Business Connections

BUSINESS CONNECTIONS

A joint publication between the Santa Maria Times and the Santa Maria Valley Chamber of Commerce for and about business in the Santa Maria Valley.

www.santamaria.com

www.santamariatimes.com

Winter 2019 Edition

OPINION

From the Chamber

The Crossroads shopping center in Santa Maria is owned by Westar Associates. The property management company says despite regional competition and the increase in online shopping trends, they continue to see growth in the retail market in Santa Maria, with new tenants slated to come into Crossroads Shopping Center in late 2019 and early 2020.

Open for Business: Increased Development Poses Challenges and Opportunity for Local Retail Market Santa Maria is open for business. In recent years, the city has seen an influx of new commercial buildings and new businesses come to town.

“Santa Maria is on a great growth trajectory, and our new retail additions in recent years have sparked the interest of other retailers,” said Suzanne Singh, Economic Development Director for the Santa Maria Valley Chamber of Commerce. “ They see the opportunity here, and the need to be involved and benefit from that growth.”

Retailers see the opportunity here, and the need to be involved and benefit from the growth Santa Maria is experiencing.

Suzanne Singh Economic Development Director, Santa Maria Valley Chamber

Many businesses and property management companies have already begun to experience the benefits of this growth.

Ally Green is the Vice President of Marketing for Westar Associates, the property

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management company for The Crossroads shopping center and College Square shopping center in Santa Maria. Green says they have seen an increase in customers visiting Santa Maria to shop, which has benefitted their shopping centers.

“The enhanced retail development along the Betteravia intersection continues to attract consumers across the Central Coast,” Green explained. “The new additions, such as Lowe’s and Costco, to the already existing retail hub has made The Crossroads shopping center and surrounding commercial developments more valuable and attractive to prospective tenants.”

Green says the growth of the housing marketing in Santa Maria has also been a benefit for retail.

“As the housing market continues to grow in Santa Maria, so will retail development and redevelopment,” Green said. “While this may create more competition in attracting prospective tenants, the commercial growth in the trade area will attract new businesses that may have not have previously considered the Santa Maria market.”

While Santa Maria’s growth has brought opportunities for local retail, business owners and property managers are grappling

with challenges presented from the rising popularity of online shopping.

“The increased presence of e-commerce in the retail industry and changes in consumer spending habits have required tenants to increase their omnichannel marketing efforts and direct shipping services in order to remain competitive,” Green said.

Westar Associates have seen this result in many of their big box tenant decreasing square footage requirements and opting for smaller retail space.

“We’ve had to become more aggressive in attracting traditional anchor businesses or be willing to consider non-traditional retail units in big box vacancies, such as co-working concepts and entertainment venues,” Green explained. “In addition, several medical concept businesses are moving to retail shopping centers due to the customers’ increased desire for a more convenient experience both closer to home and other businesses that they frequently visited.”

Singh, who works with many Continued on p. 2

Construction continues on a new building in The Crossroads shopping center in Santa Maria. A portion of the 5,500 square foot building will be home to Krispy Kreme Donuts, set to open in late 2019.

One of the most important functions of the Chamber is to be a Champion for local businesses and a Convener of leaders. Those roles lead us to be active in advocating for good public policy.

The Chamber monitors proposed legislation and regulatory proceedings and comments on behalf of the business community when appropriate to ensure decisions are well informed as to their impacts (for good or ill) on the ability of businesses to operate successfully.

The Chamber regularly updates our members about proposed legislation/ regulations that will impact their operations or the general business environment.

As we represent local employers in this arena, we seek to ensure elected officials and their staffs understand and consider the impacts of their decisions on the economic health of our community.

To that end, the Chamber’s Board recently took steps to add additional structure to our advocacy work.

Business & Government Roundtable The Chamber recently launched a new Business & Government Roundtable to lead our work in political/regulatory advocacy. It is a forum for public and private leaders to explore issues and alternatives.

