Linda Benedetti-Leal, who has been with the City of Paramount for 32 years and been City Manager since 2005, will be retiring on October 8th.
Linda joined our Public Safety Department in 1983, and eventually became Director of Community Development and Assistant City Manager before her appointment as City Manager ten years ago.
During her tenure as City Manager, she has guided Paramount through a number of innovative programs and civic improvements including the upgrading of all major City facilities. She was instrumental, for example, in launching a long-term “healthy living initiative” that saw the addition of a nature trail and exercise stations at Dills Park along the L.A. River, outdoor gyms at all other City parks, a biking/walking path along the former MTA right-of-way through town, and a new fitness park with running track on SC Edison right-of-way. (The latter, Salud Park, was paid for with state grant funds that the City won in a competitive application.)
Another major project she oversaw was the construction of a new Sheriff’s Station, which included the City purchasing the building it had been leasing for the Station as well as remodeling and expanding the site. This helped ensure that Paramount would control its Public Safety facility for the long term.
Linda saw Paramount through its worst economic crisis ever from 2009-2013, when annual revenues of $6 million per year were lost due to the double hit of the recession and the State’s elimination of redevelopment agencies. By restructuring and finding other efficiencies, the City weathered that storm without using financial reserves while being very vigilant about retaining programs or
services for residents. Paramount continues to be on sound fiscal footing.
Over the last year, she initiated the design process for a complete remodel of the City’s downtown, with new restaurants and streetscapes that will create a more vital urban core, all due to be completed in 2016. She championed arts and music to improve the City’s quality of life, as well.
As Paramount’s City Manager, Linda was very active in the California Contract Cities Association, which seeks to continually improve the quality of law enforcement services delivered under the city/county contract model.
To address unemployment in Paramount and the region, she has been heavily involved in building a coalition of local manufacturers to address challenges facing that sector of the economy, the largest source of jobs in the region, and to develop strategies to maintain or grow the sector.
She was known, too, for her humorous and creative State of the City addresses each year.
The City Council has named Assistant City Manager John Moreno as Linda’s replacement.
John joined Paramount as a management analyst in 1993. Since that time he has served as Assistant Public Works Director, Assistant Public Safety Director, Public Safety Director, and Assistant City Manager.
Eco-Friendly Companies in Paramount
The Industrial Waste Section of the Sanitation Districts of Los Angeles County presents “Good Corporate Citizen” certificates each year to businesses that are in compliance with industrial wastewater discharge requirements. While more than 1,000 companies in the county are eligible, only a few hundred actually earn this award.
This year, six of these honorees are from Paramount, including the City itself. All have shown a sense of social responsibility and protection of the environment by properly discharging their industrial wastewater, which keeps it off our beaches and out of the ocean. They deserve a big thank you.
Representatives from these businesses were recognized at the September 1st City Council meeting.
“It’s kind of fun to do the impossible.” – Walt Disney
Water Conservation Update
We are doing our part to save water in Paramount, and then some! As I mentioned last month, the State has assigned a goal for our City to cut water use by 12%, as measured against 2013 figures. If this reduction is not met, Sacramento can start imposing fines of up to $10,000 a day.
In July, we beat that number, cutting back on water usage by a hefty 19%. This is very good news, and everyone in town – residents and businesses, alike – are to be recognized for this excellent job, and thanked.
Keep it up. Or, I should say, keep that water usage down!
Picnics in the Park
Summer may be winding down, but the weather doesn’t seem to getting too much cooler. So it’s still picnic season in Paramount. Just as a reminder, when you picnic in a City park, please remember these following rules and regulations and help keep our open spaces safe, clean, and fun for everyone.
• Picnic shelter areas are available on a first come, first served basis.
• Barbecue pits are available for your use. Please dispose of hot coals in the appropriate bins.
• No alcoholic beverages or glass containers are allowed in our public parks.
• No inflatable bouncers or generators are allowed without a City permit.
• No loud or amplified music.
• Dogs are prohibited.
• No motor vehicles are allowed on a park.
• Use of fireworks are prohibited at City parks.
• Parks are closed at 8:00 p.m. (30-27.1 PMC).
