July 21-August 3, 2015

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July 21-August 3, 2015

www.lbbusinessjournal.com

Shouldering The Burden Of Data Breaches: Impacts On The Banking Industry

Focus On The City Of Carson

■ By SAMANTHA MEHLINGER Senior Writer hile the majority of W data breaches do not occur within banks or other fi-

Is the National Football League going to move two of its teams to a stadium to be built in the City of Carson? Carson Mayor Albert Robles, pictured at right, and other city officials are anxious to find out. NFL officials are expecting to provide an answer by the end of this year. The rendering above was provided by Manica Architecture of Kansas City. (Photograph by the Business Journal’s Evan Patrick Kelly)

With Major Developments In The Pipeline, ‘The Future Is Bright’ For The City Of Carson ■ By SAMANTHA MEHLINGER Senior Writer ith the potential of an NFL stadium in its W future, the Porsche Experience Center currently under construction and multiple residential projects underway, the buzz around city hall is that Carson is a city living up to its motto: “Future Unlimited.”

“The future is bright. The best years of Carson are still ahead of us,” Carson Mayor Albert Robles

said in an interview with the Business Journal at his city hall office. Robles was appointed mayor by the Carson City Council in May, when then-mayor Jim Dear was elected to the position of city clerk.

“Most cities in Southern California and particularly in the South Bay are fully developed and have already matured,” Robles said. Carson, on the other hand, has many vacant sites ready for development.

“We have many opportunities for development and (Please Continue To Page 20)

Long Beach Airport Gets ‘Negative’ Outlook From Fitch Ratings After JetBlue Cut Flights Airport Commission To Hold Special Meeting In August To Discuss Forming Study Group On U.S. Customs Proposal ■ By SEAN BELK Staff Writer ong Beach Airport recently received a “negative” financial outlook from Fitch Ratings on a series of issued bonds because

L

primary air carrier JetBlue Airways has reduced its flights, and overall air carrier passenger traffic has dropped 11.1 percent this year through May, causing a decline in revenue, airport officials said.

The drop in airport revenue was reported at a contentious meeting of the Long Beach Airport Advisory Commission on Thursday, July 16, in which heated discussions veered toward the city council’s recent decision to move forward with a study on the feasibility of building a U.S.

Long Beach Business Journal 2599 E. 28th Street, Suite 212 Signal Hill, CA 90755-2139 562/988-1222 • www.lbbusinessjournal.com

PRSRT STD U.S. POSTAGE

PAID Los Angeles, CA PERMIT NO. 447

Customs facility to allow international flights.

The controversial move to con(Please Continue To Page 8)

nancial institutions, it is most often their customers who are impacted by those breaches, according to the American Bankers Association (ABA). And even though it’s typically not financial institutions that are being breached, they are the entities held responsible to reimburse their customers for any related monetary losses.

The impact of data breaches extends beyond reimbursement costs. Response to these breaches results in a domino effect of associated costs for banks, from investing in cyber security efforts, to reissuing cards, to devoting staff time to handle concerned customer calls, and more.

Data published on July 14 by the Identity Theft Resource Center (ITRC) illustrates that the vast majority of data breaches so far this year involved businesses and medical or health care organizations. The ITRC is a national nonprofit dedicated to tracking data breaches and providing resources to those potentially impacted by breaches.

Businesses, which include retailers and other private merchants, made up 40.3 percent of breached entities so far in 2015, and medical and health care organizations represented 34.7 percent of those breached.

Banking, credit and financial institutions represent only 9.4 percent of U.S. entities breached so far this year, according to the ITRC. From 2005 (when ITRC began tracking data breaches) to 2014, (Please Continue To Page 14)

Mayor Robert Garcia To Unveil FY 2016 City Budget On July 28 ■ By SEAN BELK Staff Writer ong Beach Mayor Robert L Garcia is expected to unveil recommendations for the proposed Fiscal Year (FY) 2016 budget on Tuesday, July 28, with projections for a slight surplus in the General Fund rather than a deficit, which was previously forecasted.

During an event earlier this month in which Garcia talked

about his first year in office as mayor, he revealed that the city expects to see a $600,000 surplus the next fiscal year, Daniel Brezenoff, the mayor’s chief of staff confirmed with the Business Journal. FY 2016 begins on October 1.

During a study session in March, city financial management predicted a $1 million shortfall for next fiscal year, which would have enacted “proportionate share” tar(Please Continue To Page 14)

Formula E Racing Returning In 2016 Long Beach has been selected as one of 11 cities in the world to host the FIA Formula E Championship for 2016. More than 20,000 people attended the inaugural Long Beach ePRIX in 2015, which FIA officials called “a fantastic success.” The event, featuring electric race cars, will once again be coordinated by the Grand Prix Association of Long Beach and is scheduled for Saturday, April 2. For more information, visit: www.fiaformulae.com (Photograph by Steve Dawson)

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2 Long Beach Business Journal

Inside This Issue 4 6

12

July 21-August 3, 2015

16

Perspective

Inside City Hall

• Some Elected Officials Can Be So Transparent

By Former Councilmember Gerrie Schipske

Newswatch

• Helping Long Beach Businesses Grow: Court Express/Metro Mini Market • Jon Myer Seeks Reelection To Board Of Education • Airport Commission Meeting, continued from Page 1 • Deukmejian Courthouse A Hub Of Activity • Pet Parlor Pawsitively Opens In East Village • City Budget, continued from Page 1 (see Page 14)

Banking

• Relationship Building And Convenience: How Banks Help Small Businesses Grow • Data Breaches Impacts, continued from Page 1

18 19 20

• HealthWise: Cataracts Could Be Clouding Your Vision • Small Business Dollars & Sense: Make Time For Mid-Year Planning • Effective Leadership: 10 Ways Humor Impacts Life • Realty Views: Prop 13 Under Attack – Again • Third Sector Report: The Navigator’s Guide To Nonprofit Innovation

Art Matters

Presented By The Arts Council For Long Beach

The Nonprofit Page

Presented By The Long Beach Nonprofit Partnership

Focus On The City Of Carson

• Residential, Commercial Projects Transform City • Business Community Optimistic • CSUDH Emphasizes Partnerships, Student Success • Carson’s Arts And Entertainment Community Thrives

Free: Long Beach Business Journal Digital Edition, Monday Morning Coffee, NewsFlash Sign up at: www.lbbusinessjournal.com • Follow us on Twitter: @LBBizJourn

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Fabrizio OWNER, EF1 Motorsports

Career Mentors are a special brand of business owner. They help foster youth by giving them work experience, career advice, and emotional support.

Through Pacific Gateway, Fabrizio connected to a youth who was eager to work and in need of the guidance most teens get from a parent. What started as a summer job grew into something life changing – for both of them.

Join us. pacific-gateway.org/mentor

Made possible by the California Workforce Accelerator Program.

WIA Title I-financially assisted program or activity is an equal opportunity employer/program. Auxiliary aids and services are available upon request to individuals with disabilities.

To request a reasonable accommodation, please call 562.570.4711 or TTY 562.570.4629 at least 72 hours prior to event.

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4 Long Beach Business Journal

INSIDE CITY HALL

Some Elected Officials Can Be So Transparent

■ By GERRIE SCHIPSKE Contributing Writer First a disclaimer on the topic of open government: I am very biased. I fought for it while on Long Beach City Council and the Medical Board of California. I launched a monthly behind the scenes series and website called Open Up Long Beach and published my council calendar. The White House honored me as one of seven “Champions of Change for Open Government.”

I applaud city management for the new improved website (www.longbeach.gov) and for especially adding a feature “OpenLB” which provides many access points for citizen information and hopefully engagement.

What is especially gratifying is seeing the city adopt software which I introduced to city management before leaving office. OpenGov gives taxpayers a close look at city budgeting and spending by department.

Noticeably absent from the Long Beach city website are calendars of the elected officials and their chiefs of staff.

Taxpayers are entitled to know who gets access to elected officials and their key staff. Some cities, such as San Jose

(http://www.sanjoseca.gov/council), provide this information. Long Beach does not.

Speaking of San Jose and transparency. All cities are awaiting the decision of the California Supreme Court on Smith vs. City of San Jose, which will decide whether or not elected officials and government employees must disclose their communications regarding city business conducted on exclusively private devices using private accounts.

Smith started this legal fight when he demanded under the Public Records Act that San Jose release voicemails, e-mails or texts sent or received on personal electronic devices used by the mayor, councilmembers and staff concerning a development project for the city.

It is no secret that texting allows the private exchange of information before, during and after public votes on issues. Also most elected officials (and some presidential candidates) maintain private e-mail accounts and conduct

July 21-August 3, 2015 quite a bit of official business on those accounts. (To make these records public, some electeds send a copy of their private e-mails to their city account so that it is stored on the city server.)

Smith initially won, but the case was appealed. After Smith lost the appeal, the California Supreme Court took the case in June 2014.

San Jose and the California League of Cities argue that city officials’ private electronic communications are not “public records of a local agency” because they are not prepared, owned or retained by the city and that it would be impossible and costly to track down and compile records stored on private devices or e-mail accounts.

Transparency advocates point out that allowing government officials and employees to exclude disclosure of government business they conduct on their own private accounts is an “end run of the Public Records Act.” Apparently, this “end run” happens everywhere. Several years ago, in Long Beach, e-mails exchanged between a key city staffer and a developer wanting to swap wetlands for city property were excluded from disclosure because they were on private e-mail accounts. We know this, because in a city e-mail, the staffer asked the developer for his private email address. What they discussed later we will never know.

Long Beach is moving in the right direction to make government more open and transparent. It could move even further by adopting a policy that requires the disclosure of the calendars of elected officials and key employees as well as requiring the copying to city servers of any communication about city business conducted on private accounts.

Next column: He Loves Me, He Loves Me Not: Who the Mayor is Appointing to City Committees and Boards.

(Gerrie Schipske is a native of Long Beach, an attorney, registered nurse practitioner and full time instructor at CSULB Department of Health Care Administration. She was elected to both the Long Beach Community College Board of Trustees and the Long Beach City Council. She is the author of several books on Long Beach history and her blog, www.longbeachinside.blogspot.com.) ■

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6 Long Beach Business Journal

July 21-August 3, 2015

Helping Long Beach Businesses Grow Court Express/Metro Mini Market

Greg Dawson, owner of two Long Beach mini markets, works with the Pacific Gateway Workforce Investment Network to find and hire qualified employees. The organization also pays some of the employees’ wages. Pictured with Dawson at the Court Express mini-mart in the Gov. George Deukmejian Courthouse is his employee, Alexis Brown. (Photograph by the Business Journal’s Larry Duncan)

■ By SAMANTHA MEHLINGER Senior Writer When Greg Dawson, a local small business owner, needed to hire employees for his Long Beach mini markets, he found assistance through the Pacific Gateway Workforce Investment Network. The organization, administered by the City of Long Beach, provides businesses and individuals in Long Beach, Signal Hill, Torrance and Lomita with employment assistance.

Dawson currently operates two mini marts in Long Beach – the Court Express at the Gov. George Deukmejian Courthouse in downtown, and Metro Mini Market at the corner of Long Beach Boulevard and Anaheim Street. His first market, which has since closed, was the Pike Mini Mart at The Pike at Rainbow Harbor.

About six months after opening his first location, Dawson needed to hire more employees for tasks such as stocking products and operating the cash register. “The only thing that we had to do was give Pacific Gateway a brief description on what we were looking for,” Dawson said. “They did all the work as far as screening the employees and finding the best candidates that would fit our position.”

Having an outside organization identify, screen and select potential employees for his stores helped save Dawson time – a precious resource as a small business owner.

“We are busy trying to run the business, so it did help out as far as finding these particular employees instead of us going it on our own,” he said.

Once Pacific Gateway staff recommended employees to Dawson, they also informed him of programs those employees would be eligible for that would cover their wages as they learned on the job. Prior to his experience working with Pacific Gateway, Dawson was unaware of these programs, he explained.

Since Dawson began working with Pacific Gateway about three years ago, he has employed five to eight employees through two of the organization’s programs, including the Youth Jobs Program and the Transitional Subsidized Employment (TSE) Program.

The Youth Jobs Program matches local youth between the ages of 14 to 24 seeking employment with businesses in need of employees with their skillsets. Through the program, the local youth are able to earn an average of 100 paid hours of work experience.

During this time, their wages are paid by Pacific Gateway rather than by the business.

“Being able to offer kids, teenagers and young adults an opportunity to be somewhere where they can grow – that’s what appealed to us,” Dawson said of the Youth Jobs Program. The youth Pacific Gateway recommended for employment to Dawson already had some experience working retail, which met his needs, Dawson pointed out.

The TSE Program matches local business owners and job seekers enrolled in CalWORKS who have relevant skills. Wages of employees participating in this program are paid in full by Pacific Gateway for the first three months of employment. If the employer adds that employee to payroll, during the subsequent five months a subsidy of $350-$550 per month is paid to the employer to help cover wages while the employee receives on-the-job training.

Dawson estimates the programs have saved his business thousands of dollars. He continues to work with Pacific Gateway to meet his employment needs.

For more information about Pacific Gateway’s business assistance services, call 562/570-3700. ■

Presented monthly by the Long Beach Business Journal and the Pacific Gateway Workforce Investment Network www.pacific-gateway.org

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July 21-August 3, 2015

NEWSWATCH

Long Beach Business Journal 7

Jon Meyer Seeks LBUSD Board Reelection, With Continuity And Student Achievement As Top Priorities

By SAMANTHA MEHLINGER Senior Writer Twelve years isn’t enough for Jon Meyer, boardmember of the Long Beach Unified School District (LBUSD) Board of Education. Meyer recently announced he is seeking reelection to oversee LBUSD’s 4th District, which is bordered by Anaheim Street to the north, Cherry Avenue to the west, and Signal Hill to the northwest. The district runs to the shoreline and beyond, also encompassing public schools on Catalina Island.