The Roundtable’s develops an annual policy statement document (see below), makes recommendations to the Chamber Board on local or state ballot measures, and meets with key government representatives to receive updates and provide feedback.

Public Policy Framework We initially identified six areas of emphasis to guide our advocacy work.

We believe that if the community gets these issues right, businesses will be able to successfully operate and grow, leading to economic vitality, ensuring Santa Maria is the Central Coast community of choice to live and work.

The initial areas of emphasis include Business Competitiveness, Community Development, Employee Relations, Environment, Infrastructure, and Workforce Preparedness/Education.

The full public policy framework can be found on the Chamber’s website at www. santamaria.com/....

Chamber members interested in serving on the Business/Government Roundtable, or organizations that wish to present to the Roundtable should contact Glenn Morris at the Chamber.

Glenn Morris, President/CEO, Santa Maria Valley Chamber of Commerce

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BUSINESS CONNECTIONS

Santa Maria Times Santa Maria Valley Chamber of Commerce Winter 2019 Issue

SANTA MARIA VALLEY VISITORS BUREAU

Strategic Partnerships Play a Key Role in the Success of Local Tourism The Santa Maria Chamber of Commerce and Visitors Bureau actively works to support local tourism through a strategic marketing plan targeting out-ofarea visitors. The City of Santa Maria’s Transient Occupancy Tax (TOT) generated over $3.4 million in total receipts in the 2018/2019 fiscal year (FY). Although we use TOT to gauge the success of local tourism there are many key performance indicators that convey the economic impact of local tourism.

With a global marketing plan that is constantly shifting and changing, Visit California has become a significant partner to the Santa Maria Valley tourism program. Additionally, through the partnership with the Central Coast Tourism Council (CCTC), Santa Maria Valley continues to work to stay front-of-mind in a congested market space.

Detailed statewide travel impacts estimate that California saw $140.6 billion in travelrelated spending which translates to 1.2 million travel related jobs and $11.8 billion in state and local tax revenue. Utilizing the platforms afforded to us through

Jennifer Harrison Director, Santa Maria Valley Visitors Bureau

our relationship with Visit California and CCTC we’ve had an opportunity to amply our voice through programs like Restaurant Month and Craft Cocktail Contest, the Santa Maria Wine Trolley, event listings, media events and familiarization trips, content submissions and far more. These yearly collaborations with Visit California and CCTC are meant to bring traffic and awareness to the Santa Maria Valley.

California saw $140.6 billion in travel-related spending which translates to 1.2 million travel related jobs and $11.8 billion in state and local tax revenue.”

The Visitors Bureau annually publishes a series of print pieces that can be used by visitors or potential visitors to research our area, plan their trip, and discover the many activities, events, and

The Santa Maria Valley Visitors Bureau places Visitors Guides in California Welcome Centers located in Pismo Beach and Merced. Our marketing brochure is distributed at nearly 700 locations in the San Luis Obispo, Santa Barbara, Ventura, Los Angeles, San Fernando Valley and Bakersfield regions. services that exist to make a visit to the Santa Maria Valley a unique and rewarding experience.

Tourism collateral pieces are distributed at the Chamber of Commerce Visitor Center, at local hotels and tourism related businesses, public agencies, and other high traffic areas around the

BUSINESS/GOVERNMENT

community.

Additionally, the Visitors Bureau places Visitors Guides in California Welcome Centers located in Pismo Beach and Merced. Welcome Centers are Visit California’s concierge service and are found in high traffic communities with

locations throughout the state. Our marketing brochure is distributed at nearly 700 locations in the San Luis Obispo, Santa Barbara, Ventura, Los Angeles, San Fernando Valley and Bakersfield regions.

Travel and tourism are one of America’s largest industries and one that is growing in importance in our community and region. Our Visitor Center is open five days a week and provides assistance to visitors, groups and event planners. To ensure information is available 24/7, the Visitors Bureau distributes visitor information from a variety of places throughout Santa Maria Valley and offers information online through a new visitor website, barbecue blog, association listings, and visibility on social media platforms including Twitter, Facebook, Instagram, Pinterest, a YouTube Channel and Flickr.