For more information about recreational opportunities in Paramount, call or stop by the Community Services and Recreation Department at 15300 Downey Ave., (562) 220-2121.
T here h as N ever B ee N a B e TT er T ime T o J oi N
Join the Paramount Chamber today to reCeive your free listing in the 2016 direCtory
Mayor, Tom Hansen
Talking or
Sheriff’s Department and Paramount’s “Chief of Police,” on Thursday, September 10th, from 8:00 a.m. to 10:00 a.m. at Starbucks on the Paramount Pond.
This information session will provide residents with the opportunity to express their opinions and ask questions about public safety and law enforcement in town.
There are plenty of facts, figures, and details about distracted driving, but the California Office of Traffic Safety wants you to know the plain and simple ones:
• If something falls to the floor, pull over before trying to reach it.
Starbucks address is 16280 Paramount Blvd. for more information, please call (562) 220-2002.
• 80 percent of vehicle crashes involve some sort of driver inattention.
Back to School – Truancy Enforcement Increases
Project LEAD Sending Positive Message to Paramount Fifth Graders
• Up to 6,000 people nationwide are killed in crashes where driver distractions are involved.
• Talking on a cell phone or texting is the number one source of driver distractions.
With the beginning of the school year, here’s a review of the daytime truancy laws in Paramount. The Sheriff’s Department increases truancy sweeps when the school year commences.
Daytime enforcement focuses on curtailing the activities of minors who are not on campus during regular school hours. According to Paramount’s Municipal Code, regular school hours are from 8:30 a.m. to 2:30 p.m.
Paramount has its own dedicated District Attorney – Kelly Tatman – who works out of the Sheriff’s Station. Her duties include making sure that criminal investigations and prosecutions in town receive full attention and don’t fall through the cracks at the larger County D.A.’s Office.
Patrol deputies issue citations to minors violating the truancy laws. This sends a message to juveniles and assists in proactive efforts to curtail crime.
• Texting takes your eyes off the road for an average of five seconds, long enough to travel the length of a football field at 55 mph. Most crashes happen with less than three seconds reaction time.
It is very important for parents and guardians to know about the potential legal consequences for any minor who is found to be truant from school.
Minors who are cited for a truancy violation may face the following:
* Community service hours.
* Suspension from school.
• The act of talking on a cell phone, even hands free, can give you “inattention blindness,” where your brain isn’t seeing what’s right in front of you. You aren’t even aware that you are driving impaired. If you think you can handle both driving and talking on a cell phone or texting, you are kidding yourself and putting us all at risk.
* fines starting at $150 and going up to $450 for subsequent violations.
Tatman has been visiting a class of 36 students at Jefferson School as part of Project LEAD. The program, which goes into the classroom once a week for 20 weeks during the school year, uses volunteers like Tatman from the D.A.’s Office to teach fifth-graders about the law and help them recognize the social and legal consequences of criminal behavior.
In addition to these penalties, the parents/guardians of the cited minor may be required to accompany the minor to court and may be required to successfully complete an intervention program.
for more information, please call (562) 220-2002.
Stop Distracted Walking
Sadly, too many young people first become acquainted with the justice system as delinquents. Project LEAD is designed to avoid that scenario.
With school back in session, and kids walking to their campus each day, make sure that before children head out they are reminded of these year-round safety tips:
• Never walk while texting or talking on the phone.
• If texting, move out of the way of others and stop on the sidewalk.
Distracted driving is anything that takes your eyes or mind off the road or your hands off the steering wheel – especially texting and cell phone use, whether hands-free or handheld. Who’s doing it? Most of us. It has been estimated that, at any one time, more than 10 percent of drivers are using a mobile device.
• Never cross the street while using an electronic device.
• Do not walk with headphones on.
• Be aware of the surroundings.
A ticket for $159 for texting or talking on a cell phone is a major distraction to your wallet.
• Always walk on the sidewalk if one is available; if a child must walk on the street, he or she should face oncoming traffic.
What can you do? Most important, obey the law. It’s there for a reason. Also, do your best to eliminate distractions:
The class from Jefferson recently went on a field trip to the Museum of Tolerance. (They will also go to a local courthouse). In addition, Project LEAD’s curriculum includes speakers connected to the criminal justice system and a mock trial involving either drug selling or gun possession on campus. Students are assigned roles and argue a criminal case to a jury consisting of other students. Teachers and parents attend, too.
