a similar shop and studio where she explained her experience as a “magical, per-

Vicki Snell is putting her artistic talents to work at Lodi’s The Mud Mill.

SARAH LAWSON/209 Business Journal

fect day.” The doors were open, the music was blasting, art was happening and she knew that she had to bring something like it back to Lodi.

After taking an entrepreneur

class and growing her understanding about businesses and marketing plans, she opened her shop January of 2004.

“This shop is my child. Lodi was lacking in activities for kids,

I will always take pride in supplying something like this in Lodi,” Snell said.

The Mud Mill creates a fun, pleasant experience for people of all ages to come in and make cool art pieces that represent their personality.

Snell explains how the name ‘Mud Mill’ came to her after wanting a name that was unique and made people wonder what it stood for. The word Mud was chosen to represent wet clay and also create an appealing name for the boys, and Mill to represent the factory that the pieces are made in.

“I would describe the shop as creative, family friendly, and enjoyable,” Snell stated.

Along with the joyous faces of kids she sees come in and out throughout the years, she is also very proud of her staff, from high school students to past graduates, she enjoys the bright SEE MUD

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Local flower shop blossoms in downtown Turlock

BY CHRISTOPHER CORREA 209 Business Journal

Violette Deter has always been known as creative and a lover of flowers. After having years of experience with arts, crafts and design, she decided to start her own floral shop in Turlock.

Twisted Stem officially opened its doors in January 2017 on 239 N. Broadway. Deter’s daughter, April Colón, works as a manager at the shop and spoke about her mother’s passion for design.

“She has always been very creative and artistic, and she has floral design experience. Not only that, but she just loves design in general as far as interior design, circuit board design and she even designed her house. She’s just very crafty,” Colón said.

This particular shop has stood out to community members with their wide variety of foreign flowers. According to Colón, the shop has over 25 different flowers that they can mix and match with for a variety of occasions.

EL SOL

FROM PAGE 3 style Karaage Chicken that has the perfect balance of crispy on the outside and juicy on the inside and all over tastiness served with a spicy mayo for dipping.

Another guest favorite is the Botana de Ceviche made with shrimp, lemon, onion, cilantro, jalapeno, cucumber and a whole lot of goodness served

“We’re pretty upscale florists,” she said. “Our roses are really popular, especially since we get ours from Ecuador. They’re about three times bigger than the typical rose. They really make a statement when we put together, for instance, a dozen roses. We use a lot of tropical flowers since we just like being a little different.”

The shop has provided arrangements of all sizes for events like weddings, proms, anniversaries, quinceaneras and holidays like Mother’s Day and Valentine’s Day. Colón added that the shop being located across from Allen Mortuary has led to Twisted Stem being popular for funerals.

Colón explained that no project or idea has been too big or unique for the team at Twisted Stem, and they try their best to accommodate customers.

“We cater to the customer’s needs and that’s really important to us,” she said. “We don’t have any specific things that we necessarily do, just that if they have a

with corn tostadas.

The Tierra, Mar y El Sol is steak, chicken, jumbo prawns served with rice and beans making this delectable entrée one to share or not to share.

The remodel includes a new bar area where they offer craft cocktails. All juices are freshly squeezed and each cocktail is hand crafted precisely with special ingredients and garnishes making them not only very tasty but eye pleasing too.

MUD MILL

FROM PAGE 4

faces she has worked alongside of through nearly two decades in operation.

Snell has also owned Smack Pie Pizza right next door to The Mud Mill for the past eight years after opening it with her oldest daughter.

“What goes better with children’s parties than pizza?” Snell said.

Twisted Stem

Location: 239 N Broadway, Turlock Hours: 9 a.m. to 4:30 p.m. Monday through Friday, 10 a.m. to noon on Saturdays, closed on Sundays Contact information: (209) 655-9795 or twistedstemflowers@yahoo.com

design that they want, we’ll make it happen.”

Customers are encouraged to call or stop by the shop to take a look at their selection or get a quote on an arrangement. They can also go online at www.twistedstemflowers.com or reach out through email if they have a special request.

“We really want to emphasize that we’re here for the customer,” Colón added. “Literally, we get really different requests and it’s a challenge but it’s always very fun to satisfy those requests.”