If you are interested in partnership opportunities available through the Santa Maria Chamber tourism program please contact Jennifer Harrison, jennifer@santamaria.com

FEATURE ARTICLE

Concerned About Affordability, Voters Oppose New Taxes California voters have high expectations that their elected leaders address housing, climate change, homelessness, education and infrastructure issues.

Continued- Open for Business Continued from p.1 local businesses looking to open in Santa Maria or grow their existing business, says she has seen businesses begin to adapt to challenges posed from the growing popularity of online shopping.

“Most of the larger retailers have an online component to their current business plan,” Singh said. “Our local retailers are moving in that direction and will eventually be as robust in the online marketplace as the larger retailers to stay competitive.”

Though local retailers are facing new challenges, business continues to boom in Santa Maria. Wester Associates recently developed two new building pads at The Crossroads shopping center located along South Bradley road.

The new development consists of

a 5,500 square foot pad with a drive thru, and a 16,000 square foot building pad for lease.

“Krispy Kreme will occupy 2,760 square feet of the 5,500 square foot building pad and is projected to open Quarter 4 of 2019,” Green said. “Businesses opening in The Crossroads shopping center in 2020 include Work World and Golden Corral.”

In a market competing with online retail and regional competition, Santa Maria remains open for business.

“Santa Maria’s population has grown and we continue to be the largest city along our region of the Central Coast,” Singh said.

“That growth will continue, and with population growing, more retail and services will follow.”

Upcoming Chamber Events Cost of housing and housing availability are two of the major issues California voters are concerned about, according to a recently released CalChamber poll, The People’s Voice, 2019.

Voters are anxious about the cost of living in California.

One of the not-so-surprising consequences of this anxiety: they are reluctant to embrace new taxes to pay for even popular ideas, according to a recently released CalChamber poll, The People’s Voice, 2019.

Nine of 10 voters agree that “earning enough to enjoy a middle class lifestyle is becoming almost impossible in my part of California,” with 52%—an absolute majority—strongly agreeing with that statement.

This sentiment is especially pronounced in the Central Valley, Inland Empire and among renters.

The bellwether for California tax attitudes is Proposition 13, and after more than four decades, California voters maintain their attachment to this historic reform.

Eighty percent of voters have a favorable view of Proposition 13, including 46% who are strongly favorable. Three-quarters of renters have a favorable view of Proposition 13, as do young people and Democrats. Strong support for Proposition 13 has remained consistent for many years.

Property taxes are not the only forbidden territory marked out by voters. Recent interest in applying the state sales tax to services used and paid by businesses is not

shared by voters.

Voters were offered a choice: On the one hand, California needs to modernize its tax code and extend the sales tax to cover business-to-business services so that everyone is paying their fair share of the costs of running the state.

On the other hand, California is too expensive and highly taxed already. We should not extend the sales tax to services because consumers and businesses will just end up paying more and making less.

Nine of 10 voters agree that “earning enough to enjoy a middle class lifestyle is becoming almost impossible in my part of California.”

By a 71% to 39% margin, voters rejected extending the sales tax to business services.

Opposition was widespread in all demographic groups: renters and low-income groups were strongly opposed; Democrats opposed by 2 to 1.

A follow-up question

suggested that a sales tax on services would reduce state budget volatility, as some of its supporters have argued.

That argument was rejected overwhelmingly; voters preferred the state simply live within its means, and save tax money for a rainy day.

Voters continue to strongly agree that climate change is happening now and that the state of California must act now. But that agreement does not extend to taxing cars and gasoline to achieve those goals.

Convincing majorities oppose (60%, with 35% strongly opposed) increasing taxes on automobiles that run on gasoline or diesel to discourage their use.