• Look left, right, then left again before crossing the street.
• Cross only at crosswalks.
• Never text and drive.
• Turn off your phone when you get behind the wheel.
National Night Out Recognition
• Don’t text or call someone when you know they are likely to be driving.
• Make a pact with your family, spouse, and caregivers never to use the phone with kids in the car.
• No eating or drinking while driving.
• Don’t program your GPS, MP3 player, or other devices while driving.
• Pull over and stop to read maps.
• No grooming.
• No reading.
• No watching videos.
• Try not to get too involved with pas sengers.
At the end of the program, the kids will participate in a graduation ceremony and receive a certificate of completion from the D.A.’s Office at a meeting of the Paramount Public Safety Commission.
Assistant Finance Director Retires
At its August 4th meeting, the Paramount City Council recognized the los Angeles Sheriff’s Department for being a successful partner in the City’s law enforcement efforts. The presentation was made in conjunction with National Night Out, an annual event that supports anti-crime programs across the country. From left: Councilmember Diane J. Martinez, Councilmember Gene Daniels, Mayor Tom Hansen, Sheriff’s Department lt. David Auner, Councilmember Peggy lemons, and Vice Mayor Daryl Hofmeyer.
At its August 4th meeting, the Paramount City Council recognized Terry Cahoon, the City’s Assistant Finance Director and an employee for 22 years, on the occasion of her retirement. From left: Councilmember Diane J. Martinez, Councilmember Gene Daniels, Cahoon, Mayor Tom Hansen, Councilmember Peggy lemons, and Vice Mayor Daryl Hofmeyer.
The week-long heat wave finally gave way to a surprisingly cool start for the Pathways Volunteer hospice 21st Annual Charity Golf Tournament at Recreation Park in Long Beach.
After a complimentary lunch by Piazza McDonald’s, a full field of golfers headed to the course for a 12:30 shotgun start.
Throughout the day, golfers enjoyed contest holes competing for the “longest drive”, “closest to the pin and even “straightest drive.” In addition, Selman Chevrolet, a new friend to Pathways, showcased a red Chevy Camaro at the “hole in one.”
Every year, food and beverage vendors highlight the Pathways tournament and this year was no different. Returning to lend their support were The Crooked Duck, Outback Steakhouse, Caza Tacos, AppleCare, yogurtland, Simmzy’s and Stone Brewery. Joining the seasoned supporters was beverage sponsor newcomer fireman’s Brew.
After a hearty game, golfers were then treated to a Mexican buffet in the clubhouse. Guests enjoyed dinner and
dessert while waiting for silent auction and raffle prize announcements.
More than $47,000 was raised thanks to Major Sponsors Toyota, LA County Supervisor Don Knabe, and inkind sponsors Lakewood Regional Medical Center, and Paramount Unified School District. Also, contributing to the proceeds were Birdie Sponsors Ch2Mhill and fenico Precision Castings, Gold Sponsors LA County firefighters Local 1014, The Zamboni Co., Vernola’s Towing, LA County Lifeguards, CARE Ambulance, Lakewood Regional Medical Center, Optimal hospice, Tracy high School and the Lakewood Sheriff’s Station. A big thank you also goes to Geiger Promotional Products for donating customized Drifit shirts for golfers and staff.
Best of all, proceeds from the event will support Pathways programs and services that benefit the community, free of charge! For more information on Pathways or how you can be involved next year, please contact Vickie Kaefer, 562-531-3031 email Vickie@pathwayshospice.org.
Introduction to Small Business Marketing
Wednesday, Sept. 23rd, 2015 – 10:00am - 12:00pm
Entrepreneurs often struggle to find marketing solutions that bring them business without wasting their money. in this seminar, learn about the foundation and basics of marketing and how to start developing marketing strategies to meet your goals.
Topics include: What is marketing? Why are you in business? What is your competitive advantage? Who is your ideal customer?
