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Retail sales dip for second time in 2 months

WASHINGTON — Consumers, battling soaring gasoline prices and a slumping economy, cut back further on their spending in April. The Commerce Department reported that retail sales dipped 0.2 percent last month, right in line with economists’ expectations. It was the second drop in the past three months and was led by a 2.8 percent decline in auto sales, the biggest setback in this category in 10 months. It reflected the problems that automakers are having as a weak economy and soaring gasoline prices cut into demand for new cars. For the full story visit http://www.latimes.com/business/nationworld/wire/ats-ap_business12may13,1,6836876.story

Downturn Casts Shadow on Summit

By NADRA KAREEM and LINDA COBURN Staff Reporters The threat of a national recession is looming over Valley businesses. Nearly 40 percent of the 125 businesses surveyed in the San Fernando Valley Economic Report cited the current economic downturn as their most pressing concern. This is remarkable, considering that last year no business surveyed cited the economy as being of particular importance to them. “That wasn’t even on the radar,” economist Daniel Blake said during his discussion of the report at the 2008 San Fernando Valley Economic Summit, held May 8 in Universal City. Whether the country is indeed in the midst of a recession was discussed throughout the summit, presented by the Economic Alliance of the San Fernando Valley and California State University, Northridge. “The Fed chairman said even last week, ‘we are not in a recession,” said Los Angeles Mayor Antonio Villaraigosa, who gave a welcome during the event. “Warren Buffet says we are.” The mayor said that the financial crisis gripping the nation gives the City of Los Angeles the opportunity to change how it conducts business. The newest shift the city has made in the business realm is the May 8 launch of its new Web site, Los Angeles Business Solutions. The site is being billed as a one-stop shop for meeting the needs of new businesses. With a URL of business.lacity.org, the site provides information on real estate development, contracting and partnership opportunities and business incentives, to name a few. Changing the way the city does business also includes engaging in smart growth, according to the mayor. This means creating pockets throughout the city where people can shop, work and live. On the downside, however, a shift in business protocol also means layoffs. Mayor Villaraigosa has proposed eliminating the city of 767 staff positions. This is the first time the city has had a reduction in force since the early 1980s, the Mayor said. In contrast, many Valley businesses will expand the number of jobs. Nearly 40 percent of businesses surveyed in the San Fernando Valley Economic Report expect to increase the number of jobs they have available in the next 12 months. Moreover, about the same percentage of businesses expect to expand their facilities this year. Also remarkable is that nearly 50 percent of businesses surveyed expect to pay workers more in the near future. At this year’s summit, Blake, director of CSUN’s San Fernando Valley Economic Research Center, relied heavily on the survey findings rather than giving a full-on forecast. That’s because new security measures introduced by the California Economic Development Department and the Bureau of Labor Statistics prevented summit researchers from obtaining the necessary data from local, county and state sources to develop a comprehensive economic forecast. The survey, however, was comprehensive in that it represented businesses in the aerospace, biotech, business services, entertainment, health services, manufacturing and wholesale trade industries. According to Blake, these industries are important because they are capable of growing in spite of the economic downturn. They have what is known as a “multiplier effect,” which means that, if activity fluctuates in any one of them, other industries such as retail, trade, real estate and finance could be affected. The good news for the Valley is that the survey found that the overwhelming majority of these businesses have no plans to leave the area; although, a significant number , 19 percent , are considering moving away in the next two years. Also of concern is that 10 percent of businesses reported having no strong ties to their Valley locales, which makes them vulnerable to moving elsewhere. During the summit, Blake also presented 2006 Census data about the San Fernando Valley. That is the most recent year for which information is available. In 2006, the Valley had an unemployment rate of 5.1 percent, a figure lower than the State of California’s rate of 6.6 percent and the national unemployment rate of 6.4 percent. Blake cited rising unemployment rates all around as a sign of a pending recession. “You need more than rising unemployment to really set off a recession, but all the pre conditions are there,” he said. Economist Richard A. Weiss, chief investment officer and executive vice president of City National Asset Management, described the nation’s financial woes in another way. “The U.S. economy is ill right now. It has the flu,” he said. Weiss cited declining corporate profits and widening credit spreads as signs that a recession is imminent. “Wait until credit spreads widen to the double digits,” he said. Then, there will be no doubt that the economy is in recession, implied Weiss, who also discussed interest rates, consumer confidence and other factors to make his case. It’s difficult to say whether Valley workers will be prepared to weather a recession. A considerable number of them 34.3 percent work in management and professional occupations. But the Valley falls short to the state as a whole, which counts 34.7 percent of workers in these fields. The national rate is 34 percent. In terms of higher education, Valley residents outshine both the state and the nation. Nearly 30 percent of Valley residents have at least a bachelor’s degree. In comparison, the State of California reports 29 percent of residents having such a degree, and the nation counts 27 percent of residents having a bachelor’s or higher. The cost of living in the Valley would be a concern if the nation were to find itself in a full-fledged recession. That’s because it’s more costly to live in the Valley than it is in the state as a whole and the country in general. Here, 48.4 percent of residents own homes that cost greater than 35 percent of their income. Compare this to the state in which 41.6 percent of residents are in the same predicament and the country, in which 27.9 percent of residents are. Renters here fare no better. In the Valley, 47.4 percent of residents have rents that amount to more than 35 percent of their income. In the state, this figure is 43 percent, and, in the nation, the figure is 37.6 percent. As for single-family residential real estate, prices have plummeted, but buyers are either still wary and waiting to see where the bottom is; or they simply cannot qualify for mortgage financing. When it comes to the non-residential sectors of the real estate market, the common thread is that owners are in denial and buyers are sitting on the sidelines. This means asking prices are still artificially high and few transactions are happening when it comes to multi-family, industrial, office and retail properties. Multi-Family The San Fernando Valley is home to 12.8 percent of the total number of apartment units in L.A. County, states the CB Richard Ellis report on the multi-housing market. It’s still not enough: currently the county’s vacancy rate is just a hair over 3 percent and the 11,155 new units coming online in 2008 will tease the vacancy rate up less than 1 percent by the end of the year. Taking a look ahead for the next two years, the CBRE report shows that the 173,082 new units being constructed in the San Fernando, Santa Clarita and Antelope valleys would put some pressure on rental increases. Retail The 11.2 million square feet of shiny new retail space currently under construction in the Valley will be absorbed quickly, according to the NAI Capital retail market report, but much of that will be migration from older properties, meaning vacancy rates could get as high as 4.5 percent. Prices for retail properties are holding steady, with cap rates ranging from 5 percent to 6.5 percent. The third quarter of 2008 should be when retail sales start to gather momentum again, predicted Leyner. Industrial/Office The good news is that industrial real estate, despite a slight increase in vacancy rates (to 2.8 percent), and a slight decrease in rents (to $0.68 triple net), is holding its own, said George Stavaris, senior vice president of Grubb & Ellis. The bad news is that the office market has taken a serious turn for the worse, with vacancy rates rising into the double digits and negative net absorption of 315,000 square feet in the first quarter of 2008.