“This is a modern take on traditional Mexican cuisine progressive trendy eatery featuring craft cocktail program. Catering to its diverse California culinary culture,” read Chef Avina off of the cocktail menu to share what they are about these days at El Sol. The Yonaguni is a customer favorite and is made with rum, lime, coconut, and matcha which is a powdered green tea.

“It (Yonaguni) is probably one of our most unique cock-

She also said the Lodi community welcomed her with open arms and she is grateful for the support, not only from those in that community but many that have enjoyed creating unique art pieces at her shop.

Snell has found her niche and plans to stay busy with her business venture until retirement, keeping The Mud Mill coloring the streets of Lodi for many years to come.

At 115 S. School St., Lodi, the studio is open 11 a.m. to 5 p.m. Tuesdays through Fridays;

Photo contributed

Twisted Stem has over 25 different flowers that they can mix and match with for a variety of occasions, including roses from Ecuador, which are typically much larger than other varieties.

tails and one of the most popular for sure,” said Jasso Jr. “We just want to bring something different and standout. We want to introduce people to different things.”

The Clover Club is another guest favorite that comes with gin or vodka, lemon, raspberries, and egg white foam as well as the El Mando that is made with Mezcal, pineapple, basil and citrus.

They also offer the classics

like the Paloma, Mai Tai, Cosmopolitan and Old Fashioned.

Sunday brunch is hosted from 11 a.m. to 3 p.m.

They are open for lunch from 10 a.m. to 4 p.m. on Mondays and both lunch and dinner from 10 a.m. to 4 p.m. and 6 p.m. to 11 p.m. Tuesdays through Saturdays. El Sol is located at 500 9th St Ste. K in Modesto. For more information call (209) 526-7000 or check them out on Instagram or Facebook.

and 10 a.m. to 5 p.m. Saturdays and Sundays.

Walk-ins are always welcome for freelance painting, birthday parties, bridal parties, and team building activities. The Mud Mill also hosts a popular Ladies Night on a regular basis.

While they welcome walk-ins, reservations can also be made and are especially helpful on the weekends, as those days are the busiest.

Reservations can be made by calling the shop or going on their website at www.themudmill. com.

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New ownership announced for Wolfsen’s Meat & Sausage

BY SABRA STAFFORD 209 Business Journal

Wolfsen’s Meat & Sausage, the local shop that has put Gustine on the map for decades, will soon be under new ownership.

Residents need not worry because the new owners, Andrew and Danielle Quintal, plan to keep the operations going just as outgoing owners Vance and Donna Wolfsen have for 34 years, according to the couple.

“With an excited but heavy heart we have sold our business,” Vance and Donna Wolfsen said in a letter announcing the sale. “We are handing it lovingly over to an amazing couple, Andrew and Danielle Quintal and their amazing family. These new owners of Wolfsen’s Meat & Sausage plan to keep everything the same and in time add some exciting changes to this growing business. We are also planning on helping them to succeed as much as we can.”

The business came into the hands of Vance Wolfsen when he purchased it in 1988. At the time, it was a custom-cutting locker plant which processed livestock and wild game for clients. Vance had experience in meat processing and sausagemaking on the Wolfsen ranches

VALLEY

FROM PAGE 1

The goal is to have the 42mile, seven-station rail connector between BART and ACE up and running by 2028.

The Alameda County Taxpayers’ Association as well as the Transportation Solutions and Defense Fund filed a lawsuit last month in a bid to derail Valley Link.

Key points of the lawsuit include: *The Alameda County Transportation Commission illegally shifted $400 million in 2013 Measure BB sales tax funds —

and had a vision to turn the shop at 358 South Avenue into a retail shop.

“We started a little meat case in 1990, and started making a little sausage,” Vance previously told Westside Connect. “We still did all the custom work because we only sold a little sausage.

Then we started making a few sandwiches....the sausage business grew and so did the sandwiches.”

Donna started working there a couple of years after the purchase and brought with her some sage advice about making the business a destination. And that is exactly what Wolfsen’s has become for many around the region and further beyond.

The company offers a variety of fresh-cut, vacuum-packed meat, frozen specialty products, signature sandwiches, smoked meats, jerky, marinades, and sauces. But at Wolfsen’s the real star of the show has always been the sausages. The shop features more than 60 different kinds of smoked and fresh sausages, all made entirely in house from recipes perfected over the years using fresh, quality ingredients.