Meyer was first elected to the board in 2003, filling an unexpired term. Prior to that, his career in Long Beach public education includes four decades spent working as a teacher at Millikan and Polytechnic high schools, and as a teacher and football coach at Wilson High. He was also the principal of Lowell Elementary School, Catalina Avalon High School, Lakewood High School and Wilson High.

The longtime educator places value in continuity when it comes to education, which is partly why he wants to remain on the board of education for another term.

“We have such good things going,” Meyer said in an interview at the Business Journal’s offices. “We have real stable, intelligent boardmembers who put the kids’ interests first, and we are not divisive. We have a great relationship.”

Prior to being elected to the Long Beach Unified School District Board of Education in 2003, Jon Meyer served as principal of multiple Long Beach schools, including Wilson High School, pictured here. (Photograph provided by Rick Davis)

In addition to securing the continuation of the board’s strong relationships, Meyer wants to stay on the board to ensure that LBUSD Superintendent Chris Steinhauser’s long career with the district doesn’t end any time soon. “One of the primary reasons I want to run again is I want to keep our superintendent for four more years,” Meyer said.

Board President Felton Williams, who oversees LBUSD’s 2nd District, is also up for reelection this year. While none of the

current boardmembers want Steinhauser gone, Meyer has concern that, if two new boardmembers were to be elected, Steinhauser’s future with the district wouldn’t be as certain.

“Chris Steinhauser is in his 11th year [as superintendent]. That is unheard of in a large urban school district,” Meyer said.

“He was the starting guard on my football team at Wilson [High School] when I was head football coach. He was tenacious, (Please Continue To Page 8)

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8 Long Beach Business Journal

Board Of Education Seat (Continued From Page 7)

tough, smart – just the way he is as superintendent.”

LBUSD currently has about 82,000 students enrolled in its schools – with 70 percent qualifying for free or reduced lunch, Meyer noted. “They come from impoverished homes,” he said. “And I think everyone would recognize, though it may not be politically correct to say, that given the level of income in a family home you can pretty much predict their success. That’s our challenge in Long Beach.”

Meyer wants to continue working on measures the school district is developing to ensure the success of its students. Recently instituted state law gives public school districts local control funding to allocate towards the success of impoverished students. In the past year, LBUSD has been rolling out programs, overseen by individual schools, which use the funds to close the achievement gap between students from poor backgrounds and their peers. “Accountability is a big part of this local control funding program,” Meyer said, explaining that each school has set goals and parameters for their local control funding programs. “We will have some real strong results by [next] spring.”

The school district is also currently using funds from the Measure K Bond Program, passed by Long Beach voters in 2008, to open smaller high schools with academic programs built around career pathways. One of the high schools, the

NEWSWATCH Sato Academy of Mathematics and Science, is in Meyer’s district. The school, named after Eunice Sato, the first female mayor of Long Beach, is opening on the site of Hill Classical Middle School in the fall.

Sato Academy is being created to meet the demand from students who wish to participate in mathematics and sciencecentered programs such as those offered at the California Academy of Mathematics and Sciences (CAMS) on the campus of California State University (CSU), Dominguez Hills. “We have more kids who are qualified who want to go there than we can accommodate,” Meyers said of CAMS. Students at Sato Academy will be able to take courses at the nearby CSU Long Beach campus for concurrent high school and college credit, he noted.

In addition to wishing to continue overseeing LBUSD’s current efforts, Meyer wants to assist the school district in what he views as its top challenge, which he said is “continuing to narrow the achievement gap among white students and students of color.” LBUSD schools are making progress in this area, he noted. “For example, this last year, Wilson High School greatly increased the number of African American and Latino kids taking and passing advanced placement classes,” he said.

Still, while Meyer could likely go on for some time highlighting the district’s achievements, he emphasized: “We’ve got lots of work to do.”

The next LBUSD Board of Education election takes place in April 2016. ■

Airport Commission (Continued From Page 1)

sider allowing international travel, which was formally requested by JetBlue in February, has been supported by airport businesses that would also benefit financially from such a change.

Still, adding a U.S. Customs facility has been strongly opposed by some airport-adjacent residents who fear that it could risk opening up litigation challenging the city’s noise ordinance.

The commission advised airport staff to schedule a special meeting in August to discuss forming a study group on the U.S. Customs proposal before the city issues a request for qualifications (RFQ) in September to select consultants to carry out the feasibility study, to be completed early next year.

During the commission meeting, Dale Worsham, the airport’s administrative officer, said that Fitch Ratings, which annually reviews the airport’s bonds, conducted a review earlier than normal this year out of concern about the expected decline in passenger traffic.

The projected drop in airport revenue was first reported earlier this year after JetBlue discontinued a flight to Washington, D.C., last year and reduced summer flights to Las Vegas, Oakland and Salt Lake City. Horizon Air, a regional air carrier of Alaska Airlines, pulled out of the Long Beach market entirely.

Worsham said Fitch reaffirmed the airport’s A- rating on $103 million worth of bonds to pay for terminal upgrades and a new parking structure issued since 2009 but adjusted the outlook from “stable” to “negative” mainly because of JetBlue’s reductions in flights.

July 21-August 3, 2015 He said the airport is projecting a 25 percent drop in net revenue this fiscal year, which ends September 30, over fiscal year 2014, meaning net revenue is expected to decrease by $2.5 million, or from $10 million to $7.5 million.

Overall, the airport is expected to end this fiscal year with about 1.28 million total enplanements, an 11 percent decline from last fiscal year, airport staff said. JetBlue enplanements alone have decreased 6.5 percent through May 2015 over last year, airport staff confirmed with the Business Journal. “[Fitch Ratings] noted that we were going to raise our rates and charges to make up for lost revenue, which was good, but that is continuing to put pressure on our cost-per-enplanement metric, and that’s not sustainable for the long run,” Worsham said. “So that’s why they gave us the negative outlook.”

Airport Director Bryant Francis pointed out during the meeting that the decline in commercial airline passenger traffic is partly a result of Horizon’s departure from Long Beach earlier this year, which eliminated about 6,000 passengers per month, he said.

Francis confirmed that the airport has enough funds in reserves to maintain operations for one year without any revenue.

However, Worsham said the airport’s bond rating could be downgraded next year if airline flight levels remain the same.

In a separate report, Mark Echmalian, the airport’s administrative analyst, said JetBlue’s pullback on flights means that the airline is averaging 2.4 fewer flights per day, resulting in about 80 fewer flights per month at the airport.

Commissioner Jeff Rowe questioned

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July 21-August 3, 2015 why the airport is projecting a 4 percent increase in salaries, wages and benefits at the same time anticipating a 25 percent drop in net revenue.

“I’m just thinking like a business person for a second here,” he said. “The business is declining, but we’re adding people and giving people raises. I just don’t think a business person can figure that out.”

Worsham replied that the airport has been able to contain costs to offset revenue losses. He said raises are locked in with employee labor union agreements that require salary step increases. In addition, the airport recently hired new security officers as part of Federal Aviation Administration recommendations, he said, adding that the costs of new security employees would be offset by cutting overtime associated with police personnel.

Discussions, however, quickly turned to the city council’s approval to look into the possibility of adding international flights and a U.S. Customs facility.

In a 6-3 vote at its July 7 meeting, the city council agreed to conduct a study on the feasibility, financial and otherwise, of adding a Federal Inspection Service (FIS) facility for U.S. Customs and Border Protection clearance to allow international flights at the airport.

The council action included conducting at least two community meetings on the study’s findings; forecasting additional general aviation flights, including corporate and private jets that would utilize the FIS facility; assessing potential legal threats to the airport noise ordinance; and studying additional security risks associated with international flights.

Those who voted against moving for-

Long Beach Business Journal 9 ward with the study were 4th District Councilmember Daryl Supernaw, 7th District Councilmember Roberto Uranga and 8th District Councilmember Al Austin.

Residents at the commission meeting questioned why a new study is needed since the airport already commissioned New York-based Frasca and Associates, LLC in 2013 to conduct a study on the feasibility of a U.S. Customs facility. Joe Sopo, a 4th District resident and residential real estate agent, said that study concluded the utilization of international flights by JetBlue appeared at the time to be “limited.”

However, Francis noted that the study used data from 2012, when enplanements and passenger traffic were at their peak at the airport. He said the new study is necessary since airport traffic has since declined, which would provide a different baseline for analysis.

The explanation didn’t satisfy John Murray, a 58-year Long Beach resident, who said a challenge to the noise ordinance might result in more flights that would create a quality of life issue for neighborhoods underneath the flight path.

“I think it’s very clear that the risk of possibly having the noise ordinance challenged is certainly not worth any reward we could get from a [U.S.] customs facility or international flights,” he said. “Airlines come and go.”

Commission Chair Gerald Mineghino and Commissioner Roland Scott, however, both disagreed with Murray, adding that JetBlue simply plans to replace existing domestic flights with international flights, not (Please Continue To Page 10)

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10 Long Beach Business Journal

Airport Commission (Continued From Page 9)

add to the number of flights it is allowed.

In fact, commissioners emphasized that JetBlue stated in a letter to the city dated February 23 that the airline, which operates 32 out of 41 available slots at the airport, has no intention of “disturbing the sanctity or legality of the ordinance.”

Commissioner Jeff Rowe said the airport has to “balance” several factors, including the nearly 750 JetBlue employees in Long Beach, as well as jobs supported by air passenger traffic in Long Beach, such as driving a cab. He added that the airport’s noise ordinance could be challenged at any time.

“Unless JetBlue is misleading us, they’re not making enough money on the flights they have here and that’s why they’ve pulled aircraft and are going elsewhere,” he said. “It’s a global economy now, and JetBlue just wants to be a part of it.”

Kevin McAchren, president of Airserv, which provides support services at the airport, said adding a U.S. Customs facility for international travel would benefit fixedbase operators for general aviation clients, such as corporate jets that would fly to and from other countries.

However, he said the increase for general aviation activity would only be about five to seven new flights per week, which would still comply with the noise ordinance.

McAchren added that JetBlue had stated in its own letter that bringing international flights to the airport would greatly benefit the general aviation community, which would “bring new economic and corporate opportunities to the City of Long Beach.” ■

NEWSWATCH

July 21-August 3, 2015

Deukmejian Courthouse A Hub Of Activity In Downtown Long Beach ■ By SAMANTHA MEHLINGER Senior Writer Since opening in September 2013, the Gov. George Deukmejian Courthouse in Downtown Long Beach has become a hub of activity, with daily in-and-out foot traffic of 4,000 people visiting its courts, county departmental offices, and ground floor retail fronting Magnolia Avenue, according to 2015 statistics from the Downtown Long Beach Associates. The organization, which runs downtown’s business improvement district, also estimates that the daily foot traffic outside the courthouse along Broadway and Magnolia Avenue (about 7,200 people) accounts for 10 percent of the entire downtown area’s daily foot traffic.

Future developments in the area promise to increase the number of people passing by or near the courthouse even beyond those figures. The new civic center planned for the City of Long Beach will eventually be located catty-corner to the courthouse at the southeast corner of Broadway and Magnolia. Plans include a new city hall and Port of Long Beach headquarters, retail, residences, a hotel and a redesigned Lincoln Park.

Several residential projects are also underway and planned within Downtown Long Beach, which the City of Long Beach estimates will create 2,500 new housing units.

In 2014, the Gov. George Deukmejian Courthouse won 14 national and international awards for its design by architec-

Freddy Rayes is the chief executive officer for Long Beach Judicial Partners LLC, a Meridian Infrastructure Project Company. The company oversees operations of the Gov. George Deukmejian Courthouse, which Rayes said has been well received by visitors and the community since it opened in 2013. (Photograph by the Business Journal’s Evan Patrick Kelly)

ture firm AECOM, including the Urban Land Institute’s 2014 Global Award for Excellence.

Freddy Rayes, chief executive officer of Long Beach Judicial Partners LLC, which built the courthouse and now oversees its operations, said the courthouse serves as an anchor for the community.

“People love great architecture. They love great buildings,” Rayes said in an interview at his courthouse office. “A courthouse, and a library for that matter, [are] always seen as the two public buildings that kind of anchor a community together.”

The 545,000-square-foot courthouse houses offices for five Los Angeles County

departments in addition to Los Angeles County Superior Courts.

A recent survey asking visitors and employees for feedback about the courthouse generated positive results, with respondents giving their experience in the building an average score of 4.8 out of 5 stars, Rayes said. “The key thing here is the safety and security that this courthouse provides as well as the fact that it is a beautiful building to work in,” he noted.

Rayes and Becky Blair, president of Coldwell Banker Commercial BLAIR WESTMAC, whose company oversees leasing of the courthouse’s ground floor (Please Continue To Next Page))

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July 21-August 3, 2015

Long Beach Business Journal 11 Current retailers within the Gov. George Deukmejian Courthouse in Downtown Long Beach include Subway and The Coffee Bean & Tea Leaf. Two additional tenants are being sought to occupy a 1,437-square-foot space and a 1,840-squarefoot space adjacent to current retail. For more information, contact Coldwell Banker Commercial BLAIR Westmac’s Becky Blair at 562/495-6070 or WM Commercial’s Toliver Morris at 562/552-8874.