A similar majority oppose (58%, with 35% strongly opposed) increasing taxes on gasoline or diesel to discourage use of internal combustion engines.

California voters have high expectations that their elected leaders address housing, climate change, homelessness, education and infrastructure issues. But they also demand solutions that go beyond the predictable and expensive tax-and-spend template.

Article courtesy of CalChamber: www.advocacy. calchamber.com/

Every Friday: Build Your Business (BYB) Breakfast 8:00am - 9:00am, Denny’s Restaurant, Santa Maria December 13, 2019: 2019 Freedom Monument Veterans Memorial Ceremony and Fellowship Luncheon 11:100am - 1:00pm, Abel Maldonado Youth Center, Santa Maria December 8, 2019: Chamber Christmas Social Stay tuned - details to come!

The Chamber will be closed for the holidays December 24th through January 1st, and will resume normal business hours Janaury 2, 2020.

For a full list of upcoming events from the Santa Maria Chamber and local community, visit www.santamaria.com.

Stay Connected with the Chamber: Visit: 614 S. Broadway, Santa Maria Call: (805) 925-2403 Email: info@santamaria.com Website: santamaria.com Facebook: facebook.com/SMVCC Twitter: twitter.com/SMVCC Instagram: santamariachamberofcommerce Email List: bit.ly/SMVCCMailingList Text Message Alerts: Text “CHAMBER” to 33222

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Wednesday, November 27, 2019 | 3

BUSINESS CONNECTIONS

Santa Maria mayor talks economic growth, 2020 census RAZI SYED

rsyed@leecentralcoastnews.com‌

‌Santa Maria city leaders touted a low unemployment rate and planned business openings but noted financial challenges remain, particularly from the city’s looming pension obligations.

The pronouncements about Santa Maria were delivered by Mayor Alice Patino and City Manager Jason Stilwell during the 2019 State of the City address in October.

Held at the Radisson hotel, the annual event is sponsored by the Santa Maria Valley Chamber of Commerce.

“Now Santa Maria continues to have steady progress to retain businesses,” Patino said. “This is really important because if we don’t have the businesses, we don’t have sales tax and we cannot provide services in the city of Santa Maria.”

Challenges in the near future, the mayor said, include high housing prices, ensuring an accurate count during the 2020 census and FRANK COWAN, CONTRIBUTOR‌ the city’s rising costs to provide Mayor Alice Patino talks about the many new projects and developments in the city during the annual State of promised pensions. the City address in October.

Economic development‌

New business development, particularly at Enos Ranch, has contributed to about 1,000 new jobs in the past five years, Patino said.

“It’s a regional shopping destination bringing sales tax from out of town,” she said. “I was in Costco one day and the mayor of Solvang was in there saying, ‘I’m not going to Goleta anymore, I’m going to shop here.’

Upcoming development within Enos Ranch includes several car dealerships, a 318-unit apartment complex for the Towbes Group, a park and community center and an elementary school.

“It wasn’t too long ago that the Towbes Group opened their apartments on (Blosser Road),” she said. “We hadn’t had market-rate apartments in this community for 25 years, and now we’re seeing more and more apartments.”

CoastHills Credit Union’s new corporate headquarters at Enos Ranch is nearing completion, which will result in jobs being transferred to Santa Maria.

“They already are moving people here from Vandenberg Village and hope to have back-office employees relocated by the end of the

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year,” she said.

The second floor of the new CoastHills headquarters also will be home to A.T. Still University’s physician assistant program, which will welcome its first class of students next summer.

“We applaud A.T. Still University for choosing Santa Maria,” she said. “I can remember having a meeting with them way back when with the whole council. We kept thinking, ‘I hope they come to Santa Maria.’”

Elsewhere in the city, Hobby Lobby, Krispy Kreme, a four-story Hampton Inn and a mixed-use project at the corner of Skyway Drive and the Orcutt Expressway are at different stages of development.