CHAMBER BRIEFS

Canoga Park/West Hills: On April 29, The Canoga Park/West Hills Chamber of Commerce presented an evening with City Attorney Rocky Delgadillo at the Clyde Porter West Valley Playhouse. The City Attorney told of his dedication to fighting crime and improving the quality of life in Los Angeles. He also talked about his fight to reduce the city’s civil liabilities and awards given to plaintiffs in suits against Los Angeles. He said his gang injunctions have contributed to a steep decline in crime and his crackdown on gang bangers has lead to a reduction in the number of self identified gang members in the city. His Safe School initiative is aimed at keeping kids out of gangs and Operation Bright Future, is an anti-truancy program that targets sixth graders with excessive absences and provides education to parents about the importance of education and holds them legally responsible to insure their children go to school. Delgadillo told those in attendance that he is using every resource at his disposal to fight child, elder and dependent adult abuse, immigration fraud, and environmental crimes, particularly in highly populated urban centers. This was the first in a series of evenings that the Chamber will be hosting to bring news and policymakers to the public. Van Nuys: The Greater San Fernando Valley Chamber of Commerce is holding its 25th Annual Clean-Up Day on Saturday, June 7. Each year, the Chamber teams with 300 members of Valley community groups, local businesses, and residents to help clean and beautify the San Fernando Valley. The Church on the Way’s parking lot will once again serve as the staging area from which groups will be sent out to grids to make the community shine. The Clean Up begins at 8:00 a.m. and ends at 12:30 p.m. Resolute in their efforts to make the Valley a cleaner and better place to live, work, play and shop, the Chamber has improved its Clean-Up Day by adding new elements to the program. One new facet is the Chamber’s “Go Green Community Showcase!” At the event, you can learn how to become a better, more eco-friendly resident and/or business by visiting the various booths, collecting ecological tips, and other helpful resources to make your Green existence a bit easer. Continuing in this Green theme, there will also be an E-Waste (electronic waste) & Household Hazardous Waste collection from 9 a.m. to 4p.m. that Saturday. This is an opportunity to safely dispose of various obsolete electronics and other hazardous materials. This includes all monitors, televisions, VCRs, radios, printers, computers, motor oil, batteries, and other toxic materials that can not be disposed of in the regular trash. The first 150 volunteers will receive a free t-shirt, and all volunteers will be treated to a continental breakfast and a lunch upon their return. Call the Chamber at (818) 989-0300 or visit www.sanfernandovalleychamber.com for more details. Woodland Hills/Tarzana: The Woodland Hills-Tarzana Chamber of Commerce Education Committee and El Camino Real High School partnered together to present a Career Expo for the 11th and 12th grade high school students at El Camino Real High School. Thirty four businesses spoke to over 500 students in an informal round robin atmosphere. They enlightened and informed the students about the various types of careers that are available within their field, the kind of education or training needed to enter that particular career, salary/benefits and a day in the life of that particular career. The Career Expo was kicked off by Councilman Dennis P. Zine, who presented the education committee with a certificate for their community outreach. He also spoke to the students about his career in law enforcement and government. Debbi Lund, Chair of the Education Committee, stated that the day was worthwhile for students and presenters. “These students are the future leaders and workforce of tomorrow,” she said. “We need to expose and educate today’s high school students so they are more prepared for the high demanding job market of tomorrow.” Calabasas: In observance of Employee Appreciation month the Calabasas Chamber of Commerce hosted the Chamber’s annual Golden Lasso Employee Appreciation Luncheon at the Calabasas Country Club. The afternoon featured special guest Stephanie Edwards who addressed the group with humor and inspirational messages. Speaking to the employers and their honored guests, Stephanie emphasized that it is most important to always remember your past because it helps build your future, not only in business but in your personal life too. Sherman Oaks: On May 15, the Sherman Oaks Chamber of Commerce will hold its monthly luncheon, featuring special guest speaker LAUSD School Board Member and City Prosecutor Tamar Galatzan. The meeting, sponsored by Peter Godefroy of Dragonfly Design and Mike Chibidakis of Citi Smith Barney. is at Caf & #233; Bizou, 14016 Ventura Blvd. Call the Chamber office, 818-906-1951, for reservations. Encino: The Encino Chamber of Commerce is joining with Ability First, Parkinson’s Resource Organization and Phillips Graduate Institute California Family Counseling Center, three of the Chamber’s non-profit organizations in hosting An Evening of Wine on June 10 at the Hilton Woodland Hills. The event will be held in the ballroom from 5:30 p.m. to 9:00 p.m. It is an opportunity to learn more about wines you may not have sampled, enjoy some old favorites and entertain business associates, clients and friends. There will be wines for all palates, from Napa Valley in California and throughout the world. The pouring will be accompanied by information regarding the type of grapes used for the wine and the taste they produce, the history of the growing region and which foods complement each wine. Appetizers and a pasta bar will also be served throughout the evening. Musical entertainment will be provided by pianist Marvin L. Jones, and there will also be silent and live auctions. For sponsoring or ticket information, call the Chamber at (818) 789-4711. Universal City/North Hollywood: The UCNH Chamber of Commerce is holding several events in May. On Thursday, May 15 the Chamber is having an After-Work Mixer 5:30 p.m.-7:30 p.m. at Avery Schreiber Theatre, 11050 Magnolia Boulevard, North Hollywood 91601.On Tuesday, May 27 there will be the monthly Chamber of Commerce Networking Breakfast 7:30 a.m.-9:00 a.m. at The Sportsmen’s Lodge Hotel, 12825 Ventura Boulevard, Studio City 91604. Guest Speaker, Chamber Past-President and President of SADA Systems, Inc. Tony Safoian. His topic will be, “Don’t Worry About I.T”. He will offer advice about how not to be concerned about I.T., but rather to focus on your business. Attendees will learn how Google Apps helps. For more information, contact the UCNH Chamber at (818) 508-5155. Ivy Weiss