(Photograph by the Business Journal’s Evan Patrick Kelly)

retail in conjunction with WM Commercial Corporate Real Estate, hope to attract new food retailers to fill the courthouse’s two remaining vacancies. Two tenant spots, each with a built core and shell, total 1,437 square feet and 1,840 square feet, respectively.

The courthouse’s retail tenants currently include Subway and Coffee Bean & Tea Leaf, which are operated by one franchisee.

The eateries are accessible to the general public from an outdoor patio fronting Magnolia Ave. Rayes and Blair said they hope to attract

tenants that will complement the existing retailers. “We are looking for [tenants] that can offer that variety. Perhaps a hamburger joint that also offers salads, or perhaps Mexican or Asian [food],” Rayes said.

“Not only do we have people coming and going, there is a constant stream of traffic all day. But beyond that, we also have judges and clerks and all the employees that are here,” Blair said. Additionally, a residential complex directly across the street houses 291 people, she noted. “Overall, especially during lunch time, we see a lot of foot traffic,” Rayes said. ■

New Pet Parlor Pawsitively Opens In East Village Arts District Pawsitively Long Beach, a new pet grooming parlor for cats and dogs, recently opened in downtown’s East Village Arts District. The shop has been a lifelong dream for Abigail Gibson, a groomer with 10 years of experience. “I have been working with animals since I could walk,” she told the Business Journal, recalling how she used to bring home stray animals as a child. Gibson began training and showing dogs for the American Kennel Club at the early age of eight, and later went on to work at a veterinarian’s office and the SPCA. Partner in the business with Gibson is Jaime Hernandez, a former grooming client of hers who so believed in her work that he wanted to invest in her business, she said. A grand opening event was held on June 25. Pawsitively provides full-service grooming and skin treatments and is located at 254 Elm Ave. Hours: Tuesday-Saturday, 10 a.m. to 7 p.m.; Sunday, noon to 6 p.m.; closed Mondays.

For more information, call 562/612-1215. At left, Gibson receives a thank you kiss from Scroli the pub; and at right Gibson poses with pooch Wooster. (Photographs by the Business Journal’s Larry Duncan)

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12 Long Beach Business Journal

BANKING

July 21-August 3, 2015

Relationship Building And Convenience: How Banks Help Small Businesses Grow ■ By SAMANTHA MEHLINGER Senior Writer Across the U.S., small businesses are growing as evidenced by the Small Business Administration’s report that use of its loans have been increasing, hitting an alltime high in 2013. By the end of 2014, the SBA reported that small businesses were responsible for creating about 7 million of 10.9 million private sector jobs added in the U.S. during the recovery from the Great Recession. As this growth continues, local and national banks are focusing on going above and beyond providing financial products to aid small business expansion.

Banks are increasingly focusing on relationship building with their small business owner clients – a key component to helping those clients grow, according to banking professionals.

Ben Alvarado, president of Wells Fargo’s southern region, told the Business Journal that Wells Fargo is continuing to grow its staff to meet businesses’ needs. “We have continued to build our staff of business team members in the branches,” Alvarado said, noting that there are more than 32,000 business specialists working at Wells Fargo locations nationwide.

“As much as business owners are looking for convenience, there is still that relationship component [with the bank] that they tell us is really important to what they do,” Alvarado said. “Part of our plan is to build lifelong relationships. That is the place from which we operate.”

International City Bank (ICB), a Long Beach-based, independent bank with a focus on small business, also puts emphasis on building close relationships with its clients. Michael Miller, president and CEO of ICB, said this process takes time. Most important in the process is developing trust, which ICB does both through its performance and by being there when its clients need it, Miller said.

Anna Platt, CFO of Long Beach-based Platt Security, told the Business Journal that she started banking with ICB three

years ago partially because of Miller’s personal flair for relationship building. “The president [Miller] and his assistant knocked on my door on a cold call. And that really impressed me – that the president himself was making cold calls,” Platt recalled.

“ICB stepped up to the plate. Not only do they provide us with our lines of credit, they have been a really great partner in financially growing our business.”

Since moving her business’s banking to ICB, Platt said she regularly meets with a specific staff member who knows her business well. “He is someone I can bounce ideas off of and get financial business strategy, which the other bank we were using didn’t give us anything close to,” she said.

“I kind of feel like they are a partner.”

City National Bank, a Southern California-based bank founded in 1954, also recognizes the importance its small business clients place on developing lasting relationships with their bankers.

“The differentiator for us is we really try to listen to our small business owners and be that trusted advisor looking at the long term, not just the short term,” David Park, City National Bank’s senior vice president and group manager responsible for the bank’s business banking and SBA departments, said in a phone interview. “We were founded by entrepreneurs, so we believe each of our clients should have a relationship manager,” Park noted.

For Bruce Golison, a partner with his two brothers in the Long Beach-based commercial real estate development firm Golison Development, having a close-knit relationship with his business’s bank, City National, is essential.

“We’re a family business . . . We have a very strong family bond and that carries over to the office,” he said. “So having a relationship with the bank is important.

When we walk into the branch, they know us. We’ll sit and we’ll chat about our families . . . It’s good because we want to know each other as people, not just as a business relationship.”

Having a personal banker and easy ac-

cess to senior officers within the bank has been important for Golison’s business.

“The thing that’s important to us is . . . having access to the senior officer at the bank in charge of credit, and having him come into our office conference room and sit down and talk through things,” Golison said. “That’s something that’s really important, because having the final decision maker be comfortable with you and be able to get them on the phone any time, that can be the difference between making a deal or losing a deal. And we really enjoy that relationship with the bank.”

Valerie Magness, first vice president and branch banking administrator for the Long Beach-based Farmers & Merchants (F&M) Bank, defines F&M by its relationships.

“We value our relationships with our clients, and a lot of the companies that we started out with started out as small businesses and have grown over time,” she said.

“We have a lot of long-term employees here at the bank, and you deal with the same person over a long period of time as your business grows.”

Catalina Adventure Tours, which has administrative offices in Long Beach, has been banking with F&M since about 2000, according to CFO Michelle Stickler.

“When I go to the bank, it is somebody I know . . . Or if I have a problem or situation, I can just call somebody,” Stickler said. “The employees have been there for a long time compared to other banks.”

In addition to focusing on cultivating strong relationships with their clients, banks are also putting more of an emphasis on helping small business clients develop business plans.

Wells Fargo, for example, recently launched WellsFargoWorks.com, where any business owner – whether he or she banks with Wells Fargo or not – has access to business planning tips and tools.

According to Alvarado, the new website is a step-by-step guide for small business owners to write their own business plans.

“We know when a business has a plan, they are more engaged in what they are

doing and they find greater success in running their business,” he said. Wells Fargo has a focus on meeting with clients in person to plan ahead for the future as well, he pointed out. “Our bankers and managers in the stores are really looking to help the customer build a plan so we can guide them and then provide whatever product or service they need to fulfill the plan,” he explained.

City National Bank also focuses on helping its small business customers plan ahead. “We talk to the small business owners, not just about their current need, but what they want to accomplish for the future,” Park said. “Especially when it comes to more specific products like equipment leasing or loans, we definitely try our best to understand the long term needs [of the business].”

Banks have also learned to cater to small businesses by developing convenient, timesaving tools and products. Wells Fargo, F&M, ICB and City National all offer online banking and remote deposit capture, which allow business owners to access their banks from their workplace. “Online banking and remote deposit capture are becoming increasingly more popular for small business because they can process checks at their office versus having to come in to the bank,” Miller said.

“We do a lot of online banking now,” Golison said. “[City National Bank has] upgraded their systems to where we can do a large amount of our banking online as far as transferring from account to account and not having to get in the car every day to do this,” he continued. “That is a huge advantage.”

Banks are also increasingly bringing their services directly to their customers’ places of business by sending out staff members for site visits. At F&M, for example, Magness oversees a concierge service team of about 20 employees who visit new small business clients and help them with setting up their accounts. “They don’t have to leave their business in order to come in and do their banking – we can assist them right on site,” she said. ■

Michael Miller, president and CEO of International City Bank, said the majority of his bank’s clients are small businesses. The bank is a preferred Small Business Administration (SBA) lender, which means it is able to internally approve SBA loans without first requesting the organization’s approval. The bank is located at the northwest corner of Ocean and Long Beach boulevards in Downtown Long Beach.

(Photograph by the Business Journal’s Larry Duncan)

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14 Long Beach Business Journal

Data Breaches Impact The Banking Industry (Continued From Page 1)

financial institutions’ share of data breaches among other business sectors totals 8.1 percent – the smallest share of any sector. Over that time, businesses accounted for the highest percentage of

July 21-August 3, 2015

BANKING breaches, at 34.3 percent, and health and medical organizations came in second, accounting for 26.4 percent of all breaches.

From 2005 to June 9, 2015, the ITRC has tracked 5,377 data breaches, which resulted in the compromise of 786,098,214 records nationwide.

Although banks and financial institutions are not typically the victims of data breaches, it’s their customers who are ul-

timately impacted, according to Doug Johnson, senior vice president of payments and cyber security policy at the ABA. “First and foremost, what our experience shows is, regardless of where the information is compromised, it is going to be a financial institution customer that’s at the end of the line,” he told the Business Journal.

“Regardless of where the breach oc-

curs, the financial institution is largely responsible for the cost associated with that breach,” Johnson said. The financial institution’s costs are sometimes mitigated by reimbursement from the breached entity, such as a retailer where the original breach occurred. But only sometimes, and usually only partially.

An ABA survey of 535 banks – about 75 percent of which have assets of less than $1 billion – revealed that 66.9 percent of those banks had not received any reimbursement for data breaches that occurred between 2009 to 2014.

Large banks fared better in this area – 100 percent of banks with assets totaling more than $50 billion received reimbursements for data breaches from 2009 to 2014, while 64.7 percent of banks with $10 billion to $50 billion in assets were reimbursed. About half of banks with $1 billion to $10 billion in assets were reimbursed for data breaches during that time period. The vast majority of banks with assets of less than $1 billion were not compensated for any data breaches in that time period, with only 25.1 percent receiving reimbursement payments.

According to Johnson, reimbursements to banks with less than $1 billion in assets for costs associated with data breaches were made at a rate of less than one cent on the dollar. “That’s pretty sobering,” he said.

Obtaining reimbursement payments from breached parties such as Target, which experienced a massive data breach between November 27 and December 18, 2013, can be a long and painful process, Johnson said. For example, the process of determining whether or not Target was in compliance with payment card data security standards when it was breached has still not been completed. The Target breach cost the banking industry about $200 million, according to Johnson.

When financial institutions start seeing unauthorized transactions reported by their customers, they work with other financial institutions to determine a point of compromise – in other words, the source of the data breach.

“The card networks mandate a forensic audit of the breached party to make a determination as to whether or not the breached party was in conformance with the payment card industry data standards,” Johnson explained. “If they aren’t, then the networks have the capacity to fine the retailer, or the breached party, if it is a payment breach. That fine is supposed to be commensurate with the potential reimbursement schedule . . . which (Please Continue To Next Page)

City Budget (Continued From Page 1) geted budget cuts. City staff also projected in March a $9.3 million deficit in Fiscal Year 2017 and a $7.4 million deficit in Fiscal Year 2018, which remain.

As a result of the forecasts, police and fire departments both developed alternative funding sources, which were discussed at a public safety committee meeting in April.

One of those options is imposing a first responder fee, which the city council is scheduled to consider at its meeting tonight, July 21. According to a city staff report presented by Fire Chief Michael DuRee, the department proposes to charge a $250 “fire first responder fee” to patients who are medically evaluated and treated by fire staff on a first responder unit, to partially offset the costs of providing emergency medical services.

According to the staff report, the fire department budgeted $11.3 million in ambulance transport revenue for the current fiscal year, which includes $400,000 in budgeted ground emergency medical transportation (GEMT) revenue. The annual budgeted cost of providing paramedic services totals $22.1 million annually, far exceeding budgeted revenue, the staff report states.

The new fee would be separate from, and in addition to, the current ambulance fees that are charged when there is a transport.

According to city staff, the amount of the fee is “consistent with what other California agencies charge and assumes full recovery of personnel, apparatus, emergency medical supplies, equipment and administrative costs.”

A agenda item includes a list of cities that charge a first responder fee, but neither Los Angeles County or Orange

County fire departments are listed. Most of the cities listed are in Northern California.

When told about the first responder fee, Business Journal Publisher George Economides said, “I assume that means there is no money for pay raises, either? Since we have a high number of seniors on fixed income and a large population of low-income people, I hope those segments of our community do not stop calling paramedics for fear of the new fee. Councilmembers need to closely evaluate the pros and cons of the fee.”

He added: “I’m all for paying our public safety personnel more money – but only if we can afford it. With huge pension obligations on the horizon, and most of those tied to public safety personnel who have been able to retire fully vested at a younger age, our elected officials need to understand our financial outlook over the next several years.” ■

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July 21-August 3, 2015

essentially says banks should be reimbursed up to a certain amount.”

While the cost of reissuing a payment card may be about $5 on average, the ABA has found that, when “soft costs” such as call center operations and other customer service requirements associated with data breaches are included, the cost to financial institutions is about $10 per compromised card on average. “In no way does that [reimbursement] ceiling ever get reached,” Johnson said.

The ABA has been working with Congress to pass legislation creating uniform, strong and national standards for data security that would apply to retailers and other business sectors – not just banks. Additionally, the ABA is advocating for legislation that would hold “those responsible for the breach to pay the costs associated with that breach.”