Course Level: Beginner – Fee: $20
From left; Terry roberts, leigh Clausen, David Olmos and Brenda Olmos
Enjoy Italian Food, Wine, and Good Company at Business Social
The Paramount Education Partnership, Inc. will be holding its next PEP Business Social on Thursday, September 24 at La Terra Mia restaurant from 4:00 p.m. to 6:30 p.m.
you will be able to spend time with fellow PEP donors or learn how to become a PEP donor and help Paramount students attend college. There will be delicious, authentic Italian cuisine to sample and a sommelier from PRP Wine International will be in attendance for a fun wine-tasting experience.
La Terra Mia is located at 8335 Rosecrans Ave. in Paramount. for more information, or to RSVP, contact Suleyma Rosales at (562) 220-2121 or by email at srosales@paramountcity.com.
City Offers Low-Cost Shuttle to Local Community Colleges
The City of Paramount’s College Bound shuttle bus offers transportation for Paramount residents to Long Beach City College (Liberal Arts Campus) or Cerritos College. The service for the fall semester has begun.
hours of operation are Monday through Thursday from 6:30 a.m. to 12:00 p.m. and then again from 3:30 p.m. to 10:00 p.m.
There are four pick-up and drop-off spots located throughout town – Orange and Somerset, Century and Orange, Paramount Park and Progress Park. Each roundtrip
– from individual bus stop, to the campus, and back again – takes about an hour. The bus stop location at Long Beach City College is on Clark Ave., just north of Carson St. The bus stop at Cerritos College is on Studebaker Rd., about a block south of Alondra Blvd.
Each trip costs $1, but you can purchase a semester pass for $25. for more information, or to purchase a pass, please call the Recreation Department at (562) 220-2121.
Good Homework and Study Habits
Now that school is back in session, here are some tips from the American Academy of Pediatrics on helping your child get back into the swing of studying.
• Create an environment that is conducive to doing homework. Children need a consistent work space in their bedroom or another part of the home that is quiet, without distractions, and promotes study.
• Schedule ample time for homework.
• Establish a household rule that the TV and other electronic distractions stay off during homework time.
• Supervise computer and Internet use.
• Be available to answer questions and offer assistance, but never do a child’s homework for her.
• Take steps to help alleviate eye fatigue, neck fatigue, and brain fatigue while studying. It may be helpful to close the books for a few minutes, stretch, and take a break periodically when it will not be too disruptive.
• If your child is struggling with a particular subject, and you aren’t able to help her yourself, a tutor can be a good solution. Talk it over with your child’s teacher first.
• Some children need help organizing their homework. Checklists, timers, and parental supervision can help overcome homework problems.
• If your child is having difficulty focusing on or completing homework, discuss this with your child’s teacher, school counselor, or health care provider.
• Establish a good sleep routine. Insufficient sleep is associated with lower academic achievement in middle school, high school, and college, as well as higher rates of absenteeism and tardiness. The optimal amount of sleep for most adolescents is in the range of 8.5 to 9.5 hours per night.
September 17th 11 a.m. – 5:30 p.m.
Falcon Square -11110 Alondra Blvd. Norwalk, CA 90650
FREE OPEN TO THE PUBLIC
11 a.m. – 12:30 p.m.
BBQ sponsored by the Associated Students of Cerritos College free food, live music, giveaways, photo booth & more
2 p.m. – 5:30 p.m. Open House
Learn about the College’s programs, clubs, and campus activities with food, live music, dance performances & giveaways
3 p.m. – 5:30 p.m.
Special Guest Performance by Poncho Sanchez
Falcon alumnus and acclaimed jazz musician Poncho Sanchez will make a special appearance accompanied by the Cerritos College Jazz Ensemble to celebrate the 60th birthday of Cerritos College with a birthday cake
(click on events/calendar)
Community
Prepare Paramount Program Installs Free Smoke Detectors
The American Red Cross kicked off Prepare Paramount with the h ome f ire Campaign in Spane Park neighborhoods on Saturday, August 29th.
Volunteers from Paramount Petroleum, Total-Western, Emmanuel Reformed Church, and CSULB Alpha Phi Omega, installed 155 free smoke detectors in 74 homes. The home fire Campaign marks the beginning of Prepare Paramount; a program to get Paramount ready in the event of a disaster. The American Red Cross is investing resources and man power for the next three years so that Paramount is one of the most prepared city’s in Los Angeles should a disaster occur.