A fire in 2005 caused considerable damage to the shop and had the couple questioning if it

was the end of their business.

They decided to rebuild and came back to a supporting community.

In 2018, Assemblyman Adam Gray selected Wolfsen’s as the District’s Small Business of the Year.

In the letter submitted by Vance and Donna, they honor all the people that have made their local business such a success, from the people who worked there, to the people who shopped there.

“We have been so very blessed for over 34 years to have built a successful business that we are so very proud of,” the couple wrote. “We are thankful for

all our amazing employees who have entered our family over these past years, and are so thankful to them for all of their hard work dedication and friendships.

“We are thankful for the amazing customer base that we have developed and all the wonderful friendships that have come from that. We have always considered everyone in our life as a blessing from God and you all have been a gift to us in so many ways.

“A big thank you to the community of Gustine, all our wonderful vendors that we have had the pleasure of working with

and our totally amazing customers from all over California,” the couple wrote.

The letter concludes with a note of support for the new owners coming in.

“We wish the new owners all the best and ask that our customers to please continue to support Wolfsen’s for all your specialty meats, jerky, sandwiches and all the varieties of fresh and smoked sausages.

“We will be seeing some of you around and for those we might not run into, thank you, thank you, thank you for all you have done for us. May God’s blessings be with you all.”

that county’s equivalent of San Joaquin County’s Measure K — from the long-promised BART to Livermore extension. *The ACTC has exceeded its legal mandate. *The Metropolitan Transportation Commission is illegally funding Valley Link with bridge tolls that are supposed to pay for seismic retrofits.

The ACTC, in shifting the funding, contended the BART extension was too cost prohibitive and that Valley Link would be an effective way of further reducing congestion on the Interstate 580 corridor.

Litigants noted the largest project cost element is the de-

molition and relocation of the I-580 freeway to make room for the tracks. They pointed out more than a billion dollars would be wasted tearing up 11 miles of recently built freeway, adding no transportation capacity in itself.

The Tri-Valley-San Joaquin Valley Regional Rail Authority is seeking to build the $3.6 billion commuter rail line to reduce commute congestion on Bay Area and Northern San Joaquin Valley freeways as well as improve air quality.

The move to make the ACEBART connection in Lathrop is the linchpin of an effort to create a rail transit network connecting

Merced, San Jose, San Francisco, Sacramento, Oakland, San Francisco, Manteca, Lathrop, Ripon, River Islands, Stockton, Modesto, Turlock, Ceres, and Elk Grove along with other communities along the ACE, BART and Valley Link systems is the Union Pacific Railroad’s Lathrop Wye. It also will close what is seen as a critical gap in the statewide rail system.

By connecting BART and ACE Valley Link riders will be able to transfer to other rail systems. That will tie together nearly 500 miles of passenger rail with more than 130 stations in the Northern California

megaregion anchored by San Francisco, San Jose, Oakland, and Sacramento.

“The Valley Link project has the potential to help thousands of commuters get out of traffic and more quickly back to their homes and families,” Senator Alex Padilla, D-California, said. “The San Joaquin Valley and Bay Area have become increasingly linked as more Californians live in one region and work in another. I look forward to continuing to work with the Federal Transit Administration to support this vital project, reduce pollution and congestion, and improve quality of life in the region.”

We are thankful for the amazing customer base that we have developed and all the wonderful friendships that have come from that.

209 BUSINESS JOURNAL

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JUNE 2022

OPINION

One of the biggest defects in life is the inability to ask for help.

Vol. 7 No. 6 ■ June 2022 PUBLISHER Hank Vander Veen

EDITOR Sabra Stafford

­—Robert Kiyosaki

NEWSROOM

Christopher Correa Kristina Hacker Teresa Hammond Sarah Lawson Pawan Naidu Virginia Still Kim Van Meter Dennis Wyatt

CREATIVE DIRECTOR 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

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WATER ARMAGEDDON New Melones modeling and megadroughts New Melones Reservoir is the proverbial canary in the mine when it comes to where state water policy wedded with the return of megadroughts is taking California.