Development centers offer guiding light to small companies

Nervously practicing her pitch for hours in her home office, the co-founder of educational toy maker Budding Brilliance Corp. tried not to think about the dollars at stake in her presentation to a group of Tech Coast Angels, an influential Southland organization of wealthy investors. Eight months of intense preparation from equity experts, courtesy of TriTech Small Business Development Center in Irvine, had polished Tina Davis’ spiel. Watching herself on video helped curb her unconscious swaying and jittery hands. In the end, her efforts didn’t win the hoped-for investment, but the 15-minute pitch in November 2006 resulted in something almost more valuable for Davis and business partner, Jennifer Cook: The angels validated their idea for a toy that evaluates how children learn, offered a detailed critique of the presentation arranged by TriTech and extended an invitation to pitch again. For the full story visit http://www.latimes.com/business/la-fi-smallbiz12-2008may12,0,7348052.story

Antelope Valley Filled With Many Stories Good and Bad

Within its 2,200-square mile boundaries, from where the highway comes out of the mountain pass south of Palmdale to the expanse of desert north of Lancaster and the military bases to beyond the state poppy reserve in the west, the Valley tells stories of hopes and dreams both realized and unfulfilled. The empty stretches of land on the east side of Palmdale stand as a silent reminder to the ambitions for an international airport that, well, never took flight. Still, the story of Palmdale is one of resilience and persistence, said its mayor, Jim Ledford. “It’s recognizing we are the future for Southern California,” he added. Along the Sierra Highway, what had been the main road to and through the Valley before the freeway, the small, independent motels tell the story of bypassed commerce; their names – the Tropic, Sands, Sahara, Aloha – evoking images of exotic getaways. Further north, into the desert, the Mojave Spaceport writes the next chapter in the region’s rich aerospace history with the development of private spacecraft for the emerging New Space industry. A decade ago William Finnegan told a story about the Antelope Valley that few wanted to hear about or acknowledge – of white teens and young adults whose downward mobility consisted of drugs, easy sex, lack of parental supervision and involvement in skinhead gangs. “The Unwanted” first appeared in 1997 in The New Yorker magazine. Finnegan later expanded it into the final chapter of his book, “Cold New World: Growing Up in a Harder Country.” The Antelope Valley of “The Unwanted” suffered from the loss of aerospace jobs after the end of the Cold War brought cuts in weapons programs. USA Today branded the Valley “the foreclosure capital of the world.” High school seniors no longer relied on a well-paying job at one of the aircraft manufacturers. The Antelope Valley had become, Finnegan wrote, the place where movie companies came to burn down or blow up houses. For a scene in “Lethal Weapon 3,” filmmakers used an abandoned housing tract at 30th and J Street in Lancaster: “Mel Gibson and Danny Glover went on a memorable rampage through the place, which was now a wasteland (tumbleweeds, shopping carts, graffiti-covered sofas) surrounded by a high brown wall.” At that same intersection in 2008 one empty corner remains, the others contain vine-covered walls surrounding single-family homes that haven’t exploded or been set on fire. At the time the magazine story first appeared, Finnegan was accused of selective reporting and blowing out of proportion the problems skinheads posed in the Valley. “The story is an absolute misappropriation of writer’s ink,” then-Lancaster Mayor Frank Roberts was quoted in the Los Angeles Times. Today, officials need a reminder of who Finnegan is and what he wrote about. Whoever orders books for the area libraries holds no hard feelings. The county regional library in Lancaster has two copies of “Cold New World” on its shelves. There is one copy at the Palmdale Library. The Valley has moved on from its depiction in Finnegan’s writing although elements remain. A housing tract can rise on a wasteland but attitudes toward race, drugs, and the future don’t change as fast. Just as when Finnegan spent time there, the Valley once again faces tough economic times. Unlike the 90s, this time it is not about job cuts at the major aerospace companies. This time it is driven by the collapse of the sub-prime mortgage market. While the Valley does not take back the title of “foreclosure capital of the world” the numbers remain high, particularly on the east side of Palmdale. Of 12 major population areas in Southern California, the Antelope Valley ranked second behind the Victor Valley in the number of homes in default per 1000 (38.3) and the number of homes in foreclosure per 1,000 (15), according to Mark Schniepp, director of the California Economic Forecast. Still, the situation has not reached the proportions it did in the mid-1990s. In 1997 foreclosures peaked at 4.81 percent of all total housing units. In 2007, foreclosures accounted for 2.57 percent of total housing units, according to statistics provided by the Greater Antelope Valley Economic Alliance. However, Alliance President Mel Layne said, if the trend continues at the current level foreclosures may exceed those in 1997. “I think (foreclosures) will reach a peak this year,” Layne added. As the head of an organization that promotes business, the story Layne wants told is the Antelope Valley is a good place for growing companies to relocate. He’s talking manufacturers, companies that make something other than hamburgers or chicken sandwiches of which there is an ample supply already. In the shopping areas in and around the Antelope Valley (14) Freeway little difference is found between Palmdale and Lancaster as one drives past the same chain stores and restaurants. According to the Schniepp’s economic report the retail trade and lodging and food service sectors combined for more than 20,000 wage and salary jobs in the Los Angeles portion of the Antelope Valley in 2007. In the same year the big three aerospace companies in Palmdale had a fraction of that number. The numbers in the report don’t take into consideration that one worker may work multiple jobs; that after ending a shift at one chain restaurant they change into the uniform shirt of a second. While many of these jobs exist, with more coming this year, they command some of the lowest average salaries in the Valley – $24,200 in retail trade, $14,000 in lodging and food services. If Palmdale and the whole Antelope Valley is the future, that does not give much to build a future on. The service industry jobs should only be part of the story and not the entire story of what the Valley offers. Conditions do change. Persistence and resilience have their places in the stories. Maybe someday one of those service employees opens their own restaurant to give a spark of independence among the chains. And maybe one day the empty corner at 30th and J Street will have something on it other than weeds. Those would be good stories indeed. Staff Reporter Mark Madler can be reached at (818) 316-3126 or by e-mail at [email protected] . Yes, he has spent time in the Antelope Valley.