To participate in future Prepare Paramount programs and become part of the Paramount coalition
Joseph Jackson to Speak on “Customer Service” at Paramount Chamber Networking Breakfast
Joseph Jackson is principal of Agilis Strategic Management Solutions, LLC. h e works with small businesses and nonprofits to ensure their strategies align with organizational goals. Joseph provides assistance with strategic planning, business development, market analysis and business process improvement.
A former managing consultant with CC-OPS, Joseph has a track record of working with organizations to identify effective solutions to persistent problems. Through his leadership, a critical division in the firm’s Service Delivery Business Unit experienced improved performance, reduced costs, and profitability.
Prior to that role, Joseph worked as a senior consultant with Westover Consultants. Mr. Jackson was responsible for spearheading the launch of the firm’s staff augmentation business unit and creating the marketing collateral necessary to promote the new division. his broad understanding of the process required to fill administrative, management, and technical staff positions enabled him to be effective in this role. That background was established, in part, while serving as General Manager/ Vice President Business Development for ESS – a private staffing firm.
Members in the News
As a business development manager for USA TODAy.com, Joseph was instrumental in the 1996 launch of USA TODAy’s online marketplace. his diverse skill set enabled him to contribute to the department’s growth in a number of key roles, including sales, business development, market analysis and strategic planning. As an integral part of the company’s e-commerce group, he identified growth opportunities, developed strategic partnerships and created innovative ways for the Web publication to generate revenue.
Before his entry into the e-commerce world, Joseph served on Capitol hill as a legislative correspondent for U.S. Senator Dianne feinstein. As a member of her staff, he was responsible for constituent correspondence and legislative research – among other duties. Joseph also worked as a staff accountant for Deloitte & Touche and was responsible for financial audits and the analysis and review of client financial statements.
Mr. Jackson will speak at the Paramount Chamber Networking Breakfast on October 22nd. To learn more visit the Paramount Chamber website www. paramountchamber.com and click on events, or call 562.634.3980.
El Camino College Compton Center Debate Team Wins Top Honors
Students Encouraged to Join New Speech and Debate Club this Fall
In its second year, the El Camino College Compton Center Debate Team recently took home six awards at the Pacific Southwest Collegiate Forensics Association (PSCfA) Cool-Off Tournament during the spring semester. Thirteen students from ECC Compton Center’s Communications 4 – Argumentation and Debate class participated in the rookie category competing with students from 21 colleges, including both two- and four-year institutions.
Three ECC Compton Center students were honored with Eloquent Speaker awards among a total of 10 such awards granted during the tournament. Jordan Washington received second place in the Eloquent Speaker competition, which is a cumulative ranking of the students’ debate skills during the entire tournament. Other Eloquent Speaker honorees from Compton Center include Andrea Chavez (3rd) and Zenia Lopez (5th).
“Receiving an Eloquent Speaker award was a surprise and an honor,” said Jordan Washington, a social behavior major who is hoping to transfer next fall to Morehouse College in Atlanta. “The team had agreed to approach the competition by having fun and doing our best. I didn’t expect to win because there were so many schools competing and all of the debaters were very good,” said Washington, a Compton resident
Alondra Hot Wings Opens in Pasadena
who also won silver in the team debate with his peer Zenia Lopez. “It was a great experience, and I will be able to apply the skills I’ve learned as I continue my college education.”
In the Team Debate finals, ECC Compton Center took the top three spots. Karen Suna and Canaan White won gold in Team Debate, while two teams - Andrea Chavez and Jerimiah Polk, and Zenia Lopez and Jordan Washington – won silver in the final round. Other Compton Center Debate Team members who participated in the tournament include: David Diaz, Cecilia Garcia, Toure harris, felicia hudson, Eduardo Morales, Natalie Orozco, and yesnia Uribe.
The team is coached by Liza Rios, communications instructor, who is working with ECC Compton Center’s dean of student success to establish an official forensics program. A new Speech and Debate Club has recently been established for students, which is the first step toward reaching that goal. In the future, the plan is to add a forensics course under Communication Studies where students would earn credits for participation in debate tournaments.