Using historical hydrology data on the Stanislaus River basin between 1922 and 2019: *Based on current regulatory rules New Melones Reservoir would fall below 250,000 acre feet of storage in 3 out of the 98 years. *Based on the pending State Water Quality Control Plan and the 40 percent unimpaired flow requirement that will help boost the combined numbers of Chinook salmon on the Stanislaus, Merced, and Tuolumne rivers by 1,500 annually, New Melones Reservoir would fall below 250,000 acre feet in 20 out of 98 years.

A few things to add to the mix: *When New Melones drops to 10 percent of capacity, it is in the dead storage zone. That means the 250,000 acre feet of water is trapped behind the dam.

*Hydrologists point to data that indicates the period between the mid-1700s and the mid-1900s was abnormally wet in the area we refer today as California and the Southwest. *The return to the natural megadrought cycle punctured with a year or several strung together with normal or above average precipitation is not taken into account on models using hydrology data gleaned between 1922 and 2019 on the Stanislaus River Bason. *New Melones did not start filling until 1978. It generated its first power in 1979. *New Melones is the most overcommitted component of the Central Valley project in terms of water deliveries. The water promised in federal contacts in the 1970s was far more than the hydrology of the basin historically could deliver. *When water levels at New Melones drops below 1.2 million acre feet during critical fish flow periods on the Stanislaus River, the risk of higher water temperatures comes

DENNIS WYATT 209 BUSINESS JOURNAL

into play. Not only is there less surface area in the reservoir but the remaining water at the bottom that is released into the river is colder is subject to being “heated up”. That can raise temperatures in the Stanislaus River and reduce oxygen which in turn can “fry” fish by suffocating them. *The same issue arises when releases from New Melones drop below existing operational guidelines for fish during specific times of the year.

As sobering as this may seem to Manteca, Lathrop, and Tracy folks who — much like the rest of California — go through water as if they are sailors on a 48-hour shore leave hitting the bars between year-long deployments at sea, it is just a small part of the problematic Rubik’s Cube that is California water policy.

Experts believe megadroughts will manifest the fol-

lowing changes in California precipitation patterns: *There will be less snow and rain. *Warmer temperatures mean higher in elevation snow levels. *It also means higher elevations in winter will receive warm rains. *Warm rains on snowpacks trigger earlier runoffs. *Smaller snowpacks can lead to a higher percentage of evaporation loss. *Drier conditions in the Sierra means more of what snowpack there is will be absorbed into the ground and vegetation. *There will likely be more precipitation in the form of rain at lower elevations. *The spread of impervious surfaces — rooftops, roads, sidewalks, etc. — over the past century or so will reduce groundwater absorption in the lower parts of water basins such as the Central Valley. This is turn will work to further reduce groundwater replenishing on the levels that occurred in previous megadrought periods.

SEE OPINION, PAGE 10

209 BUSINESS JOURNAL

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JUNE 2022

NEWS

Amazon planning on subleasing space in wake of sales dip

BY DENNIS WYATT

209 Business Journal

Amazon plans to sublease roughly 10 million square feet of unneeded warehouse due to a slowdown in growth after rapid expansion during COVID-19 lockdowns.

That represents 2 percent pf the distribution center space the tight-lipped online retailer either owned or leased as of December. Based on typical fulfillment center sizes it could represent between 10 and 15 locations.

There are 44 Amazon fulfillment locations in Califor-

nia. That includes eight in the Northern San Joaquin Valley — three in Tracy, three in Stockton, and one each in Manteca and Patterson.

Two more Amazon fulfillment centers are moving forward opening in the region — a 1.08 million square-foot facility on Fulkerth Road east pf Highway 99 in Turlock where hiring is now underway and a multistory facility on Eleventh Street in Tracy.

When completed, just over 20 percent of Amazon’s fulfilment centers in California will be in the Northern San Joaquin Val-

Two more Amazon fulfillment centers are moving forward opening in the region ley — second behind San Bernardino and Riverside counties that are also known as the Inland Empire.

The fulfillment center tally

doesn’t include other Amazon facilities such as the distribution center for Prime customers in Manteca on Louise Avenue that serves the Modesto-StocktonTracy consumer triangle.

It is expected that the space being shed will be concentrated primarily in its biggest markets — California, New York and New Jersey.