AROUND THE VALLEYS

Woodland Hills The Valley Cultural Center will be hosting its 9th Annual Food, Wine & Micro-Brew Fest fundraiser from 5 p.m. to 8:30 p.m on May 15 at the Westfield Promenade in Woodland Hills. “The event always sells out in advance,” said Jim Kinsey, VCC’s president and CEO. “We have about 1300 people attend each year.” The $50 per person admission will allow guests free range of the food offerings from 28 restaurants ranging from Poquito Mas to Ruth’s Chris Steak House; spirits from 14 wineries and 5 microbreweries; and coffee, tea, smoothies and soft drinks for the teetotalers. “Once you’ve paid your entry fee it’s all you can eat and drink,” said Kinsey.” A wide variety of goods and services will be on the auction block, presented in both silent and live-auction formats. Some of the more unique items up for bid include a 12,000-square-foot vacation rental casa in Manzanillo, Mex. and an electric bicycle. All activities will take place under a 25,000-square-foot canopy that will be either air conditioned or heated, depending on the weather. “The temperature will be a comfortable 72 degrees,” Kinsey joked. This year presenting sponsor Westfield will have a section within the canopy to promote their new Village project. “It’s a very interesting, unique, interactive area,” said Kinsey, “and that’s all I can say about it.” All of the proceeds from the event go to support the VCC’s free programs including the very popular Concerts in the Park and Movies in the Park series, the annual July 4th extravaganza, and the Monday Morning concert program for K-12 students. The 2008 concert and movie schedules are now up on the VCC website (at www.valleycultural.org.) Group tickets are available for $45 each if 10 or more tickets are purchased. Only those 21 or older will be able to enter. —Linda Coburn SAN FERNANDO VALLEY Glendale Launch: The Cheesecake Factory Inc. announced the May 2 opening of its 140th Cheesecake Factory restaurant at the Americana at Brand in Glendale. It contains approximately 11,500 sq. feet and 330 seats. The Cheesecake Factory Inc. is headquartered in Calabasas Hills. Sylmar Fest: Los Angeles Mission College’s award-winning Culinary Arts Institute held its annual Springfest Food & Wine Festival May 10. Participants were able to sample various kinds of cuisine and wines from more than 15 countries. A silent auction and raffles were also held. The event is coordinated by the Los Angeles Mission College Foundation, a support arm for the college made up of community members and civic and business leaders. Proceeds from Springfest went towards scholarship funds for financially disadvantaged students at Mission. Big Sunday: On May 4, Providence Holy Cross and Providence Saint Joseph medical centers hosted a picnic for clients of the Latino Senior Outreach Program (known as “Familias Ayudandos Familias)” as well as their families and all of the program’s volunteers and their families in Veterans’ Memorial County Park in Sylmar. The project was sponsored by Big Sunday, which donated entertainment, transportation for the elderly, food, a petting zoo, games and crafts. Big Sunday sponsors “America’s largest city-wide volunteer day.” Last year the organization brought in 50,000 volunteers of different ages from Los Angeles and Orange Counties. Van Nuys Award: Ford Motor Company has awarded Superior Industries International Inc. in Van Nuys with its highest supplier honor, the 2007 World Excellence Gold Award. “This is the second year in a row that Ford has awarded Gold World Excellence honor to Superior,” said Steven J. Borick, chairman, CEO and president of Superior Industries. “We see this award as a symbol of the strong business relationship between our two companies that has endured for decades. We are proud to be recognized by Ford for our 2007 performance.” Woodland Hills Postage: Free one-cent stamps will be given away at PostalAnnex+ stores in Woodland Hills and Simi Valley through the end of the May. “It’s just our way of saying ‘thank you’ to our customers,” said Steve Goble, vice president of marketing communications for Annex Brands, franchisor of PostalAnnex+. First-class postage rates rise to 42 cents for the first ounce on May 12. For locations and store hours, visit www.Annex Brands.com. SANTA CLARITA VALLEY Valencia Volunteers: In celebration of National Healthcare Volunteer Week, Henry Mayo Newhall Memorial Hospital honored its volunteers during a recognition luncheon May 2 at the Hyatt Valencia. According to the Bureau of Labor Statistics, the value of volunteer time is estimated at $18.77 which translates to $998,602 in donated labor. “Our volunteers also spend hours knitting or crocheting hats and booties for babies born at Henry Mayo. We also have a Pet Visitation program and are actively recruiting volunteers for a music program,” said Maria Strmsek, volunteer services director. The Auxiliary, which includes many of the hospital’s in-service volunteers, also plays an active role in