“At the Crossroads center we have Krispy Kreme — a lack of fattening donuts in our community,” Patino joked. “They’re supposed to open in the middle of November.”

Nearly 1,500 building permits valued at $70 million have been issued in the past year, she said.

Stilwell also touted the active job market in Santa Maria, noting unemployment had reached 3.8% in September. Two years ago, the rate stood at 5.1%.

Measure U and future city projects‌

ment and four for the Santa Maria Public Library.

“This is unprecedented here in Santa Maria,” she said. “This is the equivalent of hiring a decade’s worth of new positions all in one year. We could not do that without people in Santa Maria voting for and supporting Measure U.” The new library positions will allow the library to open on Sundays starting in January.

Plans also exist for building the city’s new landfill and a police shooting range at Los Flores Ranch, just south of Santa Maria city limits, Patino said.

The mayor also noted the city is pursuing a slew of energy-efficiency projects, including installing new lighting at city parks, replacing aging HVAC units and building an array of solar panels in the eastern part of the city.

The total cost of the projects is estimated at $30 million. The projects will be developed with borrowed funds, with the savings and increased revenues covering the repayment cost.

During her remarks, Patino thanked city residents who voted for an extension and rate increase for the Measure U sale tax last November.

“I told people, ‘You may not want to vote for anything on the ballot that says ‘increase your taxes,’” she said. “Don’t do it at the state level, but certainly do it for Santa Maria. We know where the money is going, and the five (council members) know how to spend it well.”

Last November, city voters approved the extension and rate increase of Measure U with 74% of the vote. The measure went into effect April 1 when the city’s tax rate rose from 8% to 8.75%.

“The one-cent general-purpose sales tax increases and maintains funding for public safety, services for youth and improves our quality of life in Santa Maria,” she said.

Using Measure U funds, the City Council this year signed off on hiring for 57 new positions. Of those, 15 will be in the Police Department, Challenges ahead‌ 13 in the Fire Department, four in One of the immediate chalthe Recreation and Parks Depart- lenges facing city officials is de-

vising a plan to ensure an accurate count in the 2020 census.

The count, performed once every 10 years, will inform how much the city receives in federal funds for essential services like schools and transportation.

“Here, in Santa Maria, we do have clusters of communities that are hard to count, especially children under 5,” Patino said.

“Each undercounted person means $2,000 in funding lost per year.

“If 1,000 kids are not counted in Santa Maria — and that could very well happen — over 10 years that will be a loss of $20 million to the community.”

Patino said the city has six especially hard-to-count census tracts but noted city officials are developing a strategy to ensure all those residents are counted.

During her remarks, Patino expressed frustration with state lawmakers and officials, who she said are stripping local governments of their authority.

As an example, Patino pointed to a state law recently signed by Gov. Gavin Newsom that will supersede a city ordinance requiring homeowners wishing to build accessory dwelling units or standalone living spaces to live on-site alongside their tenants.

“We thought that protects the integrity of the neighborhood,” she said. “However, our state, in its great wisdom again, said that doesn’t have to happen. Little by little, Sacramento keeps taking away the power from local governments.”

Patino also faulted Sacramento for the state’s high housing prices, saying strict environmental regulations on development have contributed to the rise in prices.

Stilwell said the city will face ongoing issues to maintain a balanced budget, primarily due to mounting pension costs.

The city’s pensions costs for the 2019-20 fiscal year rose to $17.6 million — a $4.4 million increase from the previous year.

City officials expect annual pension costs to continue to rise for the next five years at least.

Razi Syed covers Santa Maria City Government for Lee Central Coast Newspapers. Follow him on Twitter @razisyed

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BUSINESS CONNECTIONS

Jorge Diaz looks at a cut of beef from Harris Ranch in his market, Carniceria El Matador.

Co-owner Arcelia Diaz comes in to work for the day in the Diaz family market, Carniceria El Matador.

Jorge Diaz unloads some fresh avocados from Mexico.