According to Amazon, its worst quarter for growth in almost two decades was in January through March in this year.

Product sales were flat and online sales declined 3 percent.

It was the first drop in online

sales since Amazon started reporting the metric in 2016.

The news of Amazon moving to sublease space is not expected to severely dampen the demand for distribution center space.

Developers that cater to the market are bringing major distribution center complexes on Eleventh Street by the new Amazon site and in Lathrop by the Wayfair distribution center on the 120 Bypass to market. More concentrations of distribution centers are also breaking ground to the north of Manteca near Stockton Airport.

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JUNE 2022

NEWS

County considers cannabis tax for November ballot

BY PAWAN NAIDU

209 Business Journal

Five years after Stanislaus County implemented a commercial cannabis plan, the Board of Supervisors will consider changing the way they receive revenue from the special permit businesses.

County Supervisor Vito Chiesa of Hughson has proposed a tax on cannabis retailers. Supervisors will have to decide within the next couple of months the details of such a tax and whether to bring it to the voters on the November ballot. Currently cannabis retailers have a development agreement with the county that sees them paying an eight percent fee.

According to Chiesa, a tax would better serve retailers and simplify the assessment process. The proposal would aim to lower fees or assessments that retailers are paying now.

“We did a development agreement because of the expediency of things,” he said.

“A tax has to be passed by the people and costs money, so like most cities we just went with development agreements. I don’t know where the board stands. We have about two months to come to a decision.”

At the request of license holders, supervisors voted on May 10 to eliminate a community contribution fee that required cannabis stores to pay annual five-figure amounts to assist community programs with a focus on youth. The county is looking to amend the community contribution program.

The tax would be for the storefront and not for the growers. There are currently seven dispensaries in unincorporated areas in Stanislaus County. Under the current development agreement, Honest Choice of Denair pays the county about $5,000 a month, depending on revenue.

Chiesa is looking to move away from the development agreements mainly because of their instability. Currently, the cannabis industry is facing some uncertainty.

“It’s supposed to be based on something, but it’s really not,” he said. “Revenues go up and revenues go down. Right now, the total revenue is going down per dispensary because the market is being flooded.”

Due to decreases in demand, California cannabis growers were getting an average of just over $800 per pound in April, down from $1,580 in October 2020, but some were settling for less than $300 a pound.

209 Business Journal file photo

There are currently seven dispensaries in unincorporated areas in Stanislaus County.

Minority-owned small businesses struggled to obtain COVID relief

BY PAWAN NAIDU

209 Business Journal

State and federal COVID-19 relief programs for small businesses, including the Paycheck Protection Program, have so far distributed 5 million loans across the country. That distribution, however, has not been equal.

According to a survey by the Federal Reserve, 95 percent said their business was impacted by the pandemic. Some 78 percent reported a decline in revenue and 46 percent said they had to shrink their staff.

Nearly 90 percent of small businesses said sales had not returned to pre-pandemic levels by the time of the survey. Of those companies, about a third said it would be unlikely that the business would survive until sales recovered without more govern-

ment help. Some 53 percent of businesses expected their total sales revenue to drop by more than 25 percent in 2020.

Outcomes varied widely by race and ethnicity. Some 54 percent of white-owned firms described their financial condition as “fair” or “poor.” But that share rose to 79 percent for Asian-owned businesses, to 77 percent for Black-owned firms and to 66 percent for Hispanicowned businesses.

Local government leaders and small businesses owners discussed the challenges minority owned businesses faced during the pandemic at the National Asian American & Pacific Islander Small Business Roundtable in April. The consensus was that the minority owned businesses did not receive the adequate relief compared to their counterparts.

“One thing we noticed was that there was a discrepancy in financial literacy with the minority business owners,” said Supervisor Terry Withrow.

“That was one of the things we really worked on, helping these community members get the help they are due.”

Newly released data from the federal reserve offers a comprehensive snapshot of how access to PPP loans varied considerably based on neighborhood demographics, with small businesses in majority-white neighborhoods receiving PPP loans more quickly than small businesses in majority-Black and majority-Latino or Hispanic neighborhoods.