supporting the hospital. In April, 2007, the Auxiliary presented Henry Mayo Newhall Memorial Foundation with a check for $50,907. CONEJO VALLEY Agoura Hills Recognition: Symark International, developer of the PowerSeries information security solutions for managing privileged account access, has received the 2008 Tomorrow’s Technology Today Award presented by Info Security Products Guide, a publication about security-related products and technologies. The award recognizes security vendors with groundbreaking network security solutions that are helping raise the bar in information security, according to the company. “This highlights and validates our ongoing commitment to providing industry-leading systems access management solutions that bring significant value to our customers by helping them efficiently and cost-effectively eliminate insider threat and comply with a variety of federal and industry regulations,” said Symark CEO Bob Farber of the award. Thousand Oaks Consulting: Students in California Lutheran University’s Master of Business Administration (MBA) program will provide free consulting services to local businesses as part of their coursework. In “Consulting to Business,” the final course that many MBA candidates take, teams of students address business owners’ concerns about bookkeeping, financial plans, compensation, marketing, human resources and technology. This gives students a chance to tackle real business problems while providing a free service to companies. The class begins June 1. Interested business owners should contact Ronald E. Hagler, director of CLU’s MBA program, at (805) 493-3371 or [email protected]. Honors: California Lutheran University will recognize students during Honors Day Convocation May 16, 3:30 p.m., in Samuelson Chapel. Sierra College head women’s basketball coach Brandie Murrish will deliver the keynote address and receive the 2008 Outstanding Alumna Award. Under Murrish’s guidance during her first year as head coach, the Sierra College Women’s Basketball team finished second in the California Community College State Tournament. As a result, she was voted 2006-2007 Coach of the Year. During the ceremony, Scholastic Honor Society inductees, Southern California Intercollegiate Athletic Conference Scholar athletes, the Mark Van Doren Poetry Award recipient and the Dean’s Award recipients will be honored. In addition, newly endowed scholarship donors will be recognized. Westlake Village Honor: For the second consecutive year, radiology management services provider MedSolutions has received “An Outstanding Customer Service Experience” under the J.D. Power and Associates Certified Call Center Program. According to the company, MedSolutions was the first radiology management company to be recognized with this award, which it considers to be an outstanding achievement in light of the fact that there are 75,000 call centers in North America and to date only 40have been certified with the award. To attain the certification, MedSolutions passed a detailed audit of its recruiting, training, employee incentives, management roles and responsibilities and quality assurance capabilities. ANTELOPE VALLEY Palmdale Luncheon: The City of Palmdale had its annual Volunteer Appreciation Luncheon May 1 at the Larry Chimbole Cultural Center. Palmdale Mayor James C. Ledford, City Manager Steve Williams and Palmdale City Council members, volunteers and staff attended the event. During the luncheon, each volunteer received a thank you gift. The City of Palmdale has more than 300 volunteers on record. Volunteers contribute to different City departments including the Parks and Recreation Department, Palmdale Playhouse, Joe Davies Heritage Airpark at Palmdale Plant 42, Palmdale City Library, South Antelope Valley Emergency Services, Senior Center and the Volunteers on Patrol. SIMI VALLEY Simi Valley Distinction: PrintMasters in Simi Valley has been named the Small Business of the Year for the 38th Assembly District. The company was selected for this honor by Assemblyman Cameron Smyth, in conjunction with the California Small Business Association. “Small business is the backbone of California’s economy. I am extremely proud to present this award to such an exemplary business,” said Assemblyman Smyth. “This award gives me an opportunity to acknowledge, at the state level, all of the wonderful things they have done for the community.” The award will be presented at a special luncheon in Sacramento May 28. Remembrance: Holocaust Remembrance Day was observed May 4 at Mount Sinai Memorial Park in Simi Valley. During the event, Rabbi David Wolpe of Sinai Temple dedicated the Shoah Quilt of Memory and gave a keynote address. The Mount Sinai Shoah Quilt has been 18 months in progress and is comprised of memory squares from families all over the world. The event also featured a memorial candle lighting, a documentary about the quilt’s creators and the Long Beach Opera Company performing selections from “The Diary of Anne Frank” opera.