“It is affecting all of us in a big way,” Michael Miller, president and CEO of Long Beach-based International City Bank (ICB), said of data breaches. “It has become increasingly important for us to focus on,” he said. Miller and ICB staff members regularly take part in webinars and training about data breaches and cyber security. “It’s an ongoing effort for us.”

In addition to staying ahead of data breaches by training staff, the banking industry works with its customers to educate them about protecting their information. Johnson called financial institution customers “the front line of defense” when it comes to data security.

Farmers & Merchants Bank, for example, encourages customers to maintain updated and well-established security software on their computers, according to Chief Marketing Officer and Senior Vice President Adam Michaelson. Other tips F&M offers to consumers include using enhanced security features for e-mail accounts, being wary of e-mailed financial requests, and subscribing to bank alerts for unusual transactions or other out-ofthe-ordinary account activity.

The banking industry is continuously revisiting its data protection measures to ensure they are able to address the latest threats, Johnson said. “We will continue to improve upon our efforts based upon how the threats are changing,” he said. “It is absolutely mandatory that we do so because, let’s face it, the electronic environment is one we are all gravitating toward, and it is vital that we maintain trust within that environment.” ■

BANKING

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16 Long Beach Business Journal

July 21-August 3, 2015

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HealthWise

Small Business Dollars & Sense

cataracts could Be clouding Your vision

Small Business owners: Make Time For Mid-Year Planning

A

s people age, it’s common to experience problems with vision. In most cases, blurred vision is caused by cataracts, which is cloudiness of the eye’s natural lens. Initially it can be treated with glasses, but after time vision may worsen. Once the cloudiness begins to interfere with activities like driving, reading or watching TV, surgery may be required.

Cataracts are the leading cause of blindness worldwide, and the leading cause of vision loss in the U.S., according to the Centers for Disease ConBy Ravi trol. An estimated 20.5 million Americans 40 and older have cataracts in Menghani, M.D. one or both eyes. More than 6.1 million have had their lens removed, making it one of the most commonly performed surgeries in the U.S. What To Expect During Cataracts Surgery Cataracts surgery is a painless 15-minute procedure done in an outpatient setting that removes the lens and replaces it with an artificial one. Although the procedure itself is fast, preparation can take up to 90 minutes.

No knives, needles or injections are used. The entire procedure is done using an ultrasound – the same type used to monitor a baby in utero – which vibrates and breaks up the cataracts.

Small pieces of the lens are gently removed using suction then the artificial lens is inserted.

During surgery, the patient lays flat on their back underneath a light and microscope.

When someone is under full anesthesia, the eyes roll to the back of the head. During cataract surgery, the patient needs to be able to look directly at the microscope, so the patient must remain awake. However, anesthesiologists will give the patient gentle sedation through an IV to help them relax and remain comfortable. To avoid feeling pain, a numbing gel will be used in the eye 30 minutes before surgery.

What To Expect After Surgery If someone has cataracts in both eyes, each eye will be operated on separately, and usually a few weeks apart. Mild discomfort, itchiness, blurriness or redness may occur after surgery. Most people will return to excellent vision within a few of days of the procedure, unless they have another underlying eye condition.

After surgery, a protective plastic shield will need to be worn over the eye. Medicated eye drops will be prescribed to help prevent infection and inflammation of the eye. Like all surgery, cataracts surgery comes with risks, including pain, infection and inflammation. Nearly all cataracts surgeries are successful, although there are risks to be carefully discussed with every procedure.

Causes Of Cataracts Cataracts can be caused by a variety of factors, most commonly aging, but other contributors can include excess exposure to UV rays, excessive use of steroid medications, smoking and certain chronic conditions, like diabetes. People with uncontrolled diabetes are at a higher risk of developing cataracts at an even earlier age.

Like most parts of the body, overall health affects the eyes. Eating healthy, exercising, avoiding smoking and maintaining healthy numbers can result in healthier eyes. Protecting the eyes from the sun can help prevent long-term damage.

The best way to diagnose cataracts is through a dilated eye exam, which is performed during an annual eye exam. If diagnosed, the eye care professional will determine if surgery is the best course of treatment.

(Ravi Menghani, M.D., is an ophthalmologist at Community Hospital Long Beach, MemorialCare Health System.)

Effective Leadership 10 Ways Humor impacts Your life

H

ow important is attitude? Attitude is like the banks of the river that determines the direction of how the water will flow.

How important is humor? Humor is one of the key foundations of our attitude, and therefore, how we approach life. Just like

By Mick the banks of the river, it shapes our life and UklejA generates energy. It helps reframe many of our fears into mere superstitions that are unnecessary.

On a personal level, humor becomes magnetic, drawing others to you. I’m not talking about being a standup comedian. If that’s your gift then please use it. My point is to simply ask yourself this question: “Is there something about me that is light, fun and humorous? Or am I overly serious, looking for the next crisis that will unfold?”

There’s no downtime. Often these kinds of folks infuse

E

ven with half of the year in the books, many small business owners wait until December or January to assess their business and identify ways to improve its financial performance. Yet making time in June or July for a mid-year check-in may be one of the best times to help your business save time and money, and operate more efficiently in the long run.

Evaluate Business Expenses – Understanding how profitable your business has been year-to-date can help you evaluate your current posiBy Ben tion and modify your goals as needed. If you don’t already do it, keep AlvARADo your business and personal accounts separate. Keeping separate records will help with an accurate accounting of business income and expenses and will allow you to minimize expenses and improve cash flow.

Assess your Business Plan – Every small business should have a formal, written business plan to help with business decisions and strategic planning. According to a recent Wells Fargo survey, business owners who said they had a formal plan reported much greater optimism for 2015. If you don’t have one, or if your plan hasn’t been updated in a long time, now is a great time to consider writing or updating your business plan. The process of putting your goals in writing will help you focus on long-term business objectives and the steps needed to achieve them.

Prepare for Transitions – While you’re developing or refreshing your business plan, it’s also a good time to look at your transition plan. As a business owner, you may not be thinking about selling your business or retiring, but it’s never too early to start planning for the future. There are many options to think about – such as whether you want to sell your business, pass it to a family member, cash out now or wind down over time – which can make transition planning seem like a daunting task. For this reason, it’s helpful to start the process of exit planning several years before you plan to make the transition.

Re-think your Payment Options – Now also is a great time to evaluate all of the payment options you offer customers and determine whether these need to be updated, including whether to transition to chip card/EMV acceptance for credit card payments. It’s important for small business owners to understand and research this new payment method now so you are prepared for mandatory implementation. I will be writing about this in an upcoming column.

Think Taxes – It can be easy to lose sight of the need for year-round tax planning for your business. Spend time reviewing your tax entries for the first half of the year to ensure you’ve captured all expenses, especially for things like cars that are used for business and personal use. If you haven’t met with your tax professional recently, now is a good time to go over key filing dates and deadlines like quarterly tax payments, and staying organized and prepared on your business taxes.

Summer is a busy time but it’s a good idea to conduct a mid-year financial review.

Taking time now can help you make the most of the remainder of the year.

(Ben Alvarado, a 24-year veteran of Wells Fargo, is the president of the bank’s Southern California Region, which stretches from Long Beach to Orange, Imperial and San Diego counties.)

anxiety into their interactions with others. This can make the office, the shop, or even the home a place of drudgery.

NEWS FLASH! Those around us are attracted to lightheartedness. They are repelled by those who produce a heavy load when they show up. We are all a little like elevators. We are either lifting people up or taking people down.

Humor is the best medicine on earth – and you don’t need a prescription!

Humor helps create a happy heart – and you can’t overmedicate!

What are some of the side effects of humor? Here is what science says. It…….

Boosts our immune system; Diffuses conflict; Gives perspective to our fears; Elevates our moods; Increases resilience; Improves our relationships; Promotes teamwork; Relieves stress; Reduces pain; Unleashes creativity During times of great crisis, humor has provided measurable relief from stressful situations. In order to keep living it is necessary to keep laughing.

In the workplace, when you compare the businesses that are listed as, “The best businesses to work for,” one common denominator is “a fun environment.” In other words, humor is a part of their corporate culture. Southwest Airlines has humor as one of their drivers of good corporate citizenship.

There are Fun Coaches scattered throughout their organization – and it’s encouraged by those in leadership!

As one famous comedian said, “Through humor you can soften some of the worst blows that life delivers. And once you find laughter, no matter how painful your situation might be, you can survive it.”

This kind of thinking is not new. It’s found throughout ancient wisdom literature. Here’s one: “A joyful heart is good medicine, but a crushed spirit dries up the bones.”

You can almost feel those words.

So if you find yourself being overly serious or a little too heavy all the time, take off that cloak and enjoy the beauty around you. Enjoy the lighter side. It’s there. If you wait until everything is under control, you’ll be waiting a long, very long time.

Humor is to your life what shock absorbers are to your automobile. It has a smoothing effect on your life. It creates a more pleasant and positive environment at home, at work, and with your close friends.

And remember – if you can’t laugh at yourself, you, and those around you, may be missing out on some great fun! :) Laugh, and the world laughs with you. Snore, and you sleep alone.

(Mick Ukleja keynotes on topics related to leadership and personal productivity. He’s president of LeadershipTraq, and author of several books. His clients have included Fortune 500 corporations and nonprofit organizations.

Check his weekly blog at www.leadershiptraq.com.)

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July 21-August 3, 2015

Realty Views Prop 13 Under Attack – Again

I

t has been almost 40 years since the passage of the landmark Proposition 13 initiative that stabilized property tax rates for owners of real estate in California. A year doesn’t go by where this legislation isn’t under attack by someone.

Once again, those who want to increase government revenues and don’t really care how they do it,

By TeRRY RoSS are going after Prop 13 by denying the owners of business properties – offices, retail, factories and other buildings – the same benefits afforded to homeowners or agricultural properties.

Some have called it a split tax roll.

Under Prop 13, property tax assessments are based on the original sales price of the property – plus a maximum two percent annual increase – as long as the owner keeps the real estate and there is no new construction that increases the value.

A slew of new bills being introduced in Sacramento are attempting to change Prop 13 and would alter the landmark legislation drastically by taxing business property in a different manner – enough so that the supporters think it can raise $9 billion in new taxes.

The 1978 law is designed to trigger a property tax reassessment with every change of ownership. With most residential properties, this change is obvious because a new person moves into the house. But change of ownership is harder to define with commercial properties due to business entities like limited liability corporations that involve multiple owners where percentages of ownership may change – but not enough to trigger a re-assessment. One of the proposed bills – Senate Constitutional Amendment Five – would allow local governments to raise revenue by adjusting taxes on commercial and industrial properties following a reassessments of value, not just during an ownership change.

The Howard Jarvis Taxpayers Association – the foundation named after the late businessman and politician – has fended off numerous challenges to the legislation that was passed by 65 percent of the voters in an election with a 70 percent turnout in 1978. These new challenges might be the strongest yet.

To get the various bills that have been introduced through the two houses of the legislature, the Democratic majority pushing the changes will need help from the Republican minority to get the re-

quired two-thirds vote. Most observers believe this is a long shot right now and, like other recent attempts to dismantle Prop 13, will fail in the assembly and state senate.

Where things could change is in 2016. It is a presidential election year that should produce a larger turnout in a state that continues to swing more liberally, and, if all the current legislative proposals falter, several groups – including Service Employees International Union and the California Teachers Association – have already begun to mobilize in support of an initiative that is being planned for the ballot next year. Also, even if the ballot initiative fails, if the Democrats reclaim a two-thirds majority status in California, a Proposition 13 overhaul could be swift.

Conservative-leaning business groups are also uniting to try to squash the effort.

“The business community is going to fight this to the death,” said Robert Lapsley, president of the California Business Roundtable.

A counter-campaign would frame the discussion around raising taxes on small business owners across California, many of whom are Hispanic or Asian, Lapsley said. He added that the opposing camp already includes the California Chamber of Commerce and other business groups.

“The minute this initiative gets filed is when everything starts,” Lapsley said. “We will aggressively use every tool in our toolbox to defeat this. We know we will have necessary funding to do that.”

State Senate Republican leader Bob Huff was equally opposed to changing Prop 13 and noted the damage it could do to the business climate in this state. “Each time there is even an incremental tax increase, you have businesses leaving (California) because it is the straw that breaks the proverbial camel’s back,” he said.

If the issue reaches the ballot, it could be an expensive campaign, pitting unions who desire additional government funding against businesses that fear extra taxes cutting into their bottom lines.

A recent poll from the Public Policy Institute of California found that 50 percent of likely voters supported the idea, down from 60 percent in January 2012. The poll was conducted by phone from May 17 to 25. It included responses from 1,706 California residents and had a margin of sampling error of plus or minus 3.6 percentage points.

Even though the current proponents of changing the law on just commercial property will try to make the case to homeowners that this won’t impact them, the fact remains that these laws are always changing and it wouldn’t be a stretch that, the next time a deficit hits, lawmakers will go after the rest of the pie and look for higher taxes on homeowners. Once you make the change, it opens the door for many more.

(Terry Ross, the broker-owner of TR Properties, will answer any questions about today’s real estate market. E-mail questions to Realty Views at terryross1@cs.com or call 949/457-4922.)

Third Sector Report The navigator’s Guide To nonprofit innovation

I

n his book, Good to Great, Jim Collins outlines specific pathways for evolving run of the mill organizations into truly successful enterprises. Even after 15 years since its release, the Wall Street JourBy jeffReY nal still contends it’s one of Wilcox the best business books ever published.