Congress built on the principles of the Small Business Administration’s existing loan guarantee program to distribute loans through certified lenders

(banks, credit unions, CDFIs, and, eventually, financial technology companies and nonbank lenders). SBA removed the majority of the program’s rules; requiring no fees, no credit scores and no collateral from applicants. This enabled the financial system to move a historic amount of capital in a very short period.

Implementation challenges were immediate. At a Brookings event last April, then KeyBank CEO Beth Mooney characterized the PPP as a “Herculean” public-private response whose “execution was very painful.” She reported that KeyBank, the nation’s ninthlargest SBA lender, typically does about 600 SBA loans annually, or about 50 per month.

But in the first half of April alone, they issued 37,000 loans.

Mooney acknowledged that

KeyBank’s initial outreach was to its existing customers, which means that unbanked or underbanked small businesses were not included in that first push.

The PPP also revealed capital access challenges for some small businesses due to broader shifts in the small business lending market. Over the past couple decades, large banks have been less likely to operate in the smallloan space due to low profit margins, and small banks that traditionally served local small businesses have declined due to a wave of bank consolidations since the financial crisis.

“We started building in the middle of 2020 and one thing we experienced was supply chain issues,” said owner of the Asian Market Trong Vuong.

“We are getting stuff faster now, but it was a challenge when we first opened.”

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JUNE 2022

NEWS

Gemperle Family Farms impresses in sustainability report

BY CHRISTOPHER CORREA 209 Business Journal

Gemperle Family Farms is celebrating a new milestone in their hen care, a highlight of their first sustainability report of 2022.

“In May 2021, our farms became 100% cage-free in California, which was seven months ahead of schedule. All of our hens live in aviaries and are free to fly, perch, dust bathe and participate in healthy hen behavior,” said Steve Gemperle, president of Gemperle Family Farms.

100% cage-free practices are in compliance with California Proposition 12. Prop 12 was passed in 2018, but only began to be in effect in 2022.

Mike Gemperle, vice president of Gemperle Family Farms, explained that it was a major goal for them to lead the way when it comes to safer and more humane farming practices.

“We hold a deep respect and are deeply grateful for our agricultural land and environment, and the animals, customers and employees we interact with daily,” he said.

But the farm’s safe egg pro-

OPINION

FROM PAGE 7

Because of all of that and more, the last thing California needs when it comes to investing scarce water infrastructure dollars is more dams like New Melones.

You might be able to argue to a smaller degree raising Shasta and Friant makes sense.

Such a move somewhat will expand 100 percent useable storage capacity as the acre feet in dead storage won’t increase.

But here’s the rub: Less snowpack as well as changes in the timing of snowpacks runoffs oc-

duction has not only benefited its paying consumers, as the sustainability report has offered praise to the fact that between 250,000 to 500,000 eggs are donated ever year to Central Valley nonprofits.

When it comes to their eggs, the farm is expecting to rely on more solar energy to for their egg processing facilities and to continue conserving water for their almond orchards with micro-irrigation. In their egg farming and processing operations, Gemperle has reportedly reduced their waste disposal by 95% since 2000 through increased bulk recycling of cardboard, paper, carton pulp, poly plastic, and PET plastic. Egg cartons are manufactured with recycled materials.

In terms of their almond orchards, one of the goals the farm is to transition 116 acres of almond orchards to organic production by 2025. All plastic containers used in almond farming are also recycled.

The report also stated that cover crops are planted on over 65% of Gemperle orchards and that the remaining orchards that do not have a planted cover crop cur and where the most precipitation falls may make investing in such dam expansions of traditional reservoirs the less effective way to stretch the state’s water supplies.

Two much more effective ways are more off-stream reservoirs at lower elevation levels and addressing recharging of ground water during periods when there is higher runoff.

The pending Sites Reservoir project in Colusa County — the Sacramento Valley version of the San Luis Reservoir in the San Joaquin Valley — will be much more effective at snaring runoff in megadrought conditions than more reservoirs such as New Melones.

Photo contributed

Mike, Steve and Rich Gemperle have all been essential pieces in the success of their family farm.

have resident vegetation growing between the trees. It is believed that cover crops are a sustainable source of nutrients and that the more the soil is used, the better it becomes.