CHAMBER REPORT

On Monday, May 26, the Canoga Park/West Hills Chamber of Commerce will present its 20th Memorial Day Parade. The parade starts at 11a.m. The two-mile route begins at the corner of Sherman Way and Owensmouth Avenue, traveling east to Desoto where the route continues south to Vanowen then west to its end at Owensmouth Avenue. This year’s parade is dedicated to the “Spirit of Freedom”. It will begin with a military flyover. The Grand Marshal is Mayor Antonio Villaraigosa and once again, the Honorary Parade Chair is Councilman Dennis P. Zine. Other dignitaries who will be part of the day’s festivities include Congressman Brad Sherman, State Senator Alex Padilla, Assemblymember Lloyd Levine and County Supervisor Zev Yaroslavsky. Military units will be prominent. There will be a visit from Ronald McDonald, the Reel Cowboys who are comprised of actors and stunt people who have appeared in western films over the years, the Shriners, the Reseda Buccaneers as well as other surprise and special guests. The Parade Chair is Jack Dawson, Princess Hardwood Flooring and his co-chairs are Joe Andrews, Prudential California Realty and the Walk of Hearts Foundation and Mike Sirota, Woodland Printing. Many community volunteers donate their time to present a line-up that will feature Military Color Guards, marching units, youth groups, dignitaries, antique and classic cars including Al Mooney and his 1953 Red Mercury Monterey Convertible, bands from schools around the Valley, and equestrian entries. There will be professional judging with awards going to 1st, 2nd, and 3rd place for each class with sufficient entries. If you would like to volunteer before the event or the day of the event, contact the Chamber Office at 818-884-4222 or E-mail at [email protected]