“Participating in the Speech and Debate Club, as well as the Argumentation and Debate class provides students with a life-changing opportunity of having a voice and using their critical thinking skills to express their arguments in the debate forum,” said Rios. “My class curriculum is designed so each student has about ten debates under his or her belt before the end of the semester.”
kazarian brothers Joey, Garo, and Danny receive a certificate of congratulations from Paramount Chamber Senior Vice President Gary Johnson at the grand opening of their new Alondra Hot Wings restaurant in Pasadena. in 2002 Alondra Hot Wings opened their first restaurant in Paramount; since that time the brothers have opened four additional restaurants one in Montebello, long Beach, Alhambra and now Pasadena.
Paramount Rotarians Get Information on Blood Donation
Red Cross account manager Diana Boyd recently spoke to Paramount Rotarians about blood donations; Did you know that every two seconds somebody in the United States needs blood? This means more than 44,000 blood donations are needed every day; the Southern California Red Cross region collects nearly 10,500 whole blood donations and more than 500 platelet products every week to meet the demand.
For more information or to make a donation contact: Diana Boyd, (310) 570-3537 Email: Diana.Boyd@redcross.org, Or Visit website:www.redcrossblood.org.
Paramount rotary President Dean Mouren-laurens and Diana Boyd.
Seniors: Filling Medicare’s Gaps to Protect Assets.
By Maria F. Galli State Farm Insurance
562-817-5620
Whether you’re approaching your golden years or are experiencing them, it’s important to be aware of how your healthcare options change at age 65.
Many believe that Medicare will pay for all of their medical expenses. Unfortunately, it won’t. There are several ways to help protect your assets. you may want to consider a Medicare Supplement Insurance policy (sometimes referred to as a “Medigap” policy) to help lower your out-of-pocket expenses. It’s a policy specifically designed to fill some of the gaps in your Medicare coverage.
Because Medicare Supplement Insurance is strictly regulated by both federal and state governments, only 10 standardized plans are offered, and not all plans are offered in every state. These plans pay most, if not all, Medicare coinsurance amounts.
Medicare supplement policies are labeled with the letters “A” through “J.” Plan “A” gives you a basic benefit plan. Plan “B” provides additional benefits, and so on. Additional benefits may include: co-insurance for skilled nursing care, preventive care,
Positively
Paramount Civic Center
and emergency treatment while traveling in a foreign country, doctor’s charges over the approved Medicare amount, prescription medicine, or at-home recovery charges. Insurers choose which plans they will market (unless a state dictates otherwise). A complete statement of coverage can be found in the policy itself. you will need to choose which plan best suits your needs and budget.
While the plan coverage offered by insurance companies is identical, no two insurance companies are alike. So, it’s important to take a close look at the company’s financial stability and level of customer service when making your decision. Once you’ve purchased a policy, you’ll be pleased to know that as long as you use a Medicare-approved physician, you may not need to submit any additional paperwork to Medicare or your supplemental insurance carrier.
Be aware that neither Medicare nor a Medicare Supplement Insurance policy will cover all costs associated with long term care assistance if you’re no longer able to care for yourself. So, it’s best to consult an insurance professional to discuss all your insurance needs and in most areas, you may contact your local insurance agent for more information on your financial needs as well.
Paramount Places!
Paramount’s Civic Center Plaza is a beautiful botanical oasis, a one-acre garden-like public space with walking paths, benches and dynamic fountains. It links City hall, Suburban Medical Center and the County Library as a cohesive whole while opening up a larger downtown corridor tying the Pond and the Iceland skating rink together. A special feature is a small park area around the historic “hay Tree,” which dates back to Paramount’s days as the leading dairy producer in the state. City hall, 16400 Colorado Ave. Bianchi Paramount Theatres
Eleven state-of-the-art luxury theatres. featuring stadium seating, digital sound system, and a meeting/ banquet/party room 7770 Rosecrans Avenue at Paramount Blvd.
Paramount Iceland
home of the world famous Zamboni Ice Machine. featuring one of the largest indoor ice skating arenas in existence. An historical landmark, with a rich tradition as an Olympic training facility 8041 Jackson St.