“We are science-based farmers and get involved in progressive programs and research to improve our farming methods,” explained Richard Gemperle, hydrogeologist and almond

farmer. “Cover crop, hedge rows and pollinator strips are used to supply habitat for wildlife and pollinators as well as nourish our farm’s soil.”

Some of the wildlife welcomed on the Gemperle properties are owl predators to control rodents both in almond fields and outside of egg barns.

Mike Gemperle spoke about the importance of conserving

the lands they operate on.

“Our generation is merely a temporary steward of our agricultural land, air and water” he said. “They belong to future generations.”

The full sustainability report of Gemperle Family Farms can be found at www. gemperle.com/wp-content/ uploads/2022/04/GemperleFarms-Sustainability-22.pdf.

To maximize “local” storm runoff to prevent it from going into storm drains, into rivers, and into the ocean, the creation of local recharge basins and simply delivery flooding orchards as is being studied by the University of California at Davis in Stanislaus County are needed.

Local recharge basins for the diversion of excessive runoff will help enhance groundwater replenishment.

We already have a dropping water table in most places even without drought conditions.

It is almost a given we will be turning more to underground sources when surface supplies are stressed.

Yes, there is a state mandate

looking that by 2040 users within specific water basins need to return as much water in a given 12-month water year as they take out to stabilize aquifers.

Reaching that equilibrium needs to be donre much sooner and on a much more muscular basis than currently envisioned.

None of this is going to happen overnight.

That is why we all need to come to grips with not the new norm but what has always been the norm — we live in an area of the planet that for thousands upon thousands of years has been in a megadrought cycle.

It means we must address our water use for nonessentials — landscaping and such — to

reflect where we live and what Mother Nature sends our way in terms of water.

It also means becoming hyper water efficient is essential.

All the other crisis situations and problems facing the state are superfluous if we can’t figure a way to go forward with less water.

Pandemics, immigration, gun violence, greenhouse gases and more become moot issues if we lack water to grow food, sustain the environment and to simply live.

We can find a way to live with $7 a gallon gasoline. We can’t live, though, without water.

209 BUSINESS JOURNAL

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JUNE 2022

ACCOLADES

PROMOTIONS, APPOINTMENTS, HONORS, ETC. Gospel Center Rescue Mission announces new president

The Board of Directors of the Gospel Center Rescue Mission has announced the appointment of David Midura as President/CEO, filling the position left

by Wayne R. Richardson, who has led the Mission for the past six years.

Midura will be leading GCRM at a time when development and building projects are at the ready to continue fundraising efforts and construction plans.

David has worked in real estate development with a focus on apartment communities, as well as overseeing the management and upkeep of portfolios.

“I am excited to continue the successful work that was put in place by Wayne Richardson. There has been so much growth and accomplishment over the past six years under his watch, and I am honored to keep the plans moving forward,” said Midura.

Midura has been involved in GCRM for more than 20 years, serving first as a volunteer, and eventually as a member of the Board of Directors. In the community, he held a position as Trustee of the Stockton Unified School District Board of Education, and Chairman of the Rotary Club of Stockton endowment. He and his wife Kerry reside in Stockton and have a blended family of five adult children and two grandchildren.

Oak Valley Community Bank announces new branch manager

Oak Valley Community Bank announced that Jaime Tavares has joined the bank as Vice President, Branch Manager of the bank’s Turlock Branch.

Tavares joins Oak Valley with 15 years of banking experience, the past 12 as a Branch Manager in the Turlock area. In his role, he will oversee branch operations and focus on business development opportunities.

“We are excited to have Jaime on the team,” stated Julie DeHart, Executive Vice President, Retail Banking Group.

“His extensive experience in the Turlock

market, combined with his leadership and managerial skills will be a valuable asset to the bank and our clients.”

Tavares is currently a board memberof the Turlock Salvation Army and a coach at Turlock Youth Sports Foundation. He was a Bank Legend honoree for 2019-2021 with his previous employer and a 2020 Emerging Leader Program graduate.

Tavares is a lifelong resident of Turlock where he Jaime Taveras resides with his wife Casie. During his free time, he golfs, coaches youth soccer/sports, enjoys traveling and exploring new cultures, community events, and spending time with friends, family, and his three dogs.