Shortly after the book appeared, Collins offered a supplementary monograph for Good to Great specifically aimed at what he called, “the social sector.” The subtitle chosen for this work: “Why Business Thinking is Not the Answer.”

Since 2001, thousands of nonprofit organizations have convened weekend retreats, hired consultants, and launched strategic planning efforts with Good to Great firmly in their hands. Hours have been spent teaching the uninformed about

Long Beach Business Journal 17

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the importance of BHAG (Big Hairy Audacious Goals). The expression “making sure the right people are on the bus” has become the best reason ever put into print for getting rid of boardmembers and executives.

Unfortunately, readers who banked on Good to Great for their businesses failed to include the monograph on their nightstands and the results have been costly to “the social sector.” The pathways to greatness are different when it comes to evolving a nonproprietary business model that typically relies on unpaid and paid human resources, more purchasers than consumers, less controlled marketing channels, and stakeholders as opposed to stockholders to yield a double bottom-line.

During the Great Recession, nonprofit leaders faced unprecedented pressures to simply keep the doors of their organizations open. Many Baby Boomer executives had planned to retire during those years only to find their own financial futures in the same predicament. As the economy recovered, the name of the game in the Third Sector evolved from “survivability” to “sustainability,” which meant planned resiliency with documented impact.

Last month’s Giving USA report suggests that things are looking up for the sector.

Total estimated charitable giving was up 7.1% in 2014 which was preceded by a 4.4% increase during 2013. Contributions from Individuals rose 5.7%, foundation distributions grew 8.2%, corporations upped their overall giving by 13.7% and funds generated through bequests scored a 15.5% gain on the heels of an 8.7% increase the year prior.

There’s no doubt about it: The wheels are greased and the shift from “surviving to thriving” is today’s cliché in the Third Sector. The push to grow and prosper is so great that the heroes of the survive and sustain days are now at risk of losing their positions because of a perception that these leaders don’t personify the greatness required to spawn big ideas and quickly mobilize resources in big ways.

Navigating innovation, as that is applied to both the development of resources and the deployment of those resources in highly impactful and visible ways, will be the test of greatness by the current generation of nonprofit leaders.

As Collins’ subtitle implies, navigating innovation in a nonprofit culture is a management science that makes business leaders uncomfortable. The successful innovator is, first and foremost, a skilled and charismatic advocate, then a determined entrepreneur, and, finally, a savvy business leader. Virtually every nonprofit was founded because of the first two attributes. Every successful nonprofit was grounded because of the third.

Igniting innovation starts with leaders

Vol. XXVIII No. 14 July 21-August 3, 2015 EDITOR & PUBLISHER George Economides SALES & MARKETING EXECUTIVE Heather Dann STAFF ASSISTANT Larry Duncan EDITORIAL DEPARTMENT SENIOR WRITER Samantha Mehlinger STAFF WRITER Sean Belk CONTRIBUTING WRITER Thyda Duong, Anna Mavromati Gerrie Schipske PHOTOJOURNALIST Evan Patrick Kelly COPY EDITOR Pat Flynn The Long Beach Business Journal is a publication of South Coast Publishing, Inc., incorporated in the State of California in July 1985. It is published every other Tuesday (except between Christmas and mid-January) – 25 copies annually. The Business Journal premiered March 1987 as the Long Beach Airport Business Journal. Reproduction in whole or in part without written permission is strictly prohibited unless otherwise stated. Opinions expressed by perspective writers and guest columnists are their views and not necessarily those of the Business Journal. Press releases should be sent to the address shown below.

Office South Coast Publishing, Inc. 2599 E. 28th Street, Suite 212 Signal Hill, CA 90755 Ph: 562/988-1222 • Fx: 562/988-1239 www:LBBusinessJournal.com Advertising and Editorial Deadlines Wednesday prior to publication date. Note: Press releases should be faxed or mailed. No follow up calls, please. For a copy of the 2015 advertising and editorial calendar, please fax request to 562/988-1239. Include your name, company and address and a copy will be sent to you. Distribution: Minimum 22,000.

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able to light a fire for a mission statement that is a call to action. Innovation is fueled by nurturing a conviction amongst employees, volunteers and contributors that, indeed, “Yes We Can.” Innovation is driven by a board that sees itself as an engine where advocacy and stewardship converge.

As a determined entrepreneur, the navigator channels this energy and calls for the question whether innovation lies in engaging and serving more constituencies (outputs) or serving the current constituency in deeper and more meaningful ways (outcomes). The smart entrepreneur knows sustainable innovation wouldn’t occur by attempting both.

With a resulting BHAG in the making, business know-how makes sure that innovations are managed in ways that yield efficiencies and effectiveness, constituent engagement, participant encouragement and objective evaluation.

Navigating innovation in a nonprofit organization is not sailing into unchartered waters. Causes that achieved greatness had the benefit of leaders who understood from the beginning that the gravitational pull of their compasses comes from a very different energy source than what was taught in business school.

(Jeffrey R. Wilcox, CFRE, is president and chief executive officer of The Third Sector Company, Inc. Join in on the conversation about this article at the Long Beach Business Journal website: www.lbbusinessjournal.com.)

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ART MATTERS

Brought To You By The Arts Council For Long Beach • www.artslb.org

Sunnyside Cemetery Screening Series

■ By LOGAN CROW LB Cinematheque Founder

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his year, the Long Beach Cinematheque marks its third year presenting classic films at Long Beach’s historic Sunnyside Cemetery, spotlighting our city’s 109-year-old historic landmark to thousands with a selection of beloved films under the stars. Beyond providing memorable evenings of entertainment, the series is only the latest example of the Cinematheque’s tradition of partnering with community institutions and organizations on mutually beneficial events

A Beatles movie being shown at Sunnyside Cemetery.

The nonprofit Cinematheque’s mission – to enrich, connect and educate communities through the art of cinema – is often met through innovative community collaborations.

In the case of the Sunnyside Cemetery series, the series is programmed by the Cinematheque, sponsored by Lola’s Mexican Cuisine and hosted by the privately owned nonprofit cemetery on Willow and Orange.

The Sunnyside Cemetery series is a collaboration between three Long Beach institutions. To ensure we could afford the mounting infrastructure costs to produce these events, we turned to our friends and supporters at

Lola’s Mexican Cuisine on 4th Street in Retro Row. They have been wonderful allies and supporters of the Cinematheque since the day they opened and took a very active role in helping us close 4th Street to cars for our third Zombie Walk event in 2011. Since the success of that night we have often talked about bringing more outdoor cultural events to Long Beach. When I ran a cemetery screening series by them, Lola’s owner Luis Navarro and his team were enthused to sign on.

Then there’s Sunnyside Cemetery, our wonderful host venue and mutual beneficiary of the events. Michael Miner, who sits on the cemetery’s board and serves as its community liaison, expressed that there’s a general misconception that the cemetery is a City institution, and thus City-funded, which often leaves them in desperate need of support. On the contrary, the cemetery is a nonprofit organization and is no longer accepting new internments, which means it depends solely on community donations.

A portion of every ticket sold to these screenings is donated to Sunnyside Cemetery, and we always get a nice response from the crowd when we let them know that their tickets have helped keep two Long Beach nonprofit institutions going. I felt a great sense of pride and accomplishment when Mr. Miner told me that proceeds from last year’s series accounted for the single biggest donation the cemetery received that whole year. Guests of our 2014 films can pat themselves on the back for making such a wonderful impact on a historic Long Beach landmark.

Beyond our series at Sunnyside, the Cinematheque is hard at work with our independent art house cinema in Downtown Santa Ana, The Frida Cinema.

To learn more about the Cinematheque and see the full schedule of films to be screened at Sunnyside Cemetery – which this year includes a diverse list of classics from Xanadu to The Shining – visit thefridacinema.org. ■

Gallery Corner The 19th Tafesilafa’i Pacific Islander Festival celebrates the arts and culture of California’s Pacific Islander communities. The festival takes place in front of the Aquarium of the Pacific from July 19–26 and is a free community event. Attendees receive discounted admission to the Aquarium, which has a new exhibition called Jellies that features a new variety of jellyfish species. This year’s Tafesilafa’i Festival celebrates its eighth and final year at the Aquarium of the Pacific, so everyone is encouraged to come out this summer and partake in all the festivities both the Aquarium and festival have to offer. The theme is “La Auala,” which translates to “the way” and celebrates leadership. For more information please visit www.tafesilafai.org and www.aquariumofpacific.org.

Long Beach Business Journal 18 July 21-August 3, 2015

How Summer and Music Helped Make Downtown Cool Again ■ By SARAH BENNETT Arts Council for Long Beach Contributor

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here’s no denying that the Downtown Long Beach of today is vastly different than the Downtown Long Beach of 10 years ago: upscale housing developments, revitalized public spaces and a slew of enviable restaurants, bars and breweries are breathing new life into the city’s commercial center.

Live music has also brought a major artistic boon to the area, with outdoor concerts, street takeovers and new venues encouraging Long Beach residents to enjoy their revitalized historic core.

This creative infusion is thanks, in part, to the Summer and Music (SAM) concert series, which began its seventh season of downtown events last month.

“When we first started, most of downtown was still empty storefronts. There weren’t many opportunities for live music and there were no venues,” said SAM Co-Founder Rand Foster, owner of Long Beach’s largest independent record store, Fingerprints. “[But] any place is a venue if you have an audience.”

In its first year, SAM – building off an existing Downtown Long Beach Associates program – blanketed downtown businesses with local musicians every weekend, holding more than 40 live music pop-ups over its three-month run. In the following years, Foster, along with Co-Founder Justin Hectus, narrowed down the programming to just a few large-scale events in order to reach more people and make SAM sustainable.

Funk Fest, Battle of the Tribute Bands and the season-ending Buskerfest became landmark concerts during those times, drawing thousands of people to the streets of downtown like never before.

“I started to see what downtown was like when it was hopping,” Foster said, noting that for most of his time in Long Beach, downtown was not somewhere that many residents hung out. “It opened my eyes. And I think SAM’s played a role like that for a lot of people.”

A few years after launching SAM, Foster moved his record store from Belmont Shore to an adaptive reuse structure on 4th Street in the East Village Arts District. The decision was a reflection of the inroads made by the concert series he helped launch. “SAM got us here. It allowed us to see the potential for downtown,” Foster said.

SAM maintains four signature events each summer – one per month – switching up concepts, locations and lineups for a few of them every year. July’s Bicycle Drive-In will screen the Wizard of Oz alongside local bands; August’s Twisted at the Pike is a carnival-themed concert in the shadow of the Long Beach Ferris wheel; and new to 2015 was June’s 720º on North Pine, which celebrated skateboarding culture with a night of rock ‘n’ roll bands. As with every year, SAM will end with Buskerfest in the East Village, where local bands play for wooden nickels and a chance to win a career-boosting prize.

Today, however, SAM is not the only concert game in town. There are now numerous live music venues in Downtown Long Beach, all of which book their own mix of local and regional acts. And through other DLBA programming, such as Live After 5, music happens on the streets and inside businesses year-round.

“That's what we aimed to do – make downtown a place you want to be,” said Foster.

For more information about this summer’s SAM events, visit summerandmusic.com. ■

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THE NONPROFIT PAGE

Long Beach Business Journal 19 July 21-August 3, 2015

Curated By The Long Beach Nonprofit Partnership

Zero Waste and the Bottom Line We hear a lot these days about Zero Waste; but, what does that mean and how does striving toward Zero Waste help a company’s bottom line?

What does Zero Waste mean? AcLiesl R. Thomas, cording to Zero Executive Director, Waste Alliance InAlgalita Marine ternational, it Research and means, “designEducation ing and managing products and processes to systematically avoid and eliminate the volume and toxicity of waste and materials, conserve and recover all resources, and not burn or bury them...” The actual definition is longer, but that is Zero Waste in a nutshell.

Captain Charles Moore, Algalita Marine Research and Education founder, believes that “Zero Waste is a goal we should all be striving for.” At Algalita, we are focused on the issue of waste—particularly plastic waste—in the ocean. The alarming increase in the numbers we are seeing in regards to marine debris tell us that something must change. More studies are looking at the health impacts surrounding the polluting of our ocean and according to the report, Plastic

Algalita, Marine Research and Education - Inspiring Solutions to Plastic Pollution.

Waste Inputs from Land into the Ocean, (Jenna Jambeck, et al, Science Magazine, Feb. 2015), the United States is responsible for generating 110,000 metric tons of marine debris per year.

Through waste reduction, recycling, composting, businesses can become better stewards of our environment and community, and SAVE MONEY at the same time. It is simply good business. When a company is able to achieve waste reduction goals, it is telling our community a few things: they care about our community; they care about reducing their negative impact on our beaches/ocean/ land/environment; they care about

Capacity Corner: Upcoming Calendar of Events From the Nonprofit Partnership Human Resources: Employee Recruitment and Selection Thursdays, July 23, 2:00-5:00pm This session provides practical recruiting and selection techniques. Behavioral interviewing question development and strategies are reviewed.

The Value of Diversity and Demographic Data in Long Beach Wednesday, July 28, 8:00-9:30 am Presented by ReThinking Greater Long Beach, a self-described think tank, this session will focus on ethnic disparities in Long Beach. The presentation will focus on implications for nonprofit organizations, with an emphasis on program planning, development, and evaluation.

Successful Project Management Wednesday, July 29, 2015, 9:00am-Noon If you're new to project management or looking for a refresher on effective project management, come learn the basics of managing projects small to large.