Paramount Pond
A decorative, restful public plaza, featuring a bronze sculpture garden with nearby coffee house and eateries
Corner of Paramount Blvd. & Jackson St.
Paramount’s Outdoor Art Museum
9 By 9 By 9 ...................................Spane Park, 14400 Gundry Ave.
Boxes .................................Corner of Downey Ave. & Jefferson St.
Come on Dad .............................................. Paramount Pond, corner of Jackson St. and Paramount Blvd. Crack the Whip ........................................... Paramount Pond, corner of Jackson St. and Paramount Blvd. defiance .............................................................Southwest corner of Paramount Blvd. and Rosecrans Ave. Delineation
1031 Exchanges
By: Matt Wagner – GM Properties (562) 696-0200
A 1031 tax deferred exchange is a transaction of “like-kind” property-for property exchange that will allow a taxpayer to defer the capital gains tax that would normally be due on the sale of an asset. 1031 exchanges are typically used in real estate only; however, they can be used for other types of assets as well. A 1031 allows real estate investors to defer the capital gains on the sale of a property as long as they re-invest the proceeds from the sale of the first asset, which is referred to as a downleg. The property that is then purchased from the proceeds of the downleg is considered the upleg in the 1031 exchange. here is an example. fred owns a piece of land as an investment that he purchased a few years back for $50,000. Today, he sells the land for $100,000. his basis for tax purposes is the original $50,000 purchase price and he would realize a $50,000 gain from this transaction. If he did not utilize a 1031 exchange, fred would owe Capital gains taxes on the $50,000 that he gained from this transaction. If Fred utilizes a 1031 tax deferred exchange, he would have to reinvest the entire $100,000 into a new “like-kind” investment and then he would not owe any taxes on the transaction at this time. If for whatever reason fred does not re-invest the entire amount of gains, he would owe Capital gains taxes on the difference of what was realized in the gain and what was not used in the upleg purchase. It is important to remember that a 1031 exchange is not a tax free exchange but a tax deferred exchange, as Fred will ultimately pay the Capital Gains tax on the transaction gains once the asset is sold and the proceeds are not reinvested into a “like-kind” property. In theory, one can keep doing a 1031 exchange on “like-kind” assets until your death and your heirs would then inherit your investment property for fair market value and they can sell it for little or no capital gains taxes due. Very cool!
here are the General Rules of a 1031 Exchange:
• A 1031 is a tax-deferred exchange, not a tax-free exchange.
• The property exchanged (sold) must either be held for investment or used in a trade or business.
• The properties exchanged must be like-kind. IRS defines “likekind” very liberally.
• Some types of properties do not qualify for 1031 exchanges. Ex. Personal use property.
• The amount of capital gains that you defer from the sale of the downleg will reduce the basis on your upleg property.
A 1031 exchange can be a very profitable tool when utilized correctly in Real Estate investing. If you have interest in this type product, contact your local Commercial Real Estate broker, attorney or 1031 exchange specialist. Good Luck!
Tips for Growing Your New Business
Organizational development and leadership competencies are foundational to newly developed business entities while working through transitions requiring periodic assessment and adjustment to original processes as business increases. There are many suggestions for ways to solidify, stabilize and grow a new business; choose and integrate ideas helpful in moving your company forward starting from where you are today!
1. REGULATION AND COMPLIANCE: Join organizations, attend seminars, learn and know areas in which your organization has compliance requirements. As you hire employees, do you have required posters, new hire forms, pamphlets, policies and/or an Employee h andbook? A few resources for h uman Resource compliance are: SBEAC (San Gabriel Employer Advisory Committee), California Chamber of Commerce, S h RM (Society for h uman Resource Management), PI h RA (Professionals in h uman Resource Management), N h RA (National h uman Resource Association) and many, many more). BLR.com (Business and Legal Resources) provides free tools and resources in addition to those members can access through paid subscriptions. Does your company use chemicals as part of the process in developing new product? What are the OS h A (Occupational Safety and h ealth Administration) requirements related to your industry? Is your organization required to have an IIPP (Injury and Illness Prevention Program) or a Wellness Program? Identify regulations specific to your industry and establish compliance processes along with educational tools necessary to maintain current knowledge with on-going compliance.Stay current through professional subscriptions and memberships, attendance at conferences and/or formal classes.