Maria Orozco sworn in as La Grange Postmaster

Maria Orozco was sworn in as the La Grange Postmaster in May. Orozco began her postal career in Turlock in 2016 as a letter carrier. She was promoted to Supervisor of Customer Service in 2018.

“It is a privilege to be the Postmaster of La Grange. I want to ensure we serve our customers with the highest level of integrity and quality customer service,” Orozco said. “The Postal Service is continually Maria Orozco innovating to provide first-class service which can be seen in the Postmaster General’s Delivering for America 10-Year Plan.”

Orozco enjoys the outdoors, hiking, fishing, and collecting. She is married and has two brothers Jose and Edgar.

As La Grange Postmaster, Orozco

keeping businesses connected™

oversees more than 12,000 pieces of mail delivered daily while also servicing more than 400 Post Office Box deliveries.

She manages six employees, three postal routes with a population of more than 2,000.

Mariners announce Veronica Hernandez as Modesto Nuts new general manager

Veronica Hernandez has been named General Manager of the Modesto Nuts, Trevor Gooby, the Mariners Sr. Vice President of Ballpark Operations, announced.

Hernandez is the first female general manager in the team’s history and the first Latina general manager in Minor League Baseball.

Hernandez joined the Nuts organization in 2018 as the Director of Marketing, where she oversaw all aspects of marketing, including website content, social media, community outreach, ingame promotions,and more. She was promoted to assistant general manager this past January.

“Veronica’s determination, hard work and love for the sport has shined these past four years and we couldn’t be more excited to have her lead the Modesto Nuts into the future,” Gooby said.

With Hernandez’s promotion, she joins other women in the Mariners farm system who are leading several divisions within the various teams, including Arkansas Travelers GM Sophie Ozier and Ashley Schutt, the Tacoma Rainiers Director of Baseball Operations & Merchandise.

Out of 120 Minor League Baseball teams, Hernandez is now one of three Latino general managers and one of seven women who are general managers.

“I would like to thank the Seattle Mariners for this opportunity. It is a surreal moment, and I am proud to pave the way for future Latina general managers,” Hernandez stated. “I am honored to have been selected, but the hard work starts now, and I can’t wait to immerse myself in this new role.”

Prior to joining the Modesto Nuts, Hernandez worked for a handful of teams

across the country in Minor League Baseball since 2015. Throughout her sports career, she primarily focused on community relations, promotions, and event planning. Hernandez was raised in New Milford, CT and grew up skiing and playing soccer before spending four years at Ithaca College in Ithaca, NY.

Grimbleby Coleman CPAs announces new principal

Grimbleby Coleman CPAs, Inc. announced the promotion of Preston Osbourn II, CPA to Principal, bringing the firm’s number of partners to 15.

Osbourn joined the firm in 2016 as a manager in the tax department with 10 years of previous experience in public accounting. Specializing in fiduciary accounting and estate and trust planning, he quickly became an integral member of the estate and trust team, which he now leads. His passion and ambition has propelled the E&T team out of the background and into the forefront of the valuable services provided to clients as they look to their future.

O s b o u r n’s Preston Osbourn II zeal for estate and trust work has additionally led to contributions in the community, including membership in the Stanislaus County Estate Planning Council, and a stint as President of the group in 2019. He is also a Past President of the San Joaquin chapter of CalCPA and a previous CalCPA Director at the state level.

Osbourn holds a Bachelor of Science in Business Administration with an emphasis in Accounting from Fresno State University and has been a licensed CPA since 2009. He is currently pursuing his Graduate Certificate in Estate Planning and a Master of Science in Taxation from Golden Gate University.

209BUSINESSJOURNAL.COM

209 BUSINESS JOURNAL

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JUNE 2022

WATER

AIR

Top protect wildife 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 fly. We affectionately 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 overwhelming success—a success we look to repeat as we explore new ways to preserve the Port’s vital wildlife.

WILDLIFE

SOIL + SEDIMENTS

COMMUNITY ENGAGEMENT

SUSTAINABILITY Chair Anthony Barkett, Vice-Chair Michael Patrick Duffy Commissioners R. Jay Allen, David B. Atwater, Gary Christopherson, Stephen Griffen, William Trezza Port Director Kirk DeJesus

For more information: Call 855-881-8816 portofstookton.com/port-of-tomorrow