Human Resources: Compensation Practices and Leaves of Absence Thursdays, July 30, 2015, 2:00-5:00pm This session provides an overview of evaluating current compensation practices, classifying employees and legal concerns, as well as understanding and managing leaves of absence (FMLA/CFRA, PDL, ADA).

encouraging their employees to be responsible environmental stewards and to take those lessons home with them; and that they care about their bottom line and saving money.

For a long time, companies were concerned that if they went “green,” or implemented sustainable practices, it would be cost prohibitive. Did you know that most companies that strive toward Zero Waste save money? How do they do this?

One way is by reducing the amount of waste being sent to the landfills.

Businesses pay based on weight/volume. We have become an over-packaged society. This is not necessary. By reducing the amount of waste, refuse bills decrease. By purchasing goods with less packaging, businesses can reduce their waste. Make better choices in purchasing office supplies and other single-use items and you will reduce the amount of waste you generate.

Another important tactic is recycling. Businesses are often paid for their recyclables. By source-separating items (i.e., cardboard, paper, glass) into the right bins, companies can be paid to recycle these valuable resources. State law AB341 mandates commercial recycling and the City of Long Beach offers many resources for businesses. For more info, go to: www.longbeach-recycles.org/recycling/mandatory_recycling.htm Here in California, we have some great examples of companies striving towards and achieving Zero Waste status. Fetzer Vineyards achieved Zero Waste status and now save approximately $380,000 per year. Joining the ranks of Fetzer as Zero Waste superstar companies include: American Licorice Company, Sierra Nevada Brewery, Toyota North American, Earth Friendly Products, to name a few.

As the ‘aquatic capital of America,’ we in Long Beach should be a shining example of how to protect our shores and sea. Together we can achieve so much, but first, we must recognize that change won’t happen unless we take action both individually and collectively.

The U.S. Zero Waste Business Council is a great resource in Southern California for businesses striving to achieve Zero Waste, or who want to substantially reduce their waste.

Check them out and find ways that you and your business can reduce waste today. There is no time like the present and, while you work towards reducing your waste, you can also be reducing costs and improving your bottom line.

Five Easiest Ways To Reduce Waste In Your Business 1. REDUCE: Reduce the purchase of over-packaged items, Print less (not every email needs to be printed out) and print double-sided 2. REUSE: Provide water fountains/drinking stations so employees may refill reusable water bottles. Encourage the use of reusable items wherever possible.

3. RECYCLE: Make sure Recycle bins are prominent and next to trash cans; Make sure you know WHAT can be recycled in your area (coordinate with a recycling company, so you get paid for your recyclables) 4. REFUSE: Refuse items you don’t need. Do you need a phonebook at every desk? Do you need every free item given at conferences/meetings?

Will you use them or will they end up in the trash?

5. RE-TRAIN: This is important to ensure employees are following your waste reduction policies. A basic training on the why/how/where will help employees and help your company. Recycle bins are just trash bins if no one knows to use them.

Volunteer Management Certificate Program Wednesdays, August 5, 12, and 19, 2015, 9:00am-4:00pm In partnership with Points of Light institute, this certificate program is designed to give you a comprehensive understanding of the major components of a nonprofit Volunteer Management Program.

Delivering Exceptional Customer Service from the Inside Out Wednesdays, August 5, 12, and 19, 2015, 9:00am-4:00pm Successful organizations recognize that excellent customer service is the result of paying close attention to interconnected interactions. Excellent service doesn’t come just from a friendly response or a helpful website. It results from really understanding customer expectations and putting structures in place that will exceed those expectations at every step of their experience. Ultimately, your success is tied to the quality of the customer’s experience with you.

From our Partners Save the Date: Stronger Together Nonprofit Conference Wednesday, August 19, 2015, 9:00am-4:00pm Join three strong partners — CalNonprofits, Compass Point, and NIAC — working together on the second annual nonprofit conference for California with leading edge content and exceptional presenters in leadership, strategy, advocacy, and risk management. For more info, visit: calnonprofits.org.

The area’s regional capacity builder, serving local organizations to strengthen and grow through leadership, education and collaboration. Offering: Professional Development & Training Networking & Collaboration Custom Training & Consulting Services Information Resources To learn more, visit us at www.lbnp.org.

4900 East Conant St., Building O-2, Suite 225, Long Beach, CA 90808 562.888-6530

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20 Long Beach Business Journal

FOCUS ON THE CITY OF CARSON

July 21-August 3, 2015

At left, a rendering released in June of the $1.7 billion NFL stadium proposed on a 168-acre site in Carson shows a design of an open-air stadium with a view of a peristyle opening.At right, the latest design of the NFL stadium proposed to be built in Carson to host the Chargers and Raiders football teams includes a “community field.” (Renderings provided by Manica Architecture) (Continued From Page 1)

many opportunities to welcome and embrace new businesses to come into our city.

We are excited about that,” he said.

The biggest brand name Carson is hoping to bring within its borders is the National Football League (NFL), which is currently evaluating whether to build a stadium on a 163-acre parcel of land adjacent to the intersection of the 405 and 110 Freeways in Carson. The stadium would potentially house two relocated NFL teams: the San Diego Chargers and the Oakland Raiders.

According to city staff, the NFL will make its decision by the end of the year.

“It is clear to me that the vast majority of the community does want an NFL sta-

Thank You Advertisers Thank you to the following advertisers for supporting the 2015 Focus On The City Of Carson: • California State University, Dominguez Hills • California Water Service Company • DoubleTree by Hilton Carson • FCL Logistics • Kaiser Permanente • SouthBay Pavilion • Tesoro Refining & Marketing Co. • The Carson Center • The Carson Companies • Watson Land Company

dium,” Robles said. “So I have made that a priority for the time being – to best position the city to be selected as the eventual home for the NFL stadium.”

If the NFL decides not to move forward with a stadium in Carson, the city has a backup plan ready that would stand to bring in substantial sales tax revenue. A real estate developer is ready and willing to pull the trigger on building a mixed-use outlet center called The Boulevards At South Bay, which would include residences and a hotel at the site. “They have already started to make some preliminary proposals in terms of who will be [located] there,” Robles said of the outlet center’s developer.

When asked which proposal stands to benefit the city more – the NFL stadium or the outlets – Robles sided with the stadium.

He acknowledged, however, that while an economic analysis by the Los Angeles County Economic Development Corporation showed that a stadium would bring $8 million in additional revenue to Carson each year, the outlet center would bring in a bit more. But, according to Robles, determining which is the best plan for the future of Carson is about more than money. An NFL stadium would shine a spotlight on Carson on a national and international scale, bringing it increased visibility and making it a “destination city,” he said.

Thanks to the NFL’s interest in Carson, businesses are becoming interested in the

city, Robles said. “Just the interest of the NFL in Carson has created a buzz that makes other businesses take notice as to what’s going on in Carson,” he said. “We have received a lot of interest.”

The City of Carson is currently doing well financially, according to Robles. He cited the city’s utility user tax, in addition to effective city management and fiscal responsibility, as reasons for the city’s solid financial footing.

The utility users tax (UUT), established by Carson voters in 2009, is a 2 percent tax on natural gas and electric use. It is set to expire at the start of city’s next fiscal year, which begins July 1, 2016. Voters will decide whether or not to renew the tax.

“If the UUT is not approved, it’s going to have a significant impact on our bottom line,” Robles said. “It constitutes more than 10 percent of our budget. If it is not approved, it is going to have a significant impact on the city’s operations and our financial standing,” he explained. “That’s a concern, but we’re dealing with it. We’re working with our business community and with our various residential groups to get them behind it.”

Interim City Manager Ken Farfsing, who was appointed by the city council in early July, said conducting outreach to homeowners and businesses about renewing the UUT is one of his priorities.

Another financial issue Robles is keeping his eye on is the unfunded liability in the form of employee pension costs. “We do have some unfunded pensions, but they’re manageable. We increased our [monetary] contribution towards that last year,” he said. “It’s at a very manageable level; there is nothing to be concerned

about. In fact, I would submit to you that Carson’s position is much stronger than any other city around us,” he added.

One of Farfsing’s immediate priorities is balancing the city’s budget; the proposed budget for the current fiscal year currently includes a deficit of about $1.5 million. “Obviously, we need to have a balanced budget, and we want to bring a balanced budget forward. So I’m hoping we can get that done by August,” Farfsing said in a phone interview.

Because the city’s budget year began July 1, the council has adopted resolutions to keep the city running in the meantime, Farfsing explained. “They have resolutions that they adopt, kind of like the federal and state government. They have ongoing appropriations that they basically continue to operate under.”

The City of Carson is currently undertaking a search for a new city manager with the help of Farfsing, who recently retired from a 30-year public sector career, including the last 19 as city manager of Signal Hill. “Ken brings added credibility to the process and gives confidence to professional city managers who might not otherwise think of Carson,” Robles said. “I think his stature in the South Bay and L.A. County among city managers helps us in that process.”

Farfsing said he expects to serve as interim city manager for about six months. In that time, he is also assisting the city in finding a permanent director of finance.

“The number one goal is to do what’s best for the residents of Carson,” Robles said of his priorities as mayor. “One of the ways I hope to do that is by listening and being responsive to the residents’ needs from all parts of Carson.” ■

While NFL Teams Eye Carson For A Stadium, Residential And Commercial Developments Continue To Transform The City ■ By SEAN BELK Staffr Writer ew residential and commercial deN velopments continue to transform the City of Carson, but the biggest game changer for the city and the entire Southern California region would be a new National Football League (NFL) stadium – that is, if the San Diego Chargers and Oakland Raiders decide to move to town.

Though the teams have yet to officially file for relocation, both have been negotiating a joint proposal to move to Carson, and have already obtained legal entitlements from the city through a ballot initiative passed earlier this year that allows the

construction of a stadium on a 168-acre parcel adjacent to the 405 Freeway.

Carson City Planning Manager Saied Naaseh said the initiative permits the project to move forward with zoning changes while avoiding a lengthy environmental review process, as residents have already provided enough signatures supporting the proposal.

The next step is for the teams to officially file relocation applications that satisfy various criteria established by the NFL, said Mark Fabiana, legal counsel for the Chargers, in an e-mail to the Business Journal.

Though existing NFL rules prohibit any team from filing for relocation until January 1, 2016, it is possible that the date may (Please Continue To Page 22)

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22 Long Beach Business Journal (Continued From Page 20)

change on August 11, when owners are expected to discuss the possibility of a move to the Los Angeles area during a special meeting in Chicago, Fabiana said. He added that, eventually, the relocations require a three-fourths vote of approval by ownership, or 24 out of 32 owners.

Carson’s $1.7 billion proposal, however, isn’t the only one on the table. There is a competing pitch for a stadium location in Inglewood as well.

Still, Fabiana said the Carson site, which has already undergone environmental remediation since it is a former landfill, would be a “fantastic” spot for a permanent stadium. He said the teams have been searching for a stadium in their existing home markets for years but have been unable to find a suitable location.

July 21-August 3, 2015

FOCUS ON THE CITY OF CARSON “From the Chargers’ point of view, the team has been trying for 14 years now to find a permanent stadium solution in San Diego,” Fabiana said. “Unfortunately, we have failed and have, therefore, been forced to consider other alternatives. The Carson property is a fantastic location for an NFL stadium that will be focused solely on the fans and on the game day experience.”

Renderings released in June by Kansas City-based Manica Architecture show an open-air design with an additional “community” football field and a statue depicting a Super Bowl trophy.

Fabiana said, “At this point, very little ancillary development is anticipated around the stadium,” adding that, in order to provide fans with the “best possible game day experience,” the teams are “dedicating almost all of the site to guar-

antee ample parking for fans and easy ingress and egress.”

Naaseh said the city is expecting a final decision from the NFL by the end of the year. If the teams choose Carson, the city would have only 30 days to review plans and provide a response, he said, adding that plans would have to meet certain standards outlined in the initiative.

If Carson isn’t chosen for the stadium, however, the city already has a backup plan in place with a developer ready to move forward with a large, mixed-use development, known as The Boulevards at South Bay, which would consist of an outlet mall, a hotel, restaurants, retail, entertainment and multi-family housing.

According to city officials, an economic analysis conducted by the Los Angeles County Economic Development Corporation

(LAEDC) concluded that the new NFL stadium would generate about $8 million in annual revenue for the city. On a larger scale, the stadium would generate nearly $60 million in new state and local tax revenues while creating 13,000 new jobs to support the stadium’s operations, according to the study.

Even though, technically, the mixed-use project may produce more sales tax revenue for Carson, the NFL stadium would be the most beneficial project for the city over the long term since it would turn Carson into a “destination city” with national and international acclaim, city officials said.

John Raymond, who was hired in June as Carson’s director of community and economic development after working for the City of Palm Springs, called the NFL Stadium a “tent pole project” that would “elevate the image of the community.”

Other Commercial Developments he stadium would complement other entertainment attractions in the city, Raymond noted, adding that Carson is already home to the StubHub Center, which hosts the LA Galaxy soccer team.

In addition, people will soon be able to visit The Porsche Experience Center, a 53acre facility that will include a luxury-ve-

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The Porsche Experience Center, currently under construction on property owned by Watson Land Company adjacent to the 405 Freeway in Carson, is expected to feature driving tracks, dining, meeting facilities and vehicle displays. The facility is expected to open next year. (Rendering provided by Porsche)

A new residential community called The Avalon at 21521-21601 S. Avalon Blvd., which is expected to include 357 residential units on a 5.5-acre site, was recently approved by the Carson City Council to move forward. The rendering at left shows a 30,000-squarefoot retail space and a public plaza as part of The Avalon. The developer is making efforts to bring in a Trader Joe’s-like grocer to the location. (Renderings provided by the City of Carson) Below, the Carson City Council approved plans in June for a three-story, affordable housing project at 401 Sepulveda Blvd. that will include a mixed-use community featuring 65 units for senior citizens. (Rendering provided by the City of Carson)

hicle exhibition area, driving tracks, a restaurant, a conference center, meeting rooms and driving simulators.