Labor Strife Embroils Local Health Care Industry

For health care organizations and labor unions, the past several weeks have been contentious, with strikes and lawsuits adding fuel to the fire. In mid-April, tensions between the California Nurses Association (CNA) and the Service Employees International Union (SEIU) reached a fever pitch when the former filed a restraining order against the latter, accusing the union of harassment. The restraining order was ultimately thrown out, but now CNA faces a Strategic Lawsuit to Prevent Public Participation (SLAPP) filed by SEIU to pay for the attorney’s fees and damages stemming from the restraining order. “The temporary restraining order was nothing more than a publicity stunt,” SEIU Spokeswoman Lynda Tran said. “It really speaks volumes that the Alameda County (Superior) Court threw it out.” Tran said that CNA’s anti-union campaigns have interfered with workers’ attempts to unionize. “I think that’s a fundamental problem for working people to have.” Moreover, SEIU believes that CNA’s tactics constitute a violation of First Amendment rights. Accordingly, the group hit CNA with an anti-SLAPP suit, which aims to prevent organizations from stifling the free speech of critics. “California’s anti-SLAPP legislation is designed to ensure organizations like the CNA cannot stand in the way of the First Amendment rights of SEIU workers or anyone else simply because they don’t like being criticized,” said Stephen Berzon, a partner of Altshuler Berzon LLP, the San Francisco-based law firm which is representing SEIU in the case. During the SLAPP hearing, which is scheduled to take place around May 14, it will be determined if CNA must pay SEIU for the cost of attorney’s fees and damages. CNA Spokesman Charles Idelson denies that his organization was involved in any wrongdoing and that the restraining order it filed against SEIU was a mere publicity stunt. “There are very broad protections in the law for labor to participate in freedom of speech,” Idelson said. “What SEIU has done they’ve abused those protections by hiding behind labor law to threaten and harass registered nurses. Is it freedom of speech to be stalking people, to send in teams of people to follow them on the nursing floors, to follow them in their cars, to go to their house and scream at their windows? Is it freedom of speech or harassment?” Idelson admitted that one of the purposes of the restraining order was to alert the public to what he views as SEIU’s series of missteps. “It certainly brought to public awareness the true nature of how they treat their opposition, and, therefore, we applaud the fact that the restraining order was issued and was in place for some time,” he said. “It gave respite to some of our members. They did not have to experience the harassment and stalking that so characterized SEIU’s response to our raising our voices in opposition to their agenda.” During the SLAPP hearing, Idelson said that CNA plans to defend and protect its members against the labor union. Another conflict The conflict between SEIU and CNA isn’t the only health care-related one in which the labor union is involved. Currently, SEIU is mobilizing security workers who work for Pasadena-based company Inter-Con, which contracts with local Kaiser hospitals, including in Woodland Hills and Panorama City. In April and, again, between May 6 and May 8, the security workers at local Kaiser hospitals went on a strike initiated by what they consider to be unfair labor practices. Such strikes last for a set period of time, but can continue being held periodically until the issues at hand are resolved. SEIU Spokeswoman Jennifer Kelly said that the impetus for the strike is that the 1,500 security officers employed by Inter-Con who protect Kaiser facilities and medical buildings don’t have health care for their families, paid bereavement leave and related benefits. The security officers are the only group of workers affiliated with Kaiser who don’t have a union, according to Kelly. “They have been struggling for about two-and-a-half years to form a union,” she explained. “The only response they’ve gotten is that their supervisors have threatened and intimidated them and spied on them. Workers were reprimanded for trying to form a union.” A union is necessary to ensure that the security workers are on par with other Kaiser workers, Kelly asserted. “We need both Inter-Con and Kaiser to make it a priority for these security officers to have a voice and job and paid family health care and get to the same level as other Kaiser workers,” she said. “They make $9 an hour. They don’t have paid sick days. Kaiser janitors make at least a minimum of $11 per hour, and they have fully paid family health insurance and paid sick days.” Inter-Con did not respond to the Business Journal’s calls before press time, but Kaiser Spokeswoman Diana Halper did comment. “This is a dispute which we hope gets solved very quickly,” she said. “SEIU and Inter-Con, in our view, this is something for those two entities to solve. Inter-Con has assured us that they will make sure we have adequate staffing, should SEIU make the decision to picket.” Given that, security will not be an issue for visitors to Kaiser facilities, according to Halper. “They will be safe,” she stressed. Kelly said that striking is a last resort for the security workers. “Nobody ever wants to go on strike, certainly not people who work in a hospital,” she said. Not every recent dispute involving health care organizations and workers remains unresolved. At the beginning of the month, American Medical Response in Lancaster reached a tentative labor agreement with the 295-member International Association of EMTs and Paramedics, bringing the workers’ days-long strike to a halt. “After several months of talks, we have reached an agreement we believe (will be) equitable for all parties, and we expect employees will fully ratify the agreement in the next few weeks,” IAEP National Director Matthew Levy stated. The agreement stipulates that employees’ wages will increase by 20 percent over the next four years, with initial increases being retroactive to November 2007. In addition, the company will make no changes to employees’ health care benefits through the end of this year.

NoHo Tower Reborn Again As Apartment Complex

When construction began in January of 2004, JSM”s North Hollywood high-rise “luxury living” project was called The Florentine and was slated to have 191 apartments on opening day, planned for the following year. As construction continued and the housing market got hotter and hotter, the company decided to convert the apartments to condominiums, changing the project’s name to NOHO 14. But when the project opens this summer, some three years behind schedule, it will have not a sales office, but rather a leasing office for 180 upscale rental units as the building has converted back to apartments. You wouldn’t know it from visiting the NOHO 14 website which still touts the building as “the only high-rise condominiums in the East Valley.” Ironically, the Community Redevelopment Agency just gave its final stamp of approval for the apartment-to-condo switch at a meeting on March 6. The amendment to the Owner’s Participation Agreement with the CRA states: “The Developer has stated that this request is based on a changing housing market in North Hollywood that includes a large number of rental units coming on line in the next 18 months, including this Project and other housing developments, as well as an increasing demand for for-sale housing.” Executives from JSM Capital and JSM Construction, the owner and builder, respectively, did not return calls for comment. Making the change from apartments to condos was “a big undertaking,” said Larry Walker, general superintendent for JSM Construction. For one thing, he explained, the parking ratio for condominiums is higher than for apartments, so an entire floor of residential space had to revert to parking. Every floor had to be reconfigured. But he said he’s getting things ready for sales and marketing to take over. “We haven’t got a firm date yet, but it should be pretty soon,” said Dick Jones, president of JSM Management Inc., about when leasing will begin. “In the next month or two. When we do we’ll be putting on a big splash.” When asked whether marketing high-rise rental units in the mostly low-rise Valley was going to be a challenge, Jones said he really wasn’t sure. “When you do something that’s unique it’s difficult to know how it’s going to come out, what the difficulties are going to be,” he said. “It’s really going to be an entirely new experience from a management standpoint, and also from a tenant standpoint.” Prices have not yet been set for the high-end units but the floor plans on the NOHO 14 website are all still valid. Seven are reserved for ultra-low-income renters, per JSM’s agreement with the CRA.