2. ORGANIZATIONAL OPERATIONS: Establishing common goals and strategic plans in order to achieve those objectives by working with all members of the management team to define departmental responsibilities, procedures, budgets, and logistics for each specific area with timelines, checks and balances for assessment, realignment and/or restructuring as necessary. Operations professionals move the organization forward by
developing a plan, monitoring results from each department for efficiency, wise use of available resources, timeliness and revision, if needed while coordinating time sensitive deadlines between all departments.
3. h IRE T h E RIG h T PEOPLE f OR T h E RIG h T POSITION: h aving the right person in the right position is the most valuable asset of an organization. When scheduling candidates for interviews, select applicant’s with demonstrated competencies aligning with required responsibilities related to functions and account abilities of the open position. During the interview, provide opportunity for the candidate to tell you about their experience, training, motivating factors that lead them to apply for this position, their willingness to learn and develop stronger or different skill-sets as the business grows.
4. RETENTION: Retaining the employees who make up your workforce often lead to increased productivity as employees performing specific tasks are highly motivated to streamline processes as they discover more efficient methods for many tasks. In addition, retention reduces cost of recruiting and hiring processes, eliminates the learning curve for all new employees and strengthens the organization.
5. ACTIVELy LISTEN: Actively engage and listen to all stakeholders: employees, customers, vendors, and the community. If a different packaging, processes or software is recommended or suggested by any stakeholder, listen and evaluate. People who work at specific tasks are often the most reliable resource for bringing about positive and innovative change while increasing efficiency as well as reducing costs.
6. NETWORK: Introduce yourself, your business, product and/ or service through social media or through personal contacts. Create a contact list of people you believe are important to your organization’s growth; call and invite them to meet with you to discuss ways in which you might partner to meet commonly shared goals. Subscribe to local online newspapers, calendar of events and attend meetings, conferences, fundraisers offering the opportunity for you to introduce yourself, prod -
uct, services and organization into the community. Volunteer time and donate product or services in areas of interest to you and/or your stakeholders. Get involved and become an active and contributing member of the community. Build relationships!
7. MINDSET: Using Webster’s online dictionary, Mindset is defined as “a habitual or characteristic mental attitude that determines how you will interpret and respond to situations”. Developing a growth mindset creates positive influences and motivational attitudes necessary in all areas of life: business included. There’s so much to be gained by understanding how one can develop a positive mindset. Check out Mindset; The New Psychology of Success (December 26, 2007) written by Carol Dweck.
8. TRUST AND TRUSTWORT h INESS: Employers want to trust employees, customers, vendors and others with whom they interact in their daily business activities. Likewise, employees, customers, vendors and others want to trust those with whom they work and conduct business. In order to gain trust, one must be trustworthy. Do your actions, behaviors and decision making align with your core values? One can really control or manage one’s self, as it is only ourselves that needs to develop identity; that is, one of trustworthiness. Identity is fluid as “identify flows into activity, 2) behavior flows from nature, and 3) transformed identity leads to transformed activity.
“Leadership formation is the careful and intentional integration of identity and performance, being and doing, essence and activity” (Mannoia, K.W. (2006). The integrity factor: A journey in leadership formation. Vancouver, BC: Regent College Publishing. , p. 82).
9. SERVANT LEADERS h IP: Servant Leadership is one of several leadership styles - one that promotes growth of individuals as well as the organization. As defined by Robert Greenleaf “A servant-leader focuses primarily on the growth and well-being of people and the communities to which they belong. While traditional leadership generally involves the accumulation and exercise of power by one at the “top of the pyramid,” servant leadership is different. The servant-leader shares power puts the needs of others first and helps people develop and perform as highly as possible.”
10. h OW TO C h ANGE BE h AVIOR: Dr. Marshall Goldsmith wrote the theory about how to change behavior. Along with that, he offers a wealth of information for all of us - especially those starting new business ventures: Check out the last tip on video for this publication from Dr. Goldsmith.
Special thanks to: Marty Stewart, MA for her content contribution to this article. Marty specializes in organizational leadership and is part of the SBDC team hosted by Pasadena City College.
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