The Porsche center, currently under construction on the former Dominguez Hills Golf Course visible from the 405 Freeway, is expected to open next year, according to Lance Ryan, senior vice president of marketing and leasing for Watson Land Company, which owns the property.

“Without a doubt, it’s going to be a fantastic development,” he said. “[Porsche] put a lot of heart, soul and effort into making it happen, and it’s going to be real exciting for the general community, too.”

Another new attraction in Carson is a 13screen Cinemark Theatre, which opened in May at the SouthBay Pavilion, where new retail and restaurants have also opened.

Other commercial developments, meanwhile, are either underway or planned.

Across the 405 Freeway, for instance, Car Pros Kia of Carson is moving forward with construction of a project to expand its auto dealership. However, city officials said the auto dealer is still deciding whether to use the additional site for a second location or relocate completely to the new site.

On the far northeast side of the city, a 448-acre site at 20945 S. Wilmington Ave., home to Shell Oil’s Carson terminal, is (Please Continue To Page 24)

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24 Long Beach Business Journal

July 21-August 3, 2015

FOCUS ON THE CITY OF CARSON

Two of the key staff members for the City of Carson overseeing the city’s progress are Saied Naaseh, left, who serves as planning manager, and John Raymond, who was hired in June as director of community and economic development. (Photographs by the Business Journal’s Sean Belk) (Continued From Page 22)

being considered for mixed-use development. Naaseh said Shell is currently preparing a specific plan, which, if approved by the city, would free up nearly 100 acres of property for development.

Last year, Shell had proposed retail, light industrial and possibly other uses for the project that would take about 15 to 25 years to develop. The Carson City Council is required to certify a final environmental impact report (EIR) on the project, he said.

“You just don’t find properties like that in the South Bay, so we have to think very hard and long about how that’s going to develop,” Naaseh said.

New Residential Communities esidential developers are also considering Carson as a viable option.

In fact, several hundred new affordable and market-rate housing units have been built primarily in the city’s downtown core over the past three years and more are on the way.

The 150-unit Renaissance at City Center, for example, opened last year as the city’s first luxury apartment complex. The development, which includes a courtyard, swimming pool and an IHOP restaurant at 21800 Avalon Blvd. across from Carson City Hall, now has a waiting list of people wanting to move in.

Another project that is fully built is Via 425 by developer Related California, according to city officials. The project includes a 54-unit affordable housing apartment community at 425 E. Carson St. and a 40-unit, four-story apartment complex at 401 E. Carson St. Nearby, Veo, a new 152-unit residential community being developed jointly by Santa Monica-based Community Dynamics and Los Angeles-based CityView, is still under construction on 9.5 acres at 616 E. Carson St. The project calls for 48 condominiums (23 to be sold as affordable housing to moderate-income households), 89 townhomes, 15 detached single-family homes and 14,000 square feet of ground floor retail.

Steve Roberts, vice president of Community Dynamics, said two restaurants have already signed leases to take retail space in Veo; however, he couldn’t reveal the names of the tenants. Roberts said 126 residential units are either complete or under construc-

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tion, adding that the entire development is expected to be completed in spring 2016.

He said the multitude of developments planned and underway in Carson spurred the new residential development, noting that the development is a chance for people to buy homes in the city, adding that all homes in the Veo development are already for sale.

“We feel that, first and foremost, [this] was an opportunity to build a new 10-acre community right at the civic core of Carson, where there are other developments happening, either recently or planned,” Roberts said. “There’s quite a bit of activity, and we’ve seen [Carson] as a wonderful place to invest in and create a community for homeowners.”

Richard Rojas, Carson associate planner, said the city council approved plans in June for a three-story, affordable housing project at 401 Sepulveda Blvd. that will include a mixed-used community featuring 65 oneand two-bedroom units for senior citizens Katelyn Silverwood, director of marketing for San Diego-based Affirmed Housing, which is the developer, said in an e-mail that the project will also include 3,000 square feet of ground floor retail in addition to an outdoor patio seating area.

In addition, she said the complex will include a 1,000-square-foot public plaza at the corner of Sepulveda Boulevard and Panama Street.

Silverwood said the developer intends to start construction on the $23 million project in spring 2016 and open the community

in 2017. She said housing development is the developer’s second project in Carson.

A new project called The Avalon, which will include 357 homes on a 5.5-acre site, was recently approved by the city council.

The project will offer more than 30,000 square feet of retail space and a public plaza.

Rojas said another housing project that includes 18 single-family homes on Vera Street is coming up for approval in August. He added that plans for an 11-unit, two-story apartment complex at 440 E. Sepulveda Blvd. by El Segundo-based developer Equassure were approved last year and the developer is expected to start construction soon.

Upgrading Public Infrastructure he Carson City Council, meanwhile, recently awarded a contract to move forward with a $20 million public infrastructure improvement project known as the Carson Street Master Plan.

Naaseh said the city expects to start construction in the next few months to upgrade the 1.75-mile corridor between the 405 and 110 freeways, improving the public rightof-way by revamping sidewalks, landscaping and medians. In addition, the project includes adding new “street furniture,” including benches, lights, bike racks and 35foot-tall monuments at the entrance to the city at Figueroa Street.

Naaseh said the new public infrastructure is an effort to complement the many resi-

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The Veo, a new 152-unit residential community, is currently under construction on 9.5 acres at 616 E. Carson St. The project is expected to include 48 condominiums, 89 townhomes, 15 detached singlefamily homes and 14,000 square feet of retail. (Photograph by the Business Journal’s Larry Duncan)

dential and mixed-use developments taking place in the city and to create and develop a “downtown” corridor.

“That’s our investment on the Carson Street corridor,” Naaseh said. “We’re trying to make a statement, because, with these bigger projects coming in, we’re trying to promote Carson Street as our downtown.

We want to have high-density developments that bring in more people. And more people, in turn, will bring in more retail centers, and we’re trying to create that mass that would create our downtown.” ■

Carson Business Community Optimistic As Major Investments Move Forward ■ By SEAN BELK Staff Writer usiness prospects in Carson look B promising these days, according to city officials and professionals, who said that major commercial investments and a recent housing boom in the city’s downtown area have attracted many new residents and patrons.

“The future is bright,” said John Wogan, president of the Carson Chamber of Commerce. “The real great thing is people are spending top dollar to live in Carson, and [developers] are just building and building . . . It’s just amazing.”

According to statistics released this month, Carson’s overall sales tax revenue increased 5.5 percent from January through March this year compared to the same time period last year, said Barry Waite, Carson’s business development manager. Auto dealers, some of which have leased additional space for vehicle storage, have experienced particularly strong sales growth this year, he said.

The industrial real estate sector in Carson and the South Bay is seeing historically low vacancy rates, as businesses are more comfortable locking in to longerterm leases in an improving economy. In fact, some sizable industrial tenants are upgrading to even larger space, including Epson, which is doubling in size.

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July 21-August 3, 2015

FOCUS ON THE CITY OF CARSON

Long Beach Business Journal 25

The SouthBay Pavilion in Carson is home to more than 90 stores, including Sears, JCPenney, Target, IKEA and others that are among he city’s top sales tax revenue producers. New tenants that have opened recently include Rue 21, Kay Jewelers and a 13-screen, state-of-the-art Cinemark Theatres. It’s the first movie theater to open in the city since a drive-in movie theater closed down in the 1990s. (Photographs by the Business Journal’s Larry Duncan)

What Carson has going for it, above all else, is its location, Wogan said, pointing out that the city is centrally located between Downtown Los Angeles and Orange County and can be considered the midpoint of Southern California. The city is also close to the local ports, is conveniently situated between Los Angeles International (LAX) and Long Beach airports and has easy access to four major freeways.

“We have the best location here,” Wogan said. “If there’s no traffic, it’s 15 minutes right up the Harbor (110) Freeway to Downtown [Los Angeles]. You’ve got LAX

on one side of us and Long Beach Airport on the other . . . This is the place.”

He added that a recent housing boom in the city’s downtown core near city hall shows that people are willing to spend market-rate prices to live in Carson as well. Wogan noted that there is currently a waiting list to move into the newly built 150-unit Renaissance at City Center, the city’s first luxury apartment complex.

Also, he said the city has several “unique” attractions, including the StubHub! Center, where the LA Galaxy soccer team plays, a four-year university and a

golf course, while a new Porsche Experience Center is expected to open next year.

Wogan added that the city is planning upgrades to public infrastructure in the next few years along Carson Street.

“Some cities are stagnant,” he said.

“Some cities are going south. We’re going straight up.”

Wogan said the city has been able to attract new commercial and residential developments partly because of its business-friendly practices. However, he said extending a 2 percent utility users tax (UUT) on electricity and gas, set to expire

next year, would be detrimental to the city’s progress.

A measure to extend the UUT and include additional taxes on water, cable television and telephone services failed to pass earlier this year, Wogan noted, adding that the city is in good enough financial shape to let the tax expire.

“Why should we want to do that to our residents and our businesses?” he asked, referring to extending the UUT. “It was voted down in March, and that was a good thing.

There’s no need for it.”

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26 Long Beach Business Journal

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FOCUS ON THE CITY OF CARSON

Carson residents, business people and visitors have seen an increasing number of dining choices over the past several years. Included are: The Olive Garden at 20532 Avalon Blvd.; Chilis at 20760 Avalon Blvd.; and Buffalo Wild Wings at 736 E. Del Amo Blvd. All three restaurants are part of SouthBay Pavilion. (Photographs by the Business Journal’s Larry Duncan) (Continued From Page 25)

Retail And Restaurants he SouthBay Pavilion, meanwhile, has had an influx of new retail stores and restaurants.

Julie Cruz, the mall’s general manager,

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said the Pavilion, which is home to more than 90 stores, including Sears, JCPenney, Target, IKEA and others that are the city’s top sales tax revenue producers, is experiencing “significant sales growth” so far this year.

She noted that the biggest addition to the

mall recently is the new 13-screen Cinemark Theatres, which opened on May 28.

It’s the first movie theater to open in Carson since a drive-in theater closed in the 1990s.

Cruz added that mall management will have a better idea at the end of the year

Car Pros Kia of Carson, which was named the No. 1 Kia dealership in the nation for the month of June, is currently building a second location on Recreation Road.

(Photograph by the Business Journal’s Larry Duncan)

whether the new state-of-the-art, 56,000square-foot theater will translate into sales increases for the mall.

Other new retail tenants that recently opened at the mall include a Rue 21, which is a men’s and women’s clothing store, and a Kay Jewelers. New restaurants include a Buffalo Wild Wings and Pieology Pizzeria, which opened last year.

“We’ve got a lot of exciting things going on at the mall,” she said, adding that the mall has “multiple” new leases up for signature for new tenants; however, Cruz said she can’t reveal their names until leases are officially signed.

Waite said that, according to the latest statistics, overall sales tax revenue for office supplies is down; however, sales at grocery stores are up 23 percent, adding that a new Walmart Neighborhood Market opened last year at 20226 Avalon Blvd.

Auto Dealerships uto dealerships in Carson, meanwhile, have experienced strong sales growth in recent years, a trend seen across the nation. According to Waite, recent statistics show that overall new vehicle sales in the city are up 13.5 percent this year as of March compared to the same time period last year.

John Raymond, Carson’s director of community and economic development, said auto dealers are doing “quite well,” adding that the Win Chevrolet dealership at 2201 E. 223rd St. is negotiating with the city to use property next to an RV dealer for vehicle storage.

“When your Chevy dealer needs more room for more cars because they’re selling more cars, that’s a pretty good sign,” he said.

Last month, Car Pros Kia of Carson was named the No. 1 Kia dealership in the nation, according to Waite. He added that a total of three auto dealers, including Chevrolet, Kia and Honda, have had to lease space off site for parking and vehicle storage to accommodate the rise in sales.

“The biggest problem they have is lack of space,” Waite said. “That’s just what happens when things are happening like this.”

Kia is the only auto dealership in Carson that is expanding, with construction already underway at a site on Recreation Road. City officials said the auto dealer is still deciding whether it will completely relocate to the new location or keep its existing location at 21243 Avalon Blvd.

A

Tourism/Hospitality he Doubletree by Hilton, Carson’s only full-service hotel, is also seeing sales increases. Greg Guthrie, who was hired recently as the hotel’s new general

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The Doubletree by Hilton in Carson, located at the Carson Street exit adjacent to the 405 Freeway, is expected to experience a 10 percent increase in sales growth this year over last year as the local economy continues to improve, according to General Manager Greg Guthrie. The hotel is part of the Carson Civic Center complex. (Photograph by the Business Journal’s Larry Duncan)

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July 21-August 3, 2015

manager, said sales are expected to grow this year by at least 10 percent over last year, which is higher than what experts predict for the region. He attributed the increase to an improving local economy.

“I think business in general has been doing very good in the area,” Guthrie said. “The experts are predicting about a 6 or 7 percent increase year over year.

We’re actually doing quite a bit higher than that.”

He said the hotel is mainly considered a corporate hotel that serves a wide array of businesses in the area, but Guthrie added that it’s also frequented by tourists visiting California because of its central location for attractions in Los Angeles, Long Beach and Orange County.