Building On the Future

The first spec home built and sold by R. Gregg Anderson overlooked the Pacific Ocean near San Diego. He would later build two skyscrapers and a tourist center with shopping mall in Maui. But for the past two decades, Anderson has sold homes in the Antelope Valley, on the edge of the desert. His Rancho Vista master planned community includes single-family homes, a golf course, and shopping center. Despite a downturn in the real estate market brought on by the collapse of the sub-prime mortgage industry, Anderson feels optimistic about the future of real estate in the Antelope Valley. Along with projects in San Diego, Hawaii and Beverly Hills, Anderson was in the joint venture that took the Albertson Ranch in the Conejo Valley and made it into what is now known as Westlake Village. He has been recognized as a Builder of the Year for Southern California, served three times as president of the Antelope Valley chapter of the Building Industry Association, and been involved with the Antelope Valley Board of Trade, where he met his wife. Anderson is also the owner of 37 race horses. Question: The real estate market has tanked over the past year. How has that affected your company and your development? Answer: It’s only beginning to affect it. We have been a residential marketer here for 20 years and we’ve gone through three different cycles of downturns. Each downturn has been significant for a year, maybe a little more. This one, we don’t know where the end is. I am out of product right now. We started with 1,300 acres and we built out. We are not going to have any residential effect. We still are affected by it in our shopping center interest, and in the entire community. Q: What made you want to build in the Antelope Valley? Was your long-term thinking this was going to be where the population was going to move? A: There were a number of things. We built previously, my partner and I, in Palm Springs, Beverly Hills, and San Diego. We felt, as many did, there was a crying need for affordable housing. The Antelope Valley offered that opportunity on a long-range basis. We were approached and offered the opportunity to buy Rancho Vista. It had been sold once before and hadn’t worked out. It was foreclosed on and the owners took it back and contacted us and we felt we could see an optimistic approach. Although it would require considerable hard money put in before the development could be started. We had to bring sewer and water, three and five miles respectively, to the property. There were no streets; no electric poles. It was started from scratch. Our timing wasn’t too good. By the time we finished the infrastructure that was the time when we had interest rates in the high teens and low 20s. Nobody was buying houses. So we ended up sitting for five years in a spot where we couldn’t build anything. When we did there was pent up market and business was good from the outset. Q: Will something similar happen this time, a pent up demand for housing when the real estate market and economy improves? A: Yes I do. I still feel the Antelope Valley is the most affordable housing in Southern California that is within a few miles of major markets like Los Angeles and San Fernando Valley. The demand is just incredible for the future. I think now the future is brighter for the Antelope Valley then it was when we made our original investment here. Q: Why do you think that? A: There is more infrastructure, there are more jobs available. The aerospace and defense industries are well located here and they have contracts that will carry on for at least a decade. We are finding more companies relocating here, so there are more jobs for people who live here who are not forced to commute. All the things are in place for tremendous growth. There are no statistics that show there is not a tremendous demand for housing. Q: At the recent Antelope Valley economic and real estate forecast, there were numbers given on foreclosures, primarily on the east side of Palmdale. Are you aware of any on the west side? A: Yes, there are some. It is more concentrated on the east side. One of the more interesting statistics that doesn’t get mentioned is every day you hear that foreclosures are at a record level. That is true. What has never been mentioned is how many of those foreclosures are homes that people bought and refinanced in the last five years and took money out of the house so it is more heavily encumbered than it was when they bought it. That is triggering a lot of these foreclosures. It has nothing to do with the real estate market except what was created by lenders being overly aggressive and selling these loans and buyers being overly aggressive and refinancing and spending that money instead of using it for other types of investment for something that might produce income. That is a significant statistic that should be looked at nationwide. Q: The Valley faces a potential of not having an adequate water supply. Did too much building take place too fast or were there other contributing factors? A: No, I don’t think so. In fact, I’m not sure there is a water shortage. What did happen was the water was not properly used. They did not replenish the aquifer here, which would be a big help. We are not getting an allocation as high as we were from Northern California that we are getting now as far as the Antelope Valley East Kern Water District is concerned. And we failed to implement some water saving plan. When we first started building we offered houses with either front yard landscaping or zeroscaping. No one wanted zeroscape. People wanted the lawn and we went along with the demand, of course. Now we have used this valuable resource and I think we abused the use of it but I don’t think it is going to affect us dramatically in the future. Q: You made changes to the golf course to reduce the amount of water used there? A: We are almost finished our renovation of the Rancho Vista Golf Course. What we did there is create drought resistant areas off of the tees, beautifully landscaped, things that require no water at all. We are going to save millions of gallons of water per year. Now to do this we had to ensure that the golf course quality was going to remain as far as the golfers were concerned. Before we did this we sent our greens keeper up to Las Vegas. Our requirement for water is dramatically different. The PGA will come out in the next couple of months to re-rate the course. We are positive it will be a higher rated course, a better course because of the work we have done. The savings that will accrue from the water will accrue for evermore. Q: Are you involved with philanthropic activities? A: Yes I am. I try to keep that primarily local. We try to support the school districts in a number of ways. And we’ve done it in some strange ways. Twice we’ve taken busloads of schools kids once to Edwards Air Force Base to see the landing of the space shuttle. Most recently we took 17 buses out to watch the launching of Spaceship One. Some of those things become memorable. It wasn’t easy for a company the size of Rancho Vista to do this and get the kids out to see this launch. It was built right in our backyard. So for these kids to be out there and see that we thought it was something important they might remember throughout their life.