FRANK COWAN PHOTOS‌

Jorge Diaz, right, completes a transaction with customer Julian Ojebo, center, as Esmeralda Cuevas left looks on in Diaz’s market, Carniceria El Matador.

Shop local, give back Experience offers community benefits not found anywhere else

JENNIFER BEST

Contributing Writer‌

‌M

ark Steller pours local wines, sits on the local school board, donates to local nonprofits. Arcelia and Jorge Diaz buy local produce and local beef.

Both market owners employ local residents. None of it would be possible without customers walking into their markets and buying products off the shelf.

“We’re local people providing for our community, and hopefully people continue to come support us so we can continue to support the community. It goes back and forth,” said Jorge Diaz, Jr., who works at his parents’ Carniceria El Matador, 101 N. Depot #B. While online shopping provides quick, easy purchases, shopping locally offers hands-on experience and contributes back to the local economy by providing jobs, donations to charity and supporting other locally owned businesses.

“E-commerce can’t pour you a glass of wine. It can’t let you pick up a fresh tomato or try on a pair of pants. And you can’t buy a cold, local beer,” said Steller, who owns Orcutt’s Old Town Market, 405 E. Clark Ave. Since 1993, Carniceria El Matador has offered authentic Mexican flavor in its products, particularly the butcher counter where Mexican-style cuts of beef are featured. Beef sourced from Harris Ranch tops the list with pork, poultry and seafood also available. The Mexican deli offers Michoacan-style carnitas, masa for tamales, menudo, chicharrones and house-made longaniza.

According to the U.S. Census Bureau, 5.3 million of the 5.9 million employer firms in the U.S. have fewer than 20 employees.

These businesses employ 20.8 million people with payrolls of nearly $829 billion.

“When I travel around, I won’t go to a chain. I’m going to look for something that’s local, that’s unique. Often times that leads to incredible opportunities and experiences,” Steller said.

A 2012 study by the American Independent Business Alliance showed that, of every $100 spent

The Diaz family, from left: Jorge Diaz, Arcelia Diaz, and Jorge Diaz, Jr., in their market, Carniceria El Matador.

Employee Celestino Hernandez prepares chicharon and carnitas in the Diaz family market, Carniceria El Matador.

at local retailers versus chains, $48 will recirculate within that community, including $3 to charitable giving. For that same $100, chains showed nearly $14 recirculating in the community and no appreciable local charitable donations. That impact was most drastic in locally owned restaurants, which recirculated more than 65% of revenue locally compared with 34.5% by chain restaurants.

“Money isn’t everything, but it’s pretty important up there with oxygen. By supporting us, by shopping here, our customers help us sponsor Santa Maria and Pioneer Valley high school sports and programs, local soccer teams and city league,” Diaz, Jr. said.

Sales at farmers markets and local produce stands help reduce greenhouse emissions by keeping fresh food local. They provide local honey which helps battle local allergens. They provide local agriculture and marketing jobs while also preserving open space and the Central Coast’s traditional agrarian feel.

Shopping locally also maintains each community’s uniqueness. Nowhere else besides Santa Maria Valley will shoppers find the unique flavors of Naughty Oak Brewing and Woody’s Butcher Block, the creative collection of gift items at Company’s Coming or the unique stylings of Fischer’s Fine Jewelry and Gina’s Piece of Cake.

“When you shop at Old Town Market, sure, you’re supporting me and my family, but you’re also supporting the people who I employ, the organizations we donate to, and when I have an air conditioning compressor out, I call a local contractor. I use a local bank, local insurance agent, local vendors. I use local just about anything you can imagine for our business functions,” Steller said.

“You can just as easily order dog food or aspirin or all kinds of natural food online, and all those sales take away from folks like me and the people and programs I support right here. People think of eating locally, but they need to take it a step further and shop locally if they want to keep these programs, that local access to goods available,” Steller said.

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SANTA MARIA PUBLIC AIRPORT DISTRICT

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