“The central location is very important,” he said. “And, also, the amount of business that’s just in the Carson area is huge. So there is definitely a lot of opportunity.”

Guthrie added that visitors to Carson’s StubHub! Center also use the hotel during soccer matches and other events. With all of the new developments and attractions in Carson, occupancy levels should continue rising, he said, adding that the hotel has been more aggressive on room rates.

“Carson’s a good place to be right now,”

FOCUS ON THE CITY OF CARSON

Guthrie said. “The city is putting a lot into the community and trying to make it a better place, a more business-friendly place. We are continually trying to do things to draw more businesses to the area, and there’s a lot here already.”

Oil Industry ith a major drop in the price of oil in the last year, oil production in Carson has slowed significantly as in many surrounding cities.

California Resources Corporation (CRC), which is a spinoff of Occidental Petroleum (Oxy), decided in January to withdraw a major oil-drilling proposal.

The plan had called for drilling more than 200 oil wells in the Dominguez Oil Field using directional drilling techniques.

William Blair, manager of security and external relations for CRC, said the company had concluded earlier this year that the energy project was not economically viable based on the price environment for oil, adding that as of this month the status remains the same.

“California Resources Corporation (CRC) has concluded that our proposed Dominguez energy project is no longer

W

practical in the current commodity price environment, and we are asking the city to stop processing the project,” he said in an e-mail to the Business Journal.

“We have greatly appreciated the opportunity to get to know and work with the Carson community, and the vocal support of so many Carson residents. CRC will retain our strong Southern Califor-

Long Beach Business Journal 27

nia presence with about 700 employees throughout the region.”

Blair said that CRC expects oil production to remain flat in Carson over the next year. Waite noted that the drop in oil prices has also negatively impacted Shell Pipeline since it owns oil wells as well.

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28 Long Beach Business Journal

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FOCUS ON THE CITY OF CARSON

Brissa Sotelo-Vargas, manager of public and government affairs for Tesoro Corporation, is pictured with Dan Carlson, vice president of operations and technical, in front of a fluid catalytic cracking unit at the company’s refinery in Carson purchased from British Petroleum in 2013. Tesoro hopes to integrate the oil refinery with another refinery in Wilmington. (Photograph by the Business Journal’s Evan Patrick Kelly) (Continued From Page 28)

The 221,050-square-foot building at 901 E. 233rd St. is located within the Watson Industrial Center in Carson. The building, which was completed in January, is owned by Watson Land Company. (Photograph by the Business Journal’s Larry Duncan)

which in 2013 purchased the massive British Petroleum (BP) oil refinery located on approximately 930 acres straddling Carson and the City of Los Angeles, is one of the leading providers of motor fuels in Southern California.

Kenneth Dami, Tesoro’s director of public and government affairs, said the company is investing $425 million into the refinery to connect it with another refinery in Wilmington in order to make operations more efficient and effective, and to “meet the demands of the marketplace.”

The project, he said, is currently in the environmental review process with the South Coast Air Quality Management District (SCAQMD). Dami said an environmental impact report (EIR) on integrating the two refineries should be released soon.

Tesoro’s refinery receives crude oil at its marine terminals at the Port of Long Beach and ships products throughout Southern California, Arizona and Nevada through its connections to several product distribution pipelines and terminals, according to Tesoro’s website.

Industrial Real Estate lthough more than half of the land in Carson is taken up by industrial real estate, much of it is already occupied and there’s not much room to grow, as the sector has experienced particularly high demand in the past year.

According to Waite, the city’s overall vacancy rate for industrial real estate is 3 percent, which he said is “extremely low,” adding that the tight market correlates to rising activity at the local ports and an improving economy.

“I have people coming by every week at the minimum if not every day looking for industrial property,” he said. “And we turn them over the broker community.”

Jim Flynn, president of The Carson Companies, which owns 8 million square feet of industrial property in California,

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This building at 1421 Charles Willard St. in Carson, located within the Dominguez Technology Center, is available for lease. The building is owned by The Carson Companies. (Photograph by the Business Journal’s Larry Duncan)

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July 21-August 3, 2015 said two large spaces totaling 360,000 square feet are soon becoming available at the Dominguez Technology Center in Carson, as two tenants are expanding to larger buildings.

“We have several availabilities mainly because our tenant base is growing and we are moving tenants from smaller spaces to bigger spaces,” he said, adding that The Carson Companies is currently 98 percent leased.

Epson, which provides robots, printers and other products for manufacturing operations, is moving from an 180,000square-foot building to a nearby building that is nearly twice the size at 338,000 square feet. Flynn said Epson has been located in Carson for 12 years and will remain because of the location.

Another business, which imports and builds furniture, however, is relocating out of the city from its 180,000-squarefoot facility to a 300,000-square-foot building in the Inland Empire in Fontana, he said, adding that, with such a tight industrial real estate market locally, some businesses are finding more availability and lower rates elsewhere.

Long Beach Business Journal 29 Lance Ryan, senior vice president of marketing and leasing for Watson Land Company, which owns millions of square feet in three master-planned business parks in Carson, said the company has some open property but very little space is available.

“We are marketing space, but, in terms of overall supply for the South Bay market and getting into the Carson submarket in particular, this is probably the lowest vacancy we’ve seen historically,” he said.

“There’s very, very little property available for lease, or for sale for that matter.”

Ryan said the challenge for many users this year will be finding available space as the summer ends and the Christmas season approaches. He said Watson owns 17 million square feet of space mostly occupied by companies that are providing distribution services or distributing their own products to retail stores.

“Usually, there are a lot of companies looking for short-term space for overflow storage, and the challenge this year is that there really isn’t a lot of floor space available,” he said. “We have just a few buildings available and we’ve had heavy activity on all of them.” ■

California State University, Dominguez Hills Emphasizes Community Partnerships, Student Success ■ By ANNA MAVROMATI Contributing Writer roviding students with a solid, wellP rounded education that will help guide them toward a fulfilling career and future are, of course, the priority of everyone associated with California State University, Dominguez Hills. But the university, its students, professors and administrators also recognize that they have a responsibility to be actively involved with the community and the city.

“Our campus is fully engaged in the community, and we work really closely with the city as a partner in a variety of areas that are resident-focused and help move the city forward,” University President Willie Hagan told the Business Journal. For example, the university has for years partnered with Carson’s cultural arts and music programs, civic engagement projects and health and human services initiatives. This year, Hagan said, the university is also partnering with Carson to host the Special Olympic World Games.

The university, located adjacent to the StubHub! Center, also has a major economic impact on the community, with 1,646 employees (868 full-time and 778 parttime), a number that continues to increase as university enrollment grows, Hagan said.

“Not only is the university seeing a high number of applications,” Hagan said, “but, in the past few years, retention rates have also spiked.” In fact, the university currently has the highest first-year retention rate for freshman in the last 22 years at 79.9 percent, and a first-year transfer retention rate of 85 percent.

“That is a great thing,” he said. “We want our students to persist and graduate.”

At the university’s first commencement in 1967, four students earned their degrees. By 1970, there were 260 graduates.

Now there are more than 95,000 graduates from Cal State Dominguez Hills and, according to Hagen, approximately 58 percent of them live within 25 miles of the campus. He said that many of the graduates are Carson natives who choose to remain in the community. “Our students stay local because they see the benefit of using their degrees to further enhance the community in which many of them were raised,” Hagan said.

The university also places special emphasis on community service programs for students. Hagan said it helps students use skills from the classroom in the real world, increases their understanding of the importance of their communities and their civic engagement, and research has shown that it even increases graduation rates.

These community service efforts naturally benefit the City of Carson as well.

Some programs involve students doing community-based research or working archeology projects at the local history museum, The Dominguez Rancho Adobe Museum. “These students also act as models for youth in understanding that college is there for them to improve their lives or the lives of their families,” Hagan added.

Hagan noted that Cal State Dominguez Hills has a diverse population of students, and that many of them are the first in family to attend college. Many of them are also low-income commuters who work or take (Please Continue To Page 30)

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30 Long Beach Business Journal

July 21-August 3, 2015

FOCUS ON THE CITY OF CARSON

Willie Hagan is president of California State University, Dominguez Hills (CSUDH), located in Carson. Hagan said in addition to its commitment to student achievement and success, the university works closely with the local community, for which it is an educational and economic resource. (Photograph by the Business Journal’s Evan Patrick Kelly) Top left: This sculpture outside the University Library at CSUDH promotes understanding, respect and collaboration among cultures. Bottom left: The library at CSUDH provides students with access to 440,000 print books, 200,000 e-books, 26,000 online periodicals and 650 print periodicals. (Photographs by the Business Journal’s Larry Duncan) (Continued From Page 29)

care of families while earning their degrees. In 2013, 73 percent of the university’s students were Pell Grant-eligible (low income). “To that end, we accommodate the diversity among our students by viewing their education as an opportunity and not as a challenge,” Hagan said. “We build

strong programs and robust services that speak to their promise and not to their risk.”

Hagan said that the strength students have to persevere through college in spite of such challenges further benefits them in the end. “Going to college, taking care of family and working, while noble and challenging, can also serve as catalysts for per-

■ By ANNA MAVROMATI Contributing Writer he City of Carson is home to a number of artistic venT ues that host events ranging from theatrical performances and live sports to elaborate wedding ceremonies. Even the shows and galleries hosted by Cal State Dominguez Hills are designed for a community audience that extends beyond the university and into the city, said Bill DeLuca, coordinator of the university’s theater program.

“The walls are very low around Dominguez Hills,” he said. “We have that advantage, I think, of being able to go beyond the walls of the university and go into the community.”

Many notable campus performances take place at the University Theatre, a 485-seat complex that hosts lectures and cultural programs, as well as four performances a year from the theater department. The university also houses The Edison Studio Theater, a black box theater for small and experimental performances.

DeLuca said that the university’s theatre and dance department performances often examine relevant social and environmental issues, and that the range of shows performed is as diverse as the Carson community. The university hosts the Black Theatre Program as well as Teatro Dominguez, a theater troupe that travels to different local schools throughout the year to perform educational plays.

“What I love about Carson, is Carson really does embrace a diversity that you don’t really see in too many communities, and they understand the importance of the arts because of that,” DeLuca said.

Kathy Zimmerer, director of the university’s art gallery, said the gallery is one of the major art galleries in the South Bay, and is open to the public. The gallery hosts six to eight exhibitions a year and also collaborates with the Carson Boys & Girls Club to seek funding and provide art workshops at Carson High School.

Carson is also home to the Carson Center, which hosts events such as weddings, seminars, conferences and com-

sistence,” he said. “Our students learn how to persist and they are resilient.”

The university focuses on keeping its programs strong and its faculty and staff engaged, and on creating aggressive strategic plans concentrated on student success, Hagan said.

The university is also looking to expand,

Carson’s Arts And Entertainment Community Thrives

munity activities for residents of all ages. Carson Center Supervisor Regina Ramirez said that most of her employees are Carson natives who are excited to be involved in the lives of other residents.

“We serve the residents from the cradle to the grave,” Ramirez said, sharing that the Carson Center also hosts baptisms and quinceañeras (the celebration of a Latina girl’s 15th birthday). “Key family milestones happen here.”

The Carson Center – officially dedicated as the Juanita Millender McDonald Community Center after the former congresswoman – has been in the city since 1983, when the original architect designed it to have a Mayaninfluenced look with a pyramid-shaped roof. Ramirez said the Carson Center hosts anywhere between 50 to 100 weddings annually.

The facility provides 40,000 square feet of flexible meet-

and Hagan said he is continuing to look into public-private partnerships with local real estate developers. The university is particularly interested in expanding student housing and potential retail and development. “We are pursuing our options strategically with the mission of the campus at the forefront in driving our decision making,” Hagan said. ■

ing space, including a 12,000-square-foot ballroom.

The StubHub! Center, at 18400 Avalon Blvd. in Carson, is host to sporting events, concerts and youth programming, and houses an Olympic training facility. Tamala Lewis, community affairs director for StubHub!, said the venue has also hosted everything from children’s Easter egg hunts to “Pitch & Pale,” an event held every Friday with live music, food trucks and local craft beer.

The StubHub! Center is an AEG facility that opened in 2003 and includes an 8,000-seat tennis stadium, a 27,000-seat stadium for soccer, football and other athletic competitions, a track and field facility and an indoor Velodrome that seats nearly 2,500 people. The center is home to the LA Galaxy, the five-time MLS champion major league soccer team.

Lewis said that she sees Carson as a supportive community for arts and entertainment. She said Carson has been the setting for a number of historical events, including the 1910 Los Angeles International Air Meet (the first major airshow in the United States) and the 1984 Olympic Games.

“We are truly honored to be a part of the city’s history, growth and continued success,” Lewis said.

The Dominguez Rancho Adobe Museum is another notable Carson feature. Originally the home of the first family in the South Bay, the house has stood since 1826 and has been a museum since 1974.

Alison Bruesehoff, museum director, said the museum hosts numerous talks, lectures and panels. Saturday, July 25, at 1 p.m., the museum is hosting a talk about Filipinos and Hawaiians in L.A. and the South Bay. “The history [of the museum] is the community’s history, and that is very important for people to know and to be able to share,” Bruesehoff said. “The South Bay has a rich history and this museum is where a lot of it started.”

The museum is open for guided tours on Wednesdays, Saturdays and Sundays at 1, 2 and 3 p.m., and those same hours the first Thursday and Friday each month. For more information, call 310/603-0088